Damage caps are a limit on the amount of damages that a victim can recover for their losses. Even if the victim has damages that exceed the limit in a given category, a victim can only recover up to the limit. It’s the Nevada legislature that determined when caps apply and what the limits are.
In theory, the purpose of damage caps is to reduce the costs of litigation in order to lower costs and expenses for all of us. But damage caps are controversial especially for the accident victims who rely on the Nevada legal system for a fair recovery after an injury.