Legal Dictionary of Pakistan

sue-and-labor clause

Marine insurance. A provision providing that the marine insurer will cover the costs incurred by the insured in protecting the covered property from damage or minimizing actual damages to the property. -Also termed rescue clause. "Some insurance today is written against 'all risks' Besides the perils clause recovery under the policy can be had on the entirely separate 'sue and labor' clause Under this clause, the underwriter may become liable for certain charges incurred by the assured in caring for the insured property, whether or not there is any actual loss or damage. Where sue-and-labor charges are incurred and loss also occurs, the underwriter may become liable for more than the policy amount, which limits only a claim for loss of or damage to the goods or vessel." Grant Gilmore & Charles L. Black, Jr., The Lace of Admiralty § 2-10, at 75 (2d ed. 1975).