naknaditi

1. to make up for
   Moraćemo da naknadimo izgubljeno vreme. — We'll have to make up for lost time.
   Trudom je naknadio nedostatak iskustva. — He made up for his lack of experience with hard work.
2. (of damage, costs) to compensate; to reimburse
   Osiguranje će vam naknaditi štetu. — The insurance will compensate you for the damage.

In everyday speech nadoknaditi is more common.