Sue and Labour Clause Law and Legal Definition

Sue and labour clause refers to a standard clause in a maritime insurance policy allowing an insured to recover from the insurer any reasonable expenses incurred by the insured in order to minimize or avert a loss to the insured property, for which loss the insurer would have been liable under the policy.

The nature and effect of the Clause is that it is in substance a contract by which the underwriter agrees to pay the assured the expense he may reasonably and properly incur in preventing a loss which, if it occurred, would fall on the underwriter under the other clauses in the policy.