Issue #3043
Sue and Labor Clauses

Sue and Labor Clauses: The Basis for Mitigating, Expediting and Other Policy Provisions

In this issue of Adjusting Today, well-known insurance expert Donald S. Malecki, CPCU, examines policy provisions for mitigating and/or expediting expense, especially their root in the historic sue and labor clause. “The primary purpose for a sue and labor clause is for the benefit of the insurer, even though the insured benefits from being reimbursed for costs and expenses incurred in reducing or eliminating loss,” writes Mr. Malecki. The inclusion of several court cases’ interpretation of that clause makes this an especially informative article.