What are special damages in an insurance context?

Special damages in the insurance context refer specifically to tangible damages that can be quantified and measured in monetary terms. These damages often include medical expenses, repair costs, loss of income, and any other direct financial losses that can be documented with receipts or bills. Since special damages are based on actual financial loss rather than subjective feelings or experiences, they are essential in calculating the compensation owed to an insured party following an incident.

This definition differentiates special damages from other concepts such as intangible damages, which pertain to emotional distress, and unforeseen damages, which are typically not covered by an insurance policy. Additionally, while property damage could fall under special damages if measurable, comprehensive insurance covers a broader scope of risks, including those that are not solely quantifiable by direct financial loss.

Thus, the option identifying special damages as measurable, tangible financial losses accurately reflects their role in insurance claims.