sue and labor clause
An ocean and inland marine insurance provision that requires
the insured to protect damaged property from further loss once a
loss has occurred. It also establishes that the expenses of doing
so will be borne by the insurer and the insured "in proportion to
their respective interests" in the property. Thus, the insurer will
pay the full "sue and labor" costs if the amount of insurance is
equal to or greater than the value of the property. Current property
and marine forms usually contain a similar provision, but it is
seldom labeled a sue and labor clause. Instead, it is typically
included as one of the insured's "Duties in the Event of Loss."
An example would be the temporary placement of a tarp over a damaged
roof to mitigate further damage.
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