What are Supplementary Payments?
Supplementary payments in insurance refer to additional financial provisions made by an insurance company to the policyholder beyond the basic coverage. These payments are typically made to cover certain expenses or costs that may arise as a result of a covered loss or claim. For example, supplementary payments may include reimbursement for legal expenses, court costs, and attorney fees during the defense of a liability claim. The payments provide the policyholder with financial support throughout the claims process so they are adequately protected beyond the primary coverage of the insurance policy.
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