In Insurance 101 – Property – Casualty Basics, the American Insurance Association writes on liability claim costs:
Liability claim costs generally are broken down into two categories: 1) special damages, which include the claimant’s out-of-pocket expenses and lost wages; and, 2) general damages, which cover compensation for pain and suffering (often called non-economic damages). The claim representative/adjuster has the responsibility to offer a fair settlement to the injured party (whether first- or third-party), but can offer only up to the dollar limits of the policy. Once the claimant and company agree on the amount of loss, the company pays that amount (less the amount of a deductible in first-party claims). If there is disagreement over the claim, the matter may go to arbitration, mediation, or court for resolution.
Liability insurance expert witnesses may write reports and opine on insurance claims, damages, and other insurance matters.