Actual Damages

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Actual Damages In insurance, actual damages are the monetary losses that a policyholder experiences as a result of a covered event. These losses can be either economic or non-economic in nature. -Economic damages are those that can be easily quantified, such as medical expenses, lost wages, and property damage. -Non-economic damages are those that are more difficult to quantify, such as pain and suffering, emotional distress, and loss of enjoyment of life. Examples of atual damages: -Medical expenses -Lost wages -Property damage -Pain and suffering -Emotional distress -Loss of enjoyment of life The money award that the defendant pays to the injured plaintiff to cover the actual costs of the plaintiff’s loss or injury. Also called compensatory damages. This loss may be from lost sales, lost licensing revenue, or any other provable financial loss directly attributable to the infringement. Insurance policies typically cover actual damages, up to the limits of the policy. However, there are some exceptions. For example, some policies may exclude coverage for intentional acts, or for losses that are caused by the policyholder's own negligence. When a policyholder files a claim for actual damages, the insurance company will typically investigate the claim to determine the amount of damages that are covered. The insurance company may also require the policyholder to provide documentation of their losses, such as medical bills, wage stubs, and receipts for property damage. Actual damage is different from general and special damages in that general damages represent the types of damages that can not easily be assigned a monetary value, such as pain and suffering, loss of consortium and emotional trauma. While Special damages include things like medical bills and lost wages. These are your “out of pocket” expenses. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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