Special Damages
Specific, measurable financial losses that can be calculated with precision and are directly attributable to an incident covered by insurance. These include quantifiable expenses like medical bills, lost wages, property repair costs, and other out-of-pocket expenses with clear documentation.
Example
“After the car accident, the insurance adjuster calculated special damages of $15,000, including $8,000 in medical expenses, $4,000 in lost wages, and $3,000 in vehicle repairs.”
Memory Tip
Special damages are 'specifically calculable' - they have specific dollar amounts with specific receipts, unlike general damages which are harder to pin down.
Why It Matters
Special damages represent the concrete financial impact of covered incidents and are typically easier to recover through insurance claims because they can be documented with receipts and records. Understanding this distinction helps policyholders properly document their losses and ensures they receive full compensation for quantifiable expenses.
Common Misconception
Many people believe all damages from an accident are automatically covered equally by insurance, not realizing that special damages require specific documentation and proof of expenses. They may also assume that emotional distress or pain and suffering fall under special damages, when these are actually general damages that are much harder to quantify and recover.
In Practice
A restaurant owner suffers a kitchen fire that forces closure for two months. Special damages include: $25,000 in equipment replacement costs (receipts from vendors), $18,000 in lost revenue (calculated from previous year's sales records), $8,000 in employee wages paid during closure (payroll records), and $3,000 in temporary kitchen rental (lease agreement). Total special damages of $54,000 are easily documented and typically covered in full. However, the owner's stress and reputation damage are general damages that are harder to prove and recover.
Etymology
The term originated in English common law, distinguishing 'special' (specific, calculable) damages from 'general' (subjective, estimated) damages, entering insurance terminology in the early 20th century.
Common Misspellings
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