Los Angeles Claims Adjuster Property and Casualty Exam 2025 – 400 Free Practice Questions to Pass the Exam

Punitive damages are designed to punish the wrongdoer for particularly egregious behavior and to deter similar future conduct. Unlike compensatory damages, which are intended to compensate the injured party for their actual losses, punitive damages go beyond simple compensation and are awarded as a form of punishment. Because they serve this purpose, they are not guaranteed or recoverable in every case. Courts will typically award punitive damages only when the defendant's actions are deemed to be especially harmful or malicious, indicating a need for punishment rather than mere compensation.

In contrast, compensatory damages are meant to reimburse the injured party for their losses, such as medical expenses or lost wages, and are generally recoverable. Special damages refer to quantifiable losses that can be calculated, while general damages cover non-economic losses, such as pain and suffering. These other types of damages are typically aimed at making the injured party whole rather than punishing the wrongdoer.