Which type of damages compensates an injured party for tangible costs experienced due to an injury?

Compensatory damages are designed to reimburse an injured party for tangible costs that they have incurred as a result of an injury. This type of damage covers various expenses, including medical bills, lost wages, and property damage. The primary goal of compensatory damages is to make the injured party "whole" again by ensuring they receive financial restitution equivalent to the actual losses suffered.

Tangible costs refer to out-of-pocket expenses that can be concretely quantified, making compensatory damages a fundamental aspect of personal injury claims. Unlike punitive damages, which are intended to punish wrongdoing and deter future misconduct, compensatory damages focus purely on the financial recovery for the injured party. Nominal damages provide a symbolic recognition of harm when no substantial loss is proven, and liquidated damages are predetermined amounts specified in a contract for certain breaches. Thus, compensatory damages explicitly address the real financial impact of injuries.