Compensatory damages refers to an amount of money that is paid or awarded to an individual for a loss. Compensatory damages only cover a real monetary loss and not punitive damages such as pain and suffering, etc. The individual seeking compensatory damages must prove the actual amount lost because of an incident or trangsression. For instance, if a woman sustained injuries to her leg rendering her unable to work and creating medical bills - the woman must prove the amount of money lost because of her inability to work and must also prove the amount she owes for medical bills associated with the incident. Other damages, such as pain and suffering, etc must be covered under punitive damages and not compensatory damages.