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What Are Compensatory Damages?

Compensatory damages are monetary payments compensating injured victims for financial losses they incurred as the result of an accident. If another party’s negligence is responsible for an accident resulting in injuries, that party’s insurance company may be liable for paying the damages.

If you’ve been injured in an accident caused by another party, In order to recover compensatory damages, a personal injury lawyer may be able to help you prove the other party’s negligence, and ascertain the total financial cost of losses you’ve incurred as a result of the accident they caused.

According to the Ontario Ministry of the Attorney General, there are two main types of compensatory damages: economic and non-economic.

Economic Damages

Economic damages are calculable financial losses that your lawyer may be able to easily quantify, since their value is often documented in an invoice or receipt. Economic damages may include losses you have already incurred or will incur the future as a result of injuries sustained in your accident. Some examples of economic damages may include:

  • Medical expenses
  • Rehabilitation costs
  • Lost wages
  • Loss of future earning capacity
  • Adjusted living costs
  • Property damage
  • And possibly more

To calculate the total amount of economic damages you’ve incurred as a result of your injuries, a lawyer may help you compile all documents related to your recovery. These may include medical bills, invoices for property repair, financial statements, earnings statements, estimated costs for projected expenses, and possibly more. These types of expenses are often the primary form of compensation for your losses.

Non-economic Damages

Non-economic damages, or general damages, are compensatory damages awarded to victims who have sustained severe, catastrophic injuries that have significantly impacted their quality of life. Since these types of damages are often less tangible than economic damages, they could be more difficult to quantify.

Common examples of non-economic damages that may be awarded are listed in the Journal of Air Law and Commerce, and include:

  • Severe physical pain and discomfort
  • Emotional distress or clinical depression
  • Loss of companionship
  • Permanent disfigurement
  • Loss of enjoyment of life
  • Loss of parental support
  • Pain and suffering
  • And more

How a Lawyer May Be Able to Help

Following an accident, injured victims may not be aware of what compensatory damages are available to them, or what their case could be worth. Some victims may also decide to accept the first settlement offer provided by an insurance company without first consulting with a lawyer.

However, with the assistance of a personal injury lawyer, an injured victim may be able to determine the full cost of the damages they incurred as the result of their accident. If the injured party is entitled to receive more than the insurance company’s initial offer, a lawyer may be able to negotiate a new settlement on their behalf. If eligible for additional damages, a lawyer may also be able to represent their case in court.

What to Do After an Accident

After you’ve been involved in an accident, even if you don’t believe you’ve sustained serious injuries, seeking immediate medical attention may be crucial. The symptoms of shock following an accident may delay or diminish the pain of injuries you’ve sustained. An emergency medical assessment could provide you with an accurate diagnosis, recommend a treatment plan to avoid any complications in the recovery process, and supply you with documentation that may prove useful when pursuing future legal actions.

Properly documenting your case by taking photos of the accident scene, speaking with eyewitnesses, and diligently filing all documents related to the accident may help your personal injury lawyer build a case expediently and thoroughly.

Call Preszler Injury Lawyers Today

If you’ve been injured as the result of an accident caused by another party’s negligence, you may be eligible to recover damages. To see if you’re eligible to pursue financial compensation, call Preszler Injury Lawyers at 1-800-JUSTICE for a free, initial case evaluation.

Call us now at

151 Eglinton Ave W,
Toronto, ON
M4R 1A6
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
4145 N Service Rd
Burlington, ON
L7L 4X6
Fax: 1-855-364-7027
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2 County Ct Blvd #400,
Brampton, ON
L6W 3W8
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105 Consumers Drive
Whitby, ON
L1N 1C4
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92 Caplan Ave #121,
Barrie, ON
L4N 0Z7
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
380 Wellington St Tower B, 6th Floor,
London, ON
N6A 5B5
Toll Free: 1-888-608-2111
2233 Argentia Rd Suite 302,
East Tower Mississauga, ON
L5N 6A6
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1 Hunter St E,
Hamilton, ON
L8N 3W1
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
459 George St N,
Peterborough, ON
K9H 3R9
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22 Frederick Street,
Suite 700
Kitchener, ON N2H 6M6
Fax: 1-855-364-7027
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116 Lisgar Street, Suite 300
Ottawa ON
K2P 0C2
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10 Milner Business Ct #300,
Scarborough, ON
M1B 3C6
Toll Free: 1-888-608-2111
*consultation offices

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