Coverage Extension – Supplementary Payments. 1) We will pay to or on behalf of an insured, with respect to any covered claim we investigate or settle, or any Suit against an insured we defend:
a) All expenses we incur to investigate, settle or defend suit against an insured, subject to:
i. we will investigate, negotiate, settle, defend and/or appeal with counsel selected, hired and paid by xx.
ii. we have no duty to settle, defend or pay any claim, lawsuit or judgment not covered under the terms this Policy.
b) Up to $250 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which Business Liability Coverage for applies. We do not have to furnish these bonds.
c) The cost of bonds to release attachments, but only for bond amounts within our Limit of Insurance. We do not have to furnish these bonds.
d) All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or Suit, including actual loss of earnings incurred up to $250 a day because of time off from work. We must be given original receipts, or written proof that can be verified, of expenses incurred. We have no duty to pay for expenses that cannot be verified.
e) All court costs taxed against the insured in a Suit defended by us. However, these payments do not include attorneys’ fees or attorneys’ expenses taxed against the insured.
f) Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the Limit of Insurance, we will not pay any prejudgment interest based on any period of time after we make the offer to pay the limit.
g) Post-judgment interest awarded on compensatory damages on that part of a judgment entered against the insured that does not exceed our limits of liability. We have no duty to make any interest payment if we have not been given both:
i. notice of Suit; and
ii. the chance to defend the insured. We have no duty to pay post-judgment interest after we have paid, offered to pay, or deposited in court the part of the judgment that is within our Limit of Insurance. Payment of this interest will not reduce the limit of liability.
2) If we defend an insured against a Suit and an indemnitee of the insured is also named as a party to the Suit, we will defend that indemnitee if all of the following conditions are met:
a) The Suit against the indemnitee seeks damages for which the insured has assumed the liability of the indemnitee in a contract or agreement t...
