A more thorough explanation:

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. This 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. The sue-and-labor clause would cover these expenses.

Another example is if a cargo is damaged during transport, the owner may incur expenses to minimize the damage, such as hiring a surveyor to assess the damage and prevent further damage. The sue-and-labor clause would cover these expenses.

The sue-and-labor clause is separate from the perils clause, which covers the actual loss or damage to the insured property. The sue-and-labor clause covers expenses incurred to prevent or minimize the loss or damage.