What does Punitive Damages mean? Read on to discover the definition & meaning of the term Punitive Damages - to help you better understand the language used in insurance policies.
Damages in excess of those required to compensate the plaintiff for the wrong done, which are imposed in order to punish the defendant because of the particularly wanton or willful nature of his or her wrongdoing. Also called "exemplary damages." Although the standard commercial general liability (CGL) policy and business auto policy (BAP) contain no punitive damage exclusion, many umbrella and excess liability policies contain such an exclusion.
We hope the you have a better understanding of the meaning of Punitive Damages.