Which of the following best describes compensatory damages?

Compensatory damages are designed to make the injured party whole again by covering both tangible and intangible losses resulting from the tort. This means they can account for measurable expenses, such as medical bills and property damage, as well as non-economic factors like lost wages, pain and suffering, and emotional distress. The goal is to restore the plaintiff to the position they would have been in had the tort not occurred.

The other options do not accurately capture the essence of compensatory damages. For instance, punitive damages are the form of damages intended solely for punishment, which is distinct from compensatory damages that focus on restitution. Additionally, compensatory damages are not limited to situations involving intentional torts; they apply to various types of torts, including negligence. Lastly, while pain and suffering can be a component of compensatory damages, it does not encompass all that compensatory damages cover, as they include multiple forms of loss beyond just subjective experiences. Thus, the most comprehensive description of compensatory damages is that they address both tangible and intangible losses.