Also means
indemnity
Usage Note
Compensación covers financial compensation (wages, damages) as well as psychological compensation — making up for a shortcoming in one area by excelling in another. The verb is compensar ('to compensate, to make up for'). In labour law you will encounter compensación por despido ('severance pay').
Examples
"Recibió una compensación por los daños."
Natural Translation
She received compensation for the damages.
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