Supplementary Payments — a term used in liability policies for the costs associated with the
investigation and resolution of claims. Supplementary payments are normally
defined to include such items as first aid expenses, premiums for appeal and
bail bonds, pre- and post-judgment interest, and reasonable travel expenses
incurred by the insured at the insurer's request when assisting in the
defense of a claim. Actual settlements/judgments are considered damages rather
than supplementary payments. Attorneys' fees may be considered as either
damages or supplementary payments, depending on the policy. Commercial general
liability (CGL) and business automobile liability policies cover supplementary
payments in addition to their limits of liability. In contrast, supplementary
payments reduce the limit of coverage under most (although not all)
professional liability policies.