to compensate
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to compensate for
To provide someone with compensation for damage, loss, or disadvantage they have suffered, usually in the form of money.
Die Fluggesellschaft musste die Passagiere für die massive Verspätung entschädigen.
The airline had to compensate the passengers for the massive delay.
The verb is derived from the noun 'der Schaden' (damage). The prefix 'ent-' here means 'to take away' or 'to remove'. So 'entschädigen' (to compensate) literally means to 'take away' someone's damage by creating compensation.
Die Versicherung wird den Schaden am Auto vollständig entschädigen.
The insurance company will fully compensate the damage to the car.
The prefix 'ent-' is inseparable. It remains firmly attached to the verb stem in all conjugated forms and sentence types.
Er entschädigte seine Nachbarn für den Lärm.
He compensated his neighbors for the noise.
The structure is fixed: you compensate someone (accusative) FOR something (accusative). The preposition 'für' (for) introduces the reason for the compensation.
Das Unternehmen entschädigte die Kunden für die fehlerhafte Ware.
The company compensated the customers for the faulty goods.
The reflexive form 'sich entschädigen' (to compensate oneself) means that you reward yourself for an effort or a sacrifice. The reflexive pronoun is in the accusative.
Nach der harten Arbeit entschädigte sie sich mit einem guten Essen.
After the hard work, she compensated herself with a good meal.
to replace / reimburse
'ersetzen' and 'entschädigen' can both describe compensation for damage or loss. 'ersetzen' puts more emphasis on making up for a concrete damage, loss, or expense, often with money or with a new item. 'entschädigen' puts stronger emphasis on the affected person: someone receives compensation because they have suffered damage or a disadvantage. The words can be confused because both often occur in situations involving money and damage. In practical terms: you 'ersetzt' damage or a broken item, but you 'entschädigt' a person for the damage.
Die Fluggesellschaft hat die Reisenden für die lange Verspätung entschädigt.
The airline compensated the travelers for the long delay.
Der Nachbar ersetzt die zerbrochene Fensterscheibe.
The neighbor replaces the broken windowpane.