Damages awarded by court to cover the plaintiff's actual losses are called?

Prepare for the Hospital Security Exam with our engaging quiz! Study using flashcards and multiple choice questions, complete with hints and explanations. Get ready for success!

Compensatory damages are designed to restore the plaintiff to the position they would have been in if the harm hadn’t occurred by covering actual losses. This includes economic losses like medical bills, therapy, and lost wages, as well as non-economic harms such as pain and suffering (where permitted by law). In contrast, punitive damages punish particularly egregious conduct to deter others; nominal damages are a token award when a rights violation is proven but no actual loss is shown; and liquidated damages are a pre-agreed sum set in a contract to be paid if a breach happens, not necessarily tied to actual losses. For example, if someone is injured and incurs medical expenses and lost wages, compensatory damages would cover those amounts and related harms.