Compensatory damages are a type of monetary award given to a person who has suffered loss or injury due to another party's actions. The purpose of these damages is to restore the injured party to the position they would have been in had the harm not occurred. This can include payments for medical expenses, lost wages, and property damage. These damages are typically divided into two categories: economic damages, which cover tangible losses like bills and lost income, and non-economic damages, which address intangible losses such as pain and suffering. Courts assess the extent of the injury to determine the appropriate amount of compensatory damages.