What is the "economic loss rule" in tort law?

The economic loss rule is a legal doctrine that generally limits a plaintiff's ability to recover purely economic damages in tort cases unless there is accompanying physical harm or property damage. This means that if a defendant's actions cause only financial loss without any associated physical injury to a person or damage to property, the plaintiff typically cannot recover those economic losses under tort law principles.

Option B correctly identifies this aspect of the economic loss rule by stating that it limits recovery of damages to instances involving physical harm. The intent behind this rule is to distinguish between tort claims and contract claims, ensuring that parties do not seek recovery in tort for purely economic losses that arise from contractual relationships, where remedies are traditionally sought through contract law.

In contrast, while some other answer choices may touch upon aspects of damages in tort law, they do not accurately reflect the core principle of the economic loss rule. For instance, the first option proposes that economic damages can be recovered without physical injury, which runs counter to the purpose of the economic loss rule. The third and fourth options divert to emotional distress claims and punitive damages, respectively, which are separate concepts and do not pertain directly to the economic loss rule.