General Damages
What Does General Damages Mean?
General damages are damages (financial compensation) awarded for injuries or losses that do not have have a specified dollar amount. In other words, general damages provide financial compensation for intangible things such as pain and suffering or certain breaches of contract. In the context of insurance, liability insurance coverage can prevent parties from having to shoulder the full cost of paying general damages.
Insuranceopedia Explains General Damages
General damages are different from special damages and punitive damages. Special damages have an exact dollar amount. Punitive damages are financial punishments. There are many different types of liability on the market for both individuals and companies to purchase to protect themselves from the risk of owing general damages. Product liability insurance and general liability insurance are two examples. Product liability insurance protects companies against injuries from faulty products and general liability insurance protects against general injuries on a property.
