Also known as: supplementary payments insurance · supplementary payments coverage · supplementary payments coverages A and B
Supplementary payments are certain defense-related costs an insurer pays on top of your policy limit, so they do not reduce the money available to settle a claim.
Supplementary payments are a set of extra costs that a liability policy, such as a commercial general liability form, agrees to pay in addition to the limit of insurance. They typically include defense costs, court costs taxed against you, the premium on required bonds, post-judgment interest, and a limited daily allowance for your lost earnings while assisting the defense. Because these amounts are paid outside the limit, a covered defense does not eat into the dollars available to pay a settlement or judgment, which preserves more protection for the underlying claim.
Supplementary payments are costs an insurer agrees to pay in addition to the policy limit, typically covering defense expenses, court costs, bond premiums, and post-judgment interest. Because they sit outside the limit of insurance, they do not reduce the amount available to pay a settlement or judgment.
No. That is the whole point of supplementary payments: they are paid on top of the limit of insurance. This differs from a defense-within-limits policy, where every dollar spent defending you shrinks the money left to resolve the claim.
Common supplementary payments on a general liability policy include the cost of defense, court costs assessed against the insured, the premium on appeal or attachment bonds the insurer requires, post-judgment interest, and a small daily reimbursement for your lost earnings while helping with the defense. The exact list and any caps are spelled out in the policy form.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.