The most common and most likely answer to this crossword clue is the 8 letter word INJURIES
I've seen this crossword clue in The Guardian
I
N
J
U
R
I
E
S
More clues leading to the result INJURIES
Buddy explains!

The straight part
We know that "damages" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case damages = injuries.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does INJURIES mean?
INJURIES noun- Damage to the body of a human or animal.
- The violation of a person's reputation, rights, property, or interests.
- Injustice.