What type of damages is intended to compensate a plaintiff for losses incurred?

Compensatory damages are specifically designed to reimburse a plaintiff for the actual losses they have incurred as a result of another party's wrongful act. This type of damage award aims to restore the injured party to the position they would have been in had the harm not occurred. Compensatory damages can cover various forms of loss, including medical expenses, lost wages, property damage, and pain and suffering. The fundamental principle behind compensatory damages is that it provides a financial remedy that relates directly to the damages suffered by the plaintiff. This distinction is vital in understanding tort law, as it underscores the focus on making the injured party whole rather than punishing the offending party.