Punitive damages are a type of compensation awarded in legal cases, primarily intended to punish the wrongdoer for particularly harmful behavior. Unlike compensatory damages, which aim to reimburse the victim for actual losses, punitive damages serve to deter similar conduct in the future by imposing a financial penalty on the offender. These damages are typically awarded in cases involving gross negligence, intentional misconduct, or actions that show a blatant disregard for the rights of others. Courts consider factors such as the severity of the wrongdoing and the financial status of the defendant when determining the amount of punitive damages.