What are "compensatory damages" designed to cover?

Compensatory damages are intended to provide monetary compensation for the plaintiff's actual losses resulting from the defendant's actions. This includes direct losses such as medical expenses, property damage, and other measurable costs that arise from an injury or harm. Additionally, compensatory damages also cover losses related to pain and suffering, which acknowledges the emotional distress and physical pain experienced by the plaintiff.

These damages aim to restore the injured party, as closely as possible, to the condition they were in before the harm occurred, making them a fundamental aspect of civil liability in tort law. While other types of damages may serve different purposes, such as punitive damages which aim to deter wrongful conduct, compensatory damages focus on addressing the specific losses suffered by the victim.