In terms of liability coverage, what distinguishes special damages from general damages?

Special damages are defined as those that can be clearly quantified and assigned a specific dollar value, such as medical expenses, lost wages, and property damage. These are tangible losses that can be proved with documents like invoices and pay stubs. In contrast, general damages pertain to non-economic losses that are more subjective and do not have a predetermined monetary value, such as pain and suffering, emotional distress, or loss of companionship.

The distinction here highlights the nature of these damages in liability coverage. Since special damages have concrete figures associated with them, they provide a clearer basis for compensation when settling claims or adjudicating liability disputes.

This understanding is essential in the context of liability coverage, as it emphasizes the aspects of quantifiable loss versus subjective impact, which can affect how claims are assessed and resolved. Understanding this distinction can significantly influence how claims are presented and negotiated.