What types of damages are covered by insurance?

In Pennsylvania, insurance law generally covers compensatory damages, or damages that are intended to make the injured party whole after sustaining a loss. This can include payments for medical expenses, lost wages, and even pain and suffering due to an accident. In some cases, punitive damages may also be recoverable. Punitive damages are intended to punish the at-fault party for their irresponsible or reckless behavior that caused the damage. The most common type of insurance policy that provides coverage for damages is a liability policy, which is typically held by individuals or businesses to protect against claims of negligence or other wrongful acts. Liability policies may provide coverage for compensatory and punitive damages, as well as attorney’s fees and costs associated with defending the claim. Other types of damage that may be covered by insurance policies include property damage, which may include losses from natural disasters or vandalism; and personal injury, which may include cases of medical malpractice, wrongful death, and assault. When an insurance policy is in place, the insurance company typically pays for damages up to the limits of the policy. In certain cases, damages may exceed those limits, and the policyholder may be responsible for the remaining balance. It is important to understand the terms of any insurance policy before filing a claim so that you are clear on what is covered and what is not.

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