Which statement regarding supplementary payments of a commercial general liability policy is NOT true?

In a commercial general liability policy, supplementary payments are designed to cover specific expenses that arise in conjunction with a liability claim. One of the key features of these payments is that they cover defense costs, which are provided by the insurer separate from the policy limits. This allows insured parties to manage legal fees without directly impacting their limit of liability for claims made against them.

The statement that supplementary payments pay for defense costs, cover court costs, and do so even after the aggregate limit has been reached is incorrect. Once the aggregate policy limit is exhausted, the supplementary payments, which are subject to the terms of the policy, do not extend coverage for additional claims or defense costs. The purpose of supplementary payments is to manage risks associated with liability claims without it affecting the overall limits of the policy, thus ensuring that there are available funds for settlements or judgments.

Therefore, the assertion that supplementary payments continue to cover defense costs after the aggregate limit has been reached is not accurate. In practice, once the limits are reached, any further defense costs would need to be covered by the insured themselves or through other means.