Who is typically responsible for determining how much compensatory damage is awarded in a liability claim?

In liability claims, the court system or jury is responsible for determining the amount of compensatory damages awarded. This process involves assessing the facts of the case, the extent of the damages suffered by the injured party, and any related factors that may influence the compensation amount, such as medical expenses, lost wages, pain and suffering, and other relevant damages.

The court or jury evaluates the evidence presented during the trial, including testimony and documentation, to arrive at a fair and just amount that reflects the actual losses incurred by the claimant. Their decision is grounded in legal principles and precedents, ensuring that the award is consistent with the nature of the claim and the applicable laws.

In contrast, the roles of an insurance agent or underwriter do not involve determining damage amounts in liability claims. The insurance agent typically works with policyholders to assist with coverage and claims but does not have the authority to set damages. The underwriter assesses risk and determines premium rates based on the insurance policy but also does not influence or decide on claims payouts. Meanwhile, the policyholder is the one who files the claim but does not adjudicate the compensation amount. Thus, the court system or jury is the appropriate entity for making this critical determination in liability cases.