What type of coverage does the supplementary payments section of the CGL policy provide?

The supplementary payments section of a Commercial General Liability (CGL) policy provides coverage for post-judgment interest awarded by the judge. This interest refers to the additional amount awarded on a judgment amount from the date the judgment is made until it is paid. The supplementary payments are designed to cover specific costs that arise in relation to the defense and settlement of claims, ensuring that the insured is not financially burdened by these additional expenses after a judgment is issued.

In the context of the CGL policy, the supplementary payments section is separate from the primary coverage limits, which cover damages for bodily injury and property damage. It focuses on costs that can arise during the litigation process, such as court costs, certain types of legal expenses, and, indeed, the interest that accumulates on judgments. Understanding this aspect of the policy helps clarify what is included in supplementary payments and reinforces the importance of considering these costs in risk management and financial planning for businesses.

The other options are not included in the supplementary payments section of the CGL policy. Direct payments for property damage claims fall under the liability coverage, legal defense costs may be covered but generally include more than just the legal defense, and payments for punitive damages are typically not covered under liability policies, as they are meant