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In this tutorial, Michele discusses the term "indemnification," which is often encountered in contracts, settlements, or business separations. To indemnify someone means to take responsibility for protecting them against claims related to a specific circumstance, such as the sale of a product. Michele emphasizes the importance of clearly defining what exactly is being indemnified, particularly in cases where something may go wrong. Understanding indemnification is crucial to ensure that all parties involved are aware of their responsibilities and protections in any agreement.