A sue and labour clause is a provision found in maritime insurance policies. It allows the insured party to recover reasonable expenses incurred to prevent or reduce a loss to their property. This clause ensures that if a loss occurs, the insurer will cover the costs associated with efforts to avert that loss, as long as those efforts are deemed reasonable and necessary.
This clause is primarily used in maritime law, which governs shipping and navigation. It is an important aspect of marine insurance, allowing policyholders to take proactive measures to protect their property without the fear of incurring additional costs. Users can manage related forms and procedures using templates available through services like US Legal Forms, which are drafted by qualified attorneys.
Here are a couple of examples of abatement:
For example, if a ship is at risk of sinking due to a hull breach, the captain may incur costs to pump water out and make temporary repairs. Under a sue and labour clause, the insurer would cover these expenses if they are reasonable. (hypothetical example)
| Term | Definition | Key Differences |
|---|---|---|
| Sue and labour clause | A provision allowing recovery of costs incurred to prevent loss. | Focuses on proactive measures to avert loss. |
| Indemnity clause | A provision that compensates for losses or damages incurred. | Typically covers losses after they occur, not preventative measures. |
If you believe a sue and labour clause applies to your situation, document all expenses incurred while trying to prevent a loss. Keep receipts and records of your actions. Consider using US Legal Forms to find templates that can help you file a claim with your insurer. If the situation is complex, seeking professional legal advice may be beneficial.
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It's a clause in maritime insurance that allows recovery of costs incurred to prevent or minimize loss.