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Article: Unexpected Use Seen For Sue & Labor Clause.(Marine insurance)(Brief Article)
- Article from:
- National Underwriter Property & Casualty-Risk & Benefits Management
- Article date:
- June 14, 1999
- Author:
CopyrightCOPYRIGHT 1999 The National Underwriter Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The sue-and-labor clause is not new to those in the insurance industry. It has long been associated with marine insurance, with the prime purpose being to have the insured safeguard a damaged vessel and prevent further loss to covered property for which the underwriter would be liable. The insured would, in turn, be reimbursed for its expenses in mitigating the damages.
A typical sue-and-labor clause, cording to "Couch on Insurance" (2d, 55:124), "provides that in case of misfortune, it shall be lawful for the insured to sue, labor, and travel for the defense, safeguard, and recovery of the insured property, to the charges whereof the Underwriters will contribute ...