Colorado Property & Casualty Practice Exam 2026 - Free Property & Casualty Practice Questions and Study Guide

Compensatory damages are designed to reimburse an individual for losses suffered due to the actions of another party. They are classified into two main categories: special damages and general damages.

Special damages refer to specific, quantifiable losses such as medical expenses, lost wages, and property damage. These are easily calculable and can be substantiated with documentation, making them straightforward to assess and award.

General damages, on the other hand, are more subjective and cover non-economic losses such as pain and suffering, emotional distress, and loss of enjoyment of life. These damages are not tied to a specific monetary amount but rather to the impact that the injury has had on the individual's life.

Together, these two forms of compensatory damages aim to restore the injured party to the position they were in before the injury occurred, addressing both tangible and intangible losses they incurred as a result of the defendant's actions. Thus, the classification of compensatory damages into special and general is crucial for understanding how damages are awarded in legal cases.