What is the difference between compensation and damages in an accident claim?

Compensation and damages are both forms of reimbursement a person may be entitled to when filing an accident claim in Colorado. However, the two terms are not interchangeable, as they refer to different types of reimbursement. Compensation is the amount of money a person is owed from another party due to an injury or loss caused by their fault. This typically includes out-of-pocket expenses, such as medical bills and lost wages, that resulted from the incident. Damages, on the other hand, are amounts of money that are awarded to a person to make up for the emotional toll, mental anguish, or physical suffering caused by the incident. This may include pain, suffering, and emotional distress, or loss of enjoyment of life. Damages are normally awarded as a way to make up for the non-economic losses the injury or loss has caused a person. Both compensation and damages are awarded in Colorado to make up for the losses a person has suffered as a result of another person’s negligence. Compensation is meant to cover a person’s medical and financial losses, while damages are meant to make up for the emotional, mental, and physical suffering caused by the incident.

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What is the difference between compensation and damages in an accident claim?

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