Which category of damages includes both general and special damages under liability coverages?

Compensatory damages is the correct choice because it refers to damages awarded in a lawsuit that are intended to compensate the injured party for their losses. This category encompasses both general damages, which cover non-economic harms such as pain and suffering, emotional distress, and loss of companionship, and special damages, which are quantifiable monetary losses such as medical expenses, lost wages, and property damage.

Understanding the distinction between these types of damages is essential for adjusters, as it directly impacts the evaluation of claims under liability coverages. General damages address subjective experiences that are harder to quantify, while special damages provide a clear, monetary value for specific losses incurred due to the incident in question. This comprehensive approach in compensatory damages ensures that the injured party is made whole to the extent possible.