What does the CGL coverage supplementary payments NOT include?

Supplementary payments under a Commercial General Liability (CGL) policy are intended to cover certain additional costs that insurers incur when handling liability claims. The correct answer highlights that compensation for public relations services is not included in these supplementary payments, which generally focus on costs directly associated with legal defense and claims management.

The supplementary payments typically encompass lost wages for the insured when they are involved in legal proceedings, legal defense costs without being bounded by the policy’s liability limits, and litigation expenses related to claims made against the insured. Each of these elements enhances the support provided to the policyholder in the event of a claim, facilitating their defense without adding financial burden.

Public relations services, however, are not considered necessary costs for managing legal liability. While such services can be valuable for maintaining a company’s reputation after an incident, they do not fall under the scope of what is typically covered by supplementary payments in a CGL policy. This distinction is important for understanding the broader implications of coverage, where the primary focus is on legal defense rather than public image management.