Introduction

22.1 The insured may recover from the underwriter in respect of expenditure incurred as a result of an insured peril, where that expenditure is, or is part of, the measure of indemnity. 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. The S.G. Form contained a centuries-old provision which permitted the assured to sue and labour, but did not oblige him to do so, namely: