Compensatory damages are financial awards designed to reimburse a victim for the losses they have suffered as a result of another party’s negligence or wrongdoing. These damages are intended to make the injured party “whole” by addressing both measurable financial losses and more subjective, personal harms caused by the injury.
These damages cover tangible, quantifiable financial losses, including:
These damages address the intangible effects of an injury, such as:
Compensatory damages are essential because they provide financial relief to victims who have suffered due to someone else’s actions. These damages help cover immediate expenses like medical bills and lost wages, as well as future costs that may arise from ongoing treatment or diminished earning capacity. By addressing non-economic harms, compensatory damages also acknowledge the profound emotional and psychological impact of an injury, offering victims a measure of justice for their suffering.
The amount of compensatory damages awarded depends on the severity of the injury, the extent of the victim’s financial losses, and the long-term impact on their quality of life. Courts and insurance companies evaluate evidence such as medical records, expert testimony, and documentation of financial losses to calculate a fair compensation amount.
Victims pursuing a personal injury claim should work with an experienced attorney to ensure all aspects of their damages are thoroughly documented and accurately valued, maximizing their chances of receiving full and fair compensation.
