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compensatory damages


compensatory damages, defined:

an award for damages, awarded to compensate a damaged party in an amount equivalent to the loss. The intent of compensatory damages is to “make whole” or place the injured party in the same position that he or she was before being damaged.

compensatory damages, as it might be used:

The policy is legally obligated to pay compensatory damages for any claim made against the insured during the policy period.
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