In liability insurance, what is typically not included in supplementary payments?

In liability insurance, what is typically not included in supplementary payments?

• A. Defense costs
• B. Investigation costs
• C. Claims settlement costs
• D. Loss of income

Answer: (D)

In liability insurance, supplementary payments extend beyond the base coverage and are designed to cover additional costs incurred while handling a claim. These payments typically include defense costs, investigation costs, and claims settlement costs, which are directly associated with the adjustment and handling of a covered claim. Loss of income, however, is generally not included under supplementary payments. This is because supplementary payments are focused on the costs associated with defending against claims and managing the claims process rather than compensating the insured for lost income resulting from the incident that led to the liability claim. Loss of income might be covered under a different type of coverage, but it is not part of the supplementary payments in liability insurance policies.

In liability insurance, supplementary payments extend beyond the base coverage and are designed to cover additional costs incurred while handling a claim. These payments typically include defense costs, investigation costs, and claims settlement costs, which are directly associated with the adjustment and handling of a covered claim.

Loss of income, however, is generally not included under supplementary payments. This is because supplementary payments are focused on the costs associated with defending against claims and managing the claims process rather than compensating the insured for lost income resulting from the incident that led to the liability claim. Loss of income might be covered under a different type of coverage, but it is not part of the supplementary payments in liability insurance policies.