Which damages cover actual monetary costs such as medical bills and lost wages?

• A. General damages
• B. Compensatory damages
• C. Punitive damages
• D. Treble damages

Answer: (B)

Compensatory damages are the remedy that reimburses a person for actual financial losses. When the harm leads to concrete costs like medical bills and lost wages, compensatory damages are meant to cover those exact expenses, effectively restoring the injured party to the financial position they were in before the injury. These damages include economic (tangible costs such as bills and income) and non-economic components (like pain and suffering), but the example given—medical costs and lost earnings—fits squarely under the economic, verifiable losses that compensatory damages are designed to repay. General damages cover non-monetary harms, punitive damages are meant to punish the wrongdoer, and treble damages are statutory multipliers in specific cases.