Supplementary Payments

Definition - What does Supplementary Payments mean?

Supplementary payments are payments that are additional to the basic providing of liability insurance coverage. The costs for these payments are often incurred when an insured party is defending a claim investigation. Examples of supplementary payments include payments for reasonable travel expenses, first aid, premiums for bail bonds, post-judgement interest, etc.

Insuranceopedia explains Supplementary Payments

Many liability insurance policies will include clauses in which that insurer agrees to pay for supplementary payments. This can be extremely helpful if an insured party has to participate in a claims investigation. If a lawsuit occurs due to a dispute of the claim, than attorneys fees can potentially be included in the supplementary payments. However, they can also be include as damages from the lawsuit. Whether they are considered as a supplemental payment, or as damages depends on the specific policy.

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