In some cases I agree. But in others, not so much.
Let’s look at a theoretical case – big pharma releases a medication without proper testing, using their political clout to push it through government approvals. Then it causes damage to its users, and they get sued.
If they are limited in how much they have to pay out, it won’t matter to them. Their profits will far outweigh the payouts. They need to be held accountable through punitive damages, otherwise it’s a simple cost/benefit analysis that tells them to continue pushing out bad products.
Tobacco companies would have the same issue. They’d abandon the warnings on the labels, and start advertising like crazy again, because they won’t be held accountable as they should be.
Soo for small businesses, yes, there should be some type of limits. Maybe limit when there isn’t gross negligence? That might be a better option.