Your Personal Injury Guide: What Are Compensatory Damages?

It doesn’t matter whether you’re a casual internet reader, a lawyer, or any other person who’s researching personal injury. There’s one term that you will run into at some point and that’s “compensatory damages.”

While this term might seem to be obscure and complicated, it’s actually very straightforward and simple. In this article, we’ll tell you what are compensatory damages and how they apply to your personal injury case.

Are you interested in learning more about personal injuries and the different types of damages that you can get through these cases?

What Are Compensatory Damages, Exactly?

In simple terms, compensatory damages are financial compensation awarded to an injured person to make up for the losses they have suffered.

These can include both economic losses, such as income loss damages, and medical expenses, and noneconomic losses, such as pain and suffering or loss of enjoyment of life.

Its Purpose

The purpose of it is to make the injured person whole again, as much as possible. They are intended to restore the victim to the position they would have been in if the accident or injury had not happened.

If you have been injured in an accident, it is important to seek legal advice to ensure you are able to claim the compensatory damages you are entitled to. An experienced personal injury lawyer will be able to assess your case and advise you on the best course of action.

Different Types of Damages

There are many different types of damages that can be awarded in a personal injury lawsuit. The different types of damage are Compensatory, Punitive, and Emotional.


So, what are compensatory damages exactly? Compensatory damages are the most common type of personal injury damages.

They are awarded to reimburse the injured person for actual losses, such as medical expenses, lost wages, and property damage. These damages may also be awarded for intangible losses, such as pain and suffering, emotional distress, and loss of enjoyment of life.


Punitive damages are awarded as a way to punish the at-fault party for their negligence or recklessness. Those damages are not available in every state and are often capped at a certain amount.


In some cases, workers’ compensation may also provide benefits for emotional damage. This can include things like PTSD, anxiety, and depression.

The number of benefits you may receive will vary depending on the severity of your condition and how it’s impacting your ability to work.

How Are Compensatory Damages Calculated?

Compensatory damages are calculated by addressing both economic and noneconomic losses. Economic losses are calculated by looking at past and future medical bills, lost wages and lost earning capacity.

Noneconomic losses, such as pain and suffering, are more difficult to quantify. In some states, there is a cap, or limit, on the amount of non-economic damages that can be awarded.

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Be More Familiar With What Compensatory Damages Are

After reading this guide, you should have a better understanding of what are compensatory damages and how they might apply to your personal injury case.

If you believe you may be entitled to damages, don’t hesitate to reach out to a qualified personal injury attorney in your area for more information and to discuss your options.

Make sure you’re aware of every legal method you could use to increase the amount you get. For more tips, take a look at our other blog posts!

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