What types of damages are covered in liability insurance?

In Nevada, liability insurance covers two main categories of damages for a policyholder. These types of damages are compensatory damages and punitive damages. Compensatory damages are meant to reimburse a policyholder for any losses, while punitive damages are meant to punish the responsible party. Compensatory damages cover medical bills, lost wages due to time missed from work, pain and suffering, property damage, and more. These damages are meant to help the policyholder get back on their feet after an incident. Punitive damages are not as common and are awarded when it is determined that the responsible party’s behavior was so egregious or intentional that punitive damages are necessary to send a message about that kind of behavior. Punitive damages are meant to set an example for the party responsible and to deter others from engaging in similar behavior. No matter what type of damages are awarded, liability insurance in Nevada will cover them to keep the policyholder from suffering any further financial hardship due to another person’s bad behavior. This allows for justice to be served and for people to get back to normal life without having to worry about finances.

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