What are the types of damages that can be recovered in an insurance claim?

In Arizona, there are two types of damages that can be recovered in an insurance claim: compensatory and punitive damages. Compensatory damages are awarded to compensate for injury, such as medical expenses, lost wages, or property damage. Punitive damages are designed to punish the wrongdoer for their negligence and are only awarded if the wrongdoer acted with gross negligence or recklessness. Compensatory damages are the most common type of damage awarded in an insurance claim. They can include medical expenses, lost wages, property damage, attorney fees, court costs, and any other damage the plaintiff suffered as a result of the accident. Compensatory damages are intended to make the plaintiff whole again, to the extent their losses were caused by the defendant’s negligence. Punitive damages are a less common type of damage awarded in an insurance claim. These are intended to punish the wrongdoer and to deter similar behavior or negligence in the future. These damages are awarded in rare circumstances and require clear and convincing evidence of gross negligence or recklessness. Punitive damages are not designed to compensate the plaintiff—they are designed to punish the wrongdoer for their negligent behavior. In summary, an insurance claim in Arizona can result in compensatory and punitive damages. Compensatory damages are typically awarded to cover the costs associated with an accident or injury, while punitive damages are less common and awarded to punish the wrongdoer for gross negligence or recklessness.

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