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What is the purpose of Supplementary Payments in conjunction with liability coverage in a BOP?

Make incidental payments before final settlement

Cover costs associated with defending and investigating a claim

Supplementary Payments in conjunction with liability coverage in a BOP serve the purpose of covering costs associated with defending and investigating a claim. This includes paying for legal fees, expert witness fees, and other expenses incurred during the claims process. Option A is incorrect because Supplementary Payments only cover costs related to the claim, not incidental payments. Option C is incorrect because lost wages would fall under the category of Bodily Injury coverage, not liability coverage. Option D is incorrect because Supplementary Payments do not cover additional damages found after settlement, as those should have been addressed in the initial settlement amount.

Cover a claimant's lost wages

Cover additional damage found after settlement

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