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In this video tutorial, Michele explains the term "indemnification," which often arises in contracts, settlements, and business separations. To indemnify someone means to cover their back by assuming responsibility for any claims made against them in relation to a specified circumstance, such as a product being sold. Michele emphasizes the importance of clearly defining what the indemnification covers, ensuring all parties understand the circumstances under which indemnity applies, particularly if something goes wrong. This concept is crucial in protecting parties involved in various agreements.
