What does the rule for sue and labor require?

The rule for sue and labor outlines the obligations of the insured in the event of a loss. Specifically, it requires that the insured takes reasonable steps to save and preserve their goods from further damage or loss after a covered incident occurs. This may include actions such as securing the property, performing repairs, or taking any necessary measures to mitigate further loss.

By requiring the insured to actively protect their goods, the rule ensures that losses are minimized, which can ultimately benefit both the insured and the insurer. If the insured neglects this responsibility, they may face consequences, such as reduced claims payouts or even a denial of coverage. This principle is rooted in the idea of shared responsibility—while insurers provide coverage, insured parties also have a duty to manage their risks effectively.