Selskapet skal erstatte tapet.

Because Norwegian often adds the definite article to the end of the noun instead of using a separate word like the.

• selskap = company

• selskapet = the company

• tap = loss
• tapet = the loss

For neuter nouns like these, the definite ending is usually -et.

Skal is a modal verb. In this sentence, it usually means something like:

• will
• is going to
• is to
• sometimes must / is supposed to, depending on context

So skal does not always mean simple future in the same way English will does. It can also suggest obligation, intention, or an agreed plan.

Because after a modal verb like skal, Norwegian uses the infinitive without å.

So:

• skal erstatte = will replace / will compensate for

Compare:

• å erstatte = to replace / to compensate for
• Selskapet skal erstatte tapet.

This is similar to English:

• will replace, not will to replace

Because Norwegian normally leaves out å after modal verbs such as:

• skal
• vil
• kan
• må
• bør

So you say:

• skal erstatte
• kan betale
• må vente

not:

• skal å erstatte

Erstatte can mean replace in some contexts, but in sentences about money, damage, insurance, or responsibility, it often means compensate for or cover.

So here it likely means that the company will make up for the loss, usually financially.

That is a very common use in legal, insurance, and business language.

This is the normal main-clause word order in Norwegian:

subject + verb + infinitive/object

So here:

• Selskapet = subject
• skal = finite verb
• erstatte = infinitive
• tapet = object

This is very similar to standard English word order:

• The company will compensate for the loss.

Yes. Tapet can also mean the wallpaper, because tapet is a separate noun meaning wallpaper.

So without context, Selskapet skal erstatte tapet could technically be misunderstood as:

• The company will replace the wallpaper

But if the meaning shown to the learner is the loss, then the noun is from tap = loss, not tapet = wallpaper as a dictionary headword.

This is a good example of how context matters in Norwegian.

Because it comes after the verb phrase and receives the action.

Ask: What will the company compensate for? Answer: tapet

That makes tapet the direct object.

So the structure is:

• Selskapet = the doer
• skal erstatte = the action
• tapet = what is being compensated for

It sounds fairly neutral, but the wording is especially common in formal or professional contexts such as:

• insurance
• contracts
• legal writing
• business communication

In everyday speech, people might sometimes choose a more conversational phrasing depending on the situation, but this sentence is completely natural Norwegian.

In a yes/no question, Norwegian usually puts the finite verb before the subject:

• Skal selskapet erstatte tapet?

That means:

• Will the company compensate for the loss?
• or Is the company going to cover the loss?

This verb-before-subject pattern is very common in Norwegian questions.