Compensatory damages are awarded to:

Compensatory damages are specifically designed to cover the actual losses sustained by the injured party. This type of damage is awarded to compensate for the economic and non-economic harm that a person experiences due to someone else’s actions. The aim is to restore the injured party to the financial position they would have been in had the injury not occurred.

This includes direct costs such as medical expenses, lost wages, and property damage, as well as indirect costs like emotional distress or loss of companionship. The key focus is on making the injured party whole rather than punishing the wrongdoer or addressing non-economic aspects like pain and suffering in isolation. While compensation for pain and suffering can be a component of compensatory damages, the primary purpose of these damages is the restitution of the injured party's actual losses.