The short answer
Punitive damages punish especially wrongful conduct and deter others. In Illinois they require conduct such as fraud, actual malice, or willful and wanton behavior, and they are generally unavailable for breach of contract.
Where it fits in your case
Usually added after the case is underway, not in the original complaint.
What to expect
Leave of court. In many cases, a plaintiff must ask the court’s permission to add a punitive damages claim (735 ILCS 5/2-604.1).
Business torts such as fraud can support punitive damages.
Insurance. Punitive damages for one’s own misconduct may not be insurable.
Constitutional limits restrict awards grossly out of proportion to actual damages.
What we need from you
Evidence showing intent or reckless disregard, not just a mistake.
Common misconceptions
“An outrageous breach gets punitive damages.” Not in contract claims.
“Punitive damages are common.” They are reserved for egregious cases.