Which expenses may be covered under supplementary payments?

Supplementary payments in an insurance policy cover additional expenses incurred by the insurer that go above and beyond the policy limits for covered claims. This includes defense costs and investigation expenses, which are critical in managing a claim.

Defense costs encompass legal fees and expenses when the insured is facing a lawsuit, ensuring they receive adequate representation. Investigation expenses pertain to the costs associated with gathering information about a claim, assessing its validity, and determining the appropriate course of action for defense or settlement.

These supplementary payments do not affect the limits of liability set within the policy, thereby providing additional security and financial support to the insured during a claim process. This coverage is crucial as it helps protect the financial interests of the policyholder while navigating legal complexities. Other options listed do not encapsulate the breadth of supplementary payment coverage, focusing instead on specific elements that may not align with the broader scope defined in insurance policies.