What types of damages are covered in liability insurance?

Liability insurance is a type of insurance that covers damages resulting from a person’s negligence or fault. It is commonly used to protect an individual from the financial costs associated with being sued or liable for damages. In North Dakota, liability insurance typically covers three types of damages. The first type of damages covered by liability insurance is compensatory damages. These damages are meant to compensate the person injured from the negligence or fault of the insured. This might include medical costs, lost wages, or property damage. The second type of damages is general damages. These damages are not easily quantifiable and can include such things as pain and suffering, mental anguish, and loss of quality of life. The third type of damages covered is punitive damages. Punitive damages are awarded to the plaintiff as a way to punish the wrongdoer and/or to deter others from committing the same act in the future. These damages are typically awarded when an act is particularly egregious or reckless. In North Dakota, liability insurance usually covers all three of these types of damages. It is important to review your policy carefully to make sure you have the coverage you need for your specific situation.

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