ABSTRACT
The insured may recover from the underwriter in respect of expenditure incurred as a result of an insured peril. This chapter is concerned with the recovery of expenditure which is not part of the measure of indemnity but is incurred to avert or diminish loss covered by the policy. Where there is a sue and labour Clause which does not expressly provide for reimbursement of expenses by underwriters, a term to that effect that may be implied. However, it is an open question whether the insured is entitled to sue and labour expenses in the rare case of a policy which contains no sue and labour Clause at all. The duty to sue and labour, and any right to recover expenses, arises when an insured peril is operative or obviously imminent, and continues (subject to one caveat) for so long as it is reasonable to act so as to preserve the property from an insured peril.
