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Sue and labour (mitigation costs)
Boat insurance term, area: Claims
Sue and labour costs are what you spend to prevent or reduce a loss, such as pumping out, extra mooring lines or a tow into shelter. As a general principle an insurer reimburses them once an insured loss has happened or is immediately threatened, but not before. That is why lifting a boat out as a precaution ahead of a forecast storm is generally not recoverable, even when it is the sensible thing to do.
What to check: Does the wording include a sue and labour clause, is it paid in addition to the sum insured, and when do costs count as reasonable? Does it ask the owner to contact the insurer before larger measures?
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A general explanation in our own words.
What applies to you is set only by the wording of your own policy.
