What type of losses does special damages cover?

Special damages are designed to provide compensation for losses that can be quantified and measured. This includes tangible losses, which are those that can be directly calculated and documented, such as medical expenses, lost wages, and property damage. Additionally, special damages can also cover certain intangible losses, although these are typically assessed in a more tangible way, such as loss of enjoyment of life or costs associated with emotional distress that can be substantiated with evidence.

The correct option illustrates that special damages encompass both types of losses, allowing claimants to seek compensation for measurable financial hardships along with certain recognized intangible impacts, as long as they can be quantified. This comprehensive coverage ensures that those affected by a loss can adequately recover not just from clearly defined losses but also from impacts that, while not material in nature, still have significant implications on their quality of life and financial security.