Punitive damages are awarded in addition to actual damages in certain circumstances. Punitive damages are considered punishment and are typically awarded at the court's discretion when the defendant's behavior is found to be especially harmful. Definition provided by the Legal Information Institute https://www.law.cornell.edu/wex/punitive_damages
Exemplary Damages: Same definition
exemplary damages. n. often called punitive damages, these are damages requested and/or awarded in a lawsuit when the defendant's willful acts were malicious, violent, oppressive, fraudulent, wanton or grossly reckless.
If your E & O policy limits punitive damages or excludes punitive damages then E & O carrier may only pay actual damages due to your professional liability covered actions in failing to place insurance coverage on behalf of your insured.
The carrier would not pay damages assessed in order to punish you for your poor conduct or lack of diligence in placing coverage. Exemplary damages may be awarded to a plaintiff to punish you for wrongful conduct or fraudulent acts.