What types of damages are covered by insurance?

In California, insurance law generally covers two main types of damages: economic and noneconomic. Economic damages are those which can be easily quantified, such as medical costs, lost wages or property damage. These damages involve direct financial losses and can be determined by looking at bills, pay stubs, and other tangible evidence. Noneconomic damages are also covered by insurance in California. These damages refer to more subjective losses that are harder to measure, such as pain and suffering, loss of consortium, emotional distress, or loss of enjoyment of life. These types of damages are often more difficult for insurance companies to quantify, but may still be covered depending on the specific circumstances. In addition to the two primary types of damages, California insurance law also covers ‘punitive’ damages. Punitive damages are those intended to punish the defendant for their actions and to deter others from engaging in similar behavior in the future. These damages tend to be more limited than economic or noneconomic damages, but are still covered by insurance. Finally, California insurance law covers attorney’s fees. This includes any legal costs incurred by the insured party to pursue a claim or defense against the other party in a legal proceeding. These fees can often be paid out of the insurance policy, depending on the specific terms of the policy.

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What types of damages are covered by insurance?

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