What does “compensation” mean in an injury claim or lawsuit?

The main purpose of a lawsuit is to receive money compensation for the harm that you or a family member has suffered as the result of somebody else’s misconduct. Part of this harm is  lost wages and medical expenses – both those you’ve already incurred and those likely to happen even after your claim is settled or your lawsuit is tried in court. These costs are called economic damages.

Defining “Compensation” in a Legal Context

Another element of harm from injuries is loss of quality of life, called non-economic damages. Of course, there is no amount that restores one’s life  to exactly how it was before suffering a serious injury. Compensation for “pain and suffering” is intended to help make your life comparable, though not identical, to how you lived before the harm was done.