Which statement is true about compensatory damages?

Compensatory damages are intended to financially compensate an individual or entity for losses suffered due to the wrongful actions of another party. The statement that they may include both general and special damages is true because compensatory damages can encompass a range of economic and non-economic losses.

General damages refer to non-monetary aspects, such as pain and suffering, emotional distress, or loss of companionship, which are not easily quantifiable. Special damages, on the other hand, include quantifiable monetary losses such as medical expenses, lost wages, or property damage, which can be documented and calculated. Together, these types of damages aim to restore the injured party to the position they would have been in had the harm not occurred.

The other statements do not accurately reflect the nature of compensatory damages. They are not limited to future losses; they can be awarded for past or present losses as well. Compensatory damages are not restricted exclusively to physical injuries; they can also apply to property damage and emotional distress. Lastly, businesses can claim compensatory damages, but they are not the only entities eligible; individuals can seek these damages as well.