What type of damages aims to make the injured party "whole" after a loss?

Compensatory damages are specifically designed to restore the injured party to the position they were in prior to the loss or injury. This type of damages covers both economic losses, such as medical expenses and lost wages, and non-economic losses, such as pain and suffering. The fundamental goal is to provide a monetary equivalent for the losses suffered, thereby making the injured party "whole" again.

By contrast, punitive damages are intended to punish a wrongdoer and deter future misconduct rather than to compensate the injured party. General damages are a subset of compensatory damages that refer to non-economic losses, while special damages refer to specific, quantifiable financial losses. Thus, the distinction lies in the purpose of the damages, where compensatory damages focus on reparation rather than punishment or broader categories of loss.