Give an example of sue and labour ?

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FOLLOW

Sue and labour is an extraordinary expenditure made in time of peril to avert
or minimise any loss or damage to the subject matter insured. Because such an expenditure is incurred for the safety or preservation of the subject matter insured, it may be claimed under the separate head of a particular charge.

Sue and labour charges are not to be confused with general average expenditure. They are incurred for the benefit of only a single interest (e.g. the vessel, or the cargo), whereas general average expenditure is incurred for the common benefit (e.g. of the ship, cargo and freight, if any at risk).

Examples of sue and labour charges might include costs incurred by a shipowner in recovering a lost anchor and cable, and costs incurred by a cargo owner of having a refrigerated cargo stored ashore while a ships refrigerating machinery is under repair.

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FOLLOW

also called as the duty of the assured

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provides that the assured has a duty to take all reasonable steps to avert or minimise any loss for which a claim
would be payable under the policy. In return, most costs incurred in taking such steps are recoverable from the
underwriters.

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FOLLOW

Examples of sue and labour charges might include costs incurred by a shipowner in recovering a lost anchor and
cable, and costs incurred by a cargo owner of having a refrigerated cargo stored ashore while a ship’s refrigerating
machinery is under repair.