Is this the "clutch sensor"

There is a a wire running to the cluth lever side of the handle bar, and looks like it may sensor when the clutch is in an out. My question is what is it, whats it do, and what does it mean if mine is broke.

 

It is indeed the clutch lever switch;

it tells the safety interlock system that the clutch is pulled in;

with it broken you will not be able to start the bike in gear even if you pull in the clutch.

The safety system consists of that clutch switch, a neutral switch, a sidestand switch and a sidestand relay (if so equipped) and the safety "cutout" relay. While slightly different from model to model, it prevents the bike from being started while in gear unless the clutch is pulled in. It also shuts the bike off if you put it in gear with the sidestand down, regardless of clutch position.

 

ok cool, thanks bigfitz.