What is a Duty of Assured (Sue and Labour) Clause?

An insurance clause that obliges the assured to take all reasonable steps to avert or minimise any loss for which a claim would be payable under the policy;Β 

in return, most costs incurred in taking such steps are recoverable from the underwriters. In practice these expenses are called “sue and labour charges”. Sue and labour charges are supplementary to those covered by the policy, and do not include expenses incurred in general average or salvage, these being recoverable separately from the insurer.


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