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Simple English definitions for legal terms
rescue clause
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A quick definition of rescue clause:
A rescue clause, also known as a sue-and-labor clause, is a provision in marine insurance that states the insurer will cover the costs incurred by the insured in protecting the covered property from damage or minimizing actual damages to the property. This means that the insurer will help the insured party protect their interests and cover certain charges incurred in caring for the insured property, whether or not there is any actual loss or damage. It is important to note that sue-and-labor charges can be incurred even if no loss or damage occurs.
A more thorough explanation:
A rescue clause, also known as a sue-and-labor clause, is a provision in marine insurance that covers the costs incurred by the insured in protecting the covered property from damage or minimizing actual damages to the property. The clause requires the insurer to "sue and labor" to protect the insured party's interests.
For example, if a ship is in danger of sinking, the owner may incur expenses to prevent the ship from sinking, such as hiring a salvage company to pump out water. The rescue clause would cover these expenses.
The sue-and-labor clause is separate from the perils clause, which covers losses or damages caused by specific risks, such as storms or collisions. The rescue clause covers expenses incurred to prevent or minimize losses, regardless of whether there is actual damage to the property.
Overall, the rescue clause provides additional protection to the insured party and ensures that they are not left with significant expenses in the event of a potential loss or damage to their property.