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Injury Attorney LawyerInformation · Not Advice
Glossary·3 min read·Updated Apr 10, 2026

Damages

Damages is the legal umbrella for compensation. In injury cases, damages are usually split into economic, non-economic, and sometimes punitive categories.

Economic damages

Economic damages cover measurable financial losses with documented dollar amounts. They include medical bills, lost wages, loss of earning capacity, property damage, and out-of-pocket costs. Because they can be proven with receipts, records, and expert calculations, they're usually less disputed than non-economic damages.

Non-economic damages

Non-economic damages cover losses that don't come with a receipt — physical pain, emotional distress, loss of enjoyment of life, disfigurement, loss of consortium. These require judgment rather than arithmetic and tend to be where insurers and injured parties disagree most.

Punitive damages

Punitive damages are a separate category meant to punish rather than compensate. They're rare and require conduct beyond ordinary negligence — usually intentional, malicious, or grossly reckless behavior. Punitive damages are often subject to state law caps and to constitutional limits based on the ratio to compensatory damages.

Compensatory vs. punitive

Compensatory damages (economic + non-economic) are meant to restore the injured person. Punitive damages are meant to send a message to the defendant and others. Most injury cases involve only compensatory damages.

Key Takeaways

  • 01Damages is the legal word for money awarded for a loss.
  • 02Economic damages have receipts; non-economic damages require judgment.
  • 03Punitive damages are rare and require conduct worse than ordinary negligence.
  • 04State caps and constitutional limits can restrict non-economic and punitive awards.

General information only. This page explains common concepts in plain language. It is not legal advice and does not create an attorney-client relationship. Laws vary by state and change over time. For any specific situation, consult a licensed attorney in your jurisdiction.