If you’ve been named in a lawsuit, you may have seen the term damages and want to know what that means. Several different things can be outlined as damages; if you’re found to be responsible, you’ll have to cover these expenses.

Medical Expenses

Some of the most common damages in any suit are medical expenses related to the case. This could be for bodily injury or mental health treatment. If the party has to incur future costs due to these damages, then your insurance will cover what’s already been paid and the cost for future expenses.

Property Damage

Any personal damage that was destroyed, such as a vehicle, equipment, or anything else that needed to be repaired or replaced, can be considered property damage. Anything recorded as being damaged in the suit will need to be covered.

Punitive Damages

In some cases, punitive damages can be related to different cases. These are used as a form of financial punishment for the act that was committed. They will exceed basic compensation and cover additional costs and are only awarded in extreme cases. These are usually found in drunk driving or extreme cases.

Liquidated Damages

In cases of construction or development, liquidated damages could be part of the original contract. If they were and you’re found responsible for these damages, then you’ll have to pay a sum to cover the cost of the liquidation that went into the project. This can be a total sum or a certain amount arranged per day.

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