What is the primary purpose of compensatory damages?

Compensatory damages are specifically designed to restore the injured party to the position they were in before the harm occurred. The primary purpose is to compensate the plaintiff for actual losses sustained due to the defendant's conduct. This can include medical expenses, lost wages, property damage, and pain and suffering, reflecting the real financial impact the injury has had on the plaintiff's life.

Other options do not align with the main intent of compensatory damages. For instance, punitive damages are the type that serves to punish the defendant (related to the first option) and deter future misconduct, which is typically not the purpose of compensatory damages. Covering legal costs is generally not included within compensatory damages, as they are aimed at losses from the incident itself rather than the expenses of bringing a lawsuit. Overall, the focus of compensatory damages is on addressing the actual harm suffered by the plaintiff, making that choice the most accurate representation of their primary purpose.