What does Compensatory Damages mean? Read on to discover the definition & meaning of the term Compensatory Damages - to help you better understand the language used in insurance policies.
Compensatory damages refer to the sum of money the at-fault party must pay an injured party as compensation for causing some sort of injury or loss. They are awarded in civil suits wherein the negligence or wrongful conduct of one party causes another's loss. In the context of insurance, it is often insurance companies who actually pay the compensatory damages.
We hope the you have a better understanding of the meaning of Compensatory Damages.