Which BAP supplementary payment covers post judgement interest?

• A. Post judgement interest
• B. Bail bonds - up to $2,000
• C. Cost of bonds for release of attachments made against the insured
• D. Reasonable expenses that the insured incurs at the company's request

Answer: (A)

In a Business Auto Policy, supplementary payments are extra amounts the insurer pays during litigation, separate from the actual damages or settlements. Among these, post-judgment interest is money the court adds to a judgment for the time between the judgment and when it’s paid. The insurer covers that interest as a supplementary payment, so the insured isn’t paying it out of pocket and it doesn’t come out of the liability limit.

Other listed items—bail bonds up to a set amount, the cost of bonds for releases of attachments, and reasonable expenses incurred at the insurer’s request—are also covered under supplementary payments, but they cover different aspects of the defense and court proceedings. The item that specifically handles the interest that accrues after a judgment is entered is post-judgment interest.