Which statement is true regarding supplementary payments in the CGL Coverage Form?

In the context of the Commercial General Liability (CGL) Coverage Form, supplementary payments are designed to cover certain additional costs that the insurer will pay on behalf of the insured in connection with a covered claim. However, the key aspect of these payments is that their obligation ends when the limit of insurance is exhausted.

This means that once the amount available under the policy is fully paid out—whether through damages, settlements, or other covered expenses—there are no further financial obligations from the insurer under the policy. Supplementary payments typically include costs such as defense expenses, court costs, and interest on judgments, but they do not extend beyond the limits set in the insurance policy. Understanding this limitation is crucial as it informs policyholders about the extent of coverage and potential gaps once the policy limits are reached.

The other options do not accurately reflect the nature of supplementary payments. For example, they are subject to the overall limits of the policy (contrary to the notion that they are not subject to limits). They also do not continue indefinitely, as the obligation ceases once the policy limit is reached. Lastly, supplementary payments apply regardless of whether a jury trial is involved or not.