compensation
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compensation
Financial or material compensation for damage, loss, disadvantage, or injustice suffered.
Die Passagiere erhielten für den ausgefallenen Flug eine Entschädigung.
The passengers received compensation for the canceled flight.
The word is derived from 'der Schaden' (damage/loss). The prefix 'ent-' here means 'to remove' or 'to balance out'. So an 'Entschädigung' (compensation) is meant to symbolically or financially 'remove' damage that has been suffered.
Für den Wasserschaden in der Wohnung zahlte die Versicherung eine Entschädigung.
The insurance company paid compensation for the water damage in the apartment.
To name the reason for the compensation, you use the preposition 'für' (for) with the accusative. To name the source of the compensation, you use 'von' (from) with the dative.
Er bekam eine Entschädigung für das verlorene Gepäck.
He received compensation for the lost luggage.
'Entschädigung' (compensation) is often combined with certain verbs. You can 'fordern' (demand), 'beantragen' (apply for), 'erhalten' (receive), or 'bekommen' (get) compensation. A company or person can 'zahlen' (pay) or 'leisten' (provide) compensation.
Die Anwohner fordern eine Entschädigung für den Baulärm.
The residents are demanding compensation for the construction noise.
'Die Entschädigung' (compensation) is a rather formal word that is often used in legal, official, or business contexts. In everyday conversation among friends, people would more likely speak of 'ein Ausgleich' (compensation/balance) or 'eine Wiedergutmachung' (reparation).
Im Vertrag ist genau geregelt, wann ein Anspruch auf Entschädigung besteht.
The contract specifies exactly when there is a claim to compensation.
replacement / compensation
'der Ersatz' and 'die Entschädigung' can both have to do with a loss or damage. 'die Entschädigung' is more specific: you receive money or something material because you have suffered damage, a disadvantage, or an injustice. 'der Ersatz' can also mean compensation, but it can also simply mean a new item in place of the old one. Learners may confuse the words because both occur after damage. When it is about money or official compensation, 'Entschädigung' usually fits better. When a new item is delivered, 'Ersatz' is more natural.
Nach der langen Zugverspätung beantragt sie eine Entschädigung.
After the long train delay, she applies for compensation.
Der Händler schickt mir Ersatz, weil das Glas beim Transport kaputtgegangen ist.
The seller is sending me a replacement because the glass broke during transport.