Skip Navigation Links IRMI Online > Glossary of Insurance & Risk Management Terms > Terms > E > extracontractual damages
Warning! You are currently not signed in. Any products you have purchased will not be displayed until you Sign In

extracontractual damages

Damages that are in addition to or outside of a contract of insurance. Extracontractual damages are awarded in "bad faith" claims against insurance companies. They are a form of punitive damages, intended to punish extreme insurer conduct. Extracontractual damage awards most frequently arise from unfair claims handling practices (e.g., unjust denial of coverage, failure to settle a claim within policy limits). See also Bad faith.

Links for IRMI Online Subscribers Only: PLI XV.T


Social Media