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Insurance

Punitive damages

When a defendant is found to have acted in a grossly negligent manner, they may be assessed punitive damages as a way to set an example and discourage others from behaving similarly. These damages are typically in addition to any other damages awarded. In other words, they serve as a form of punishment for the defendant's behavior. This is an important concept to understand in the world of finance, as it highlights the consequences of reckless or careless actions. As future financial professionals, it is crucial to consider the potential for punitive damages when making decisions for our clients and businesses.
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