Which of the following statements about compensatory damages is true?

Compensatory damages are intended to make a plaintiff whole again by covering the losses they have suffered due to the actions of another. This type of damage encompasses both tangible losses, such as medical expenses, lost wages, and property damage, as well as intangible losses, including emotional distress, pain and suffering, and loss of enjoyment of life. By including both types of losses, compensatory damages provide a more comprehensive form of restitution for the plaintiff, ensuring that they are compensated for the full spectrum of their damages. This multifaceted approach reflects the court's recognition of the various ways in which harm can affect an individual's life, making option B the true statement regarding compensatory damages.

The other options are limited in scope or fundamentally misinterpret the nature of compensatory damages. Economic losses alone do not account for the emotional and psychological impacts of an incident, punishment of the wrongdoer pertains to punitive damages rather than compensatory ones, and emotional distress alone does not capture the full range of compensatory damages available in a claim.