What are 'Supplementary Payments' in a CGL policy?

• A. Additional payments for defense costs, bonds, first aid, and investigative expenses, typically outside the policy limit.
• B. Extra coverage beyond standard limits.
• C. Additional premiums charged.
• D. Reimbursement of medical expenses.

Answer: (A)

Supplementary Payments are the insurer’s extra payments to defend and handle a claim, separate from paying damages. They cover defense costs (attorney fees, court costs, and similar expenses), bonds (such as bail or appeal bonds) required to defend the suit, costs for first aid given at the scene, and investigative expenses. These amounts are paid in addition to the policy’s limit of liability, meaning they don’t reduce the amount available to pay damages. Medical expenses to others aren’t included in Supplementary Payments; those are covered under medical payments or similar coverage.