Supplementary Payments Coverage as a Benefit of CGL Insurance

Most entrepreneurs understand the main benefit of commercial general liability insurance. CGL pays for your damages in case of a liability claim. However, supplementary payments coverage is a little-known critical benefit of CGL insurance. The coverage applies to reasonable expenses you might incur when dealing with a liability claim.

Below are some of the expenses to which the coverage applies.

Bail Bond

Criminal actions, including arrest, can sometimes intertwine with liability claims. If the offense is bailable, supplementary payments coverage may cover the bail bond cost.

Consider a case where you run a nightclub, and one of your bouncers fights and injures a patron. The patron reports the injury to the police, who then arrests your bouncer. In this case, your supplementary payment coverage can pay for the bouncer's bail bond so they can stay free pending trial.

Attorney Fees

If someone lodges a liability claim against you, your insurance company will hire a lawyer to defend the claim. A strong legal defense may help you to:

• Settlement payments
  
• Minimize settlement payments
  
• Protect your business reputation

Note that you need legal defense whether or not the claim is genuine. At the same time, legal fees can be expensive. Fortunately, supplementary payments include attorney fees.

Investigation Expenses

Most liability claims require investigation. The level of investigation depends on the complexity of the case. Consider an example of a restaurant facing a food poisoning claim. The insurance company, on behalf of the restraint, may investigate the claim to confirm:

• Whether the claimant ate the restaurant's food
• Whether the food actually made the claimant sick
• Whether anything else could have made the claimant sick

The investigations may involve:

• Reviewing security cameras
• Authenticating restaurant receipts,
• Testing food remains or packaging in the laboratory

All these things cost money, which supplementary payments should cover.

Expert Testimony Fee

You may also need an expert to defend the liability claim against you. The expert witness will explain technical terms and processes to help the court make an informed decision. You may need an expert witness if:

• The plaintiff has an expert witness
  
• Your case involves a complicated topic, such as product liability
  
• The case involves complicated damage calculations, such as future losses

Expert witnesses charge fees, often by the hour, which can add up to serious money. Again, supplementary payments will cover the fees.

Court Costs

Expect multiple forms of court fees if the liability claim against you proceeds to court. Courts in Chicago, IL charge different fees, such as:

• Filing fees
• Service fees
• Subpoena fees
• Court report charges

Court fees may seem low, but numerous fees throughout the case can add up to significant money. Prolonged cases tend to attract higher costs than short cases. Supplementary payments coverage will also pay court fees associated with your case.

Post-judgment and Prejudgment Interest

If a liability claimant wins their case against you, the court may order you to pay interest on the liability award. The interest directive makes sense if:

• There is a period between the injury or damage date to the settlement date
• There is a period between the judgment date and the time the claimant gets their settlement check

In such a case, your liability coverage pays the award, and supplementary payments coverage pays the interest.

Note that you can, and should, customize your insurance coverage to fit your business. Customization is necessary since different businesses face different risks.

At Illinois Insurance Center, we understand the variables that affect business insurance needs. As an independent insurance agency, we also deal with a wide network of insurance companies. We can help you get the coverage you need all around Chicago and the whole state of Illinois at affordable rates. Contact us for a free quote on all your insurance needs.