Sue and labor expenses refer to costs result from attempts to save damaged property from further loss.

• A. Legal action costs
• B. Costs to save damaged property from further loss
• C. Costs of replacing damaged property
• D. Salvage charges

Answer: (B)

Sue and labor expenses are the costs the insured incurs to prevent further damage to property after a covered peril. This covers reasonable measures taken to save or protect damaged property—like boarding up openings, moving items to safety, or shoring up a structure—so that the loss doesn’t get worse. These costs are separate from the actual loss (replacing or repairing the property) and from any legal action costs or salvage charges. In short, they’re the money spent to stop more damage from occurring, which is why this option fits best: it describes costs to save damaged property from further loss.