What is the main purpose of compensatory damages?

Compensatory damages are specifically designed to reimburse the injured party for their actual losses. The main goal of these damages is to restore the injured party to the position they were in prior to the incident that caused the loss. This includes covering medical expenses, lost wages, property damage, and any other economic harms incurred due to the wrongdoing. Unlike punitive damages, which aim to punish the offender and deter future misconduct, compensatory damages focus solely on the impacted individual's losses, ensuring they receive financial support for the harms they suffered. This principle is a foundational aspect of personal injury law, emphasizing fairness and restoration rather than punishment.