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The Sue and Labour Clause in an insurance policy serves to encourage insureds to take reasonable and necessary steps to minimize loss or damage after an incident occurs. This clause emphasizes the duty of the insured to act in a manner that prevents further losses and facilitates recovery. It reinforces the idea that the insured should do what they can to mitigate damages, which ultimately benefits both the insured and the insurer.

By incorporating this clause, insurers aim to ensure that the insured actively participates in the claims process and takes initiatives to safeguard property or lessen the impact of the loss. This proactive approach helps in maintaining the value of the insured property and can affect the overall outcome of the claim.

While the other options relate to aspects of insurance contracts and claims, they do not capture the specific motivation behind the Sue and Labour Clause, which is fundamentally about encouraging insured parties to act responsibly and avoid unnecessary escalation of losses.