Punitive damages are a type of compensation awarded in legal cases, primarily aimed at punishing the wrongdoer rather than just compensating the victim. They are typically granted in cases of severe misconduct, such as fraud, malice, or gross negligence, and serve as a deterrent to prevent similar behavior in the future. Unlike compensatory damages, which cover actual losses like medical expenses or lost wages, punitive damages are intended to send a message about the seriousness of the offense. The amount awarded can vary significantly, depending on the severity of the actions and the jurisdiction's laws regarding damages.