Most if not all liability insurance policies have clauses dealing with supplementary payments: the standard Business Auto policy (BAP), Personal Auto policy (PAP), and General Liability policy all contain supplementary payments sections.
The standard Homeowners' policy has its claim expenses provisions, which contain few or no controversial words or phrases that cause major coverage disputes.
The first provision in the supplementary payments clause states that the insurer will pay the expenses it incurs (note that the standard PAP puts this provision last). This seems reasonable because the insurer not only has the duty to defend the insured against covered liability claims, but also takes upon itself the right to settle any claim or lawsuit that is filed against the insured. This duty involves expenses, for which the insurer should be responsible.
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