What are special damages in the context of insurance claims?

Special damages refer to specific, measurable losses that can be clearly defined and quantified in monetary terms. In the context of insurance claims, this typically includes expenses that the claimant has incurred or will incur as a direct result of an incident, such as medical bills, repair costs, or lost wages up to the date of the claim. These damages are distinguishable from general damages, which cover non-economic losses like pain and suffering or emotional distress.

The key characteristic of special damages is that they can be easily calculated through documentation and receipts, making them clear and straightforward for the insurance adjuster to evaluate. For instance, if an individual required medical treatment after an accident, the costs associated with those medical services are classified as special damages. Being able to provide evidence of such expenses solidifies the claim for compensation surrounding these specific financial impacts.

On the other hand, general compensation for emotional distress represents a more abstract form of compensation that does not have direct monetary documentation. Compensation for long-term disabilities and future earnings loss estimates typically involve projections and are often considered more complex forms of damages due to their uncertain nature and the need for expert testimony or calculations.