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In this tutorial, Michele explains the term "indemnification." She highlights that indemnification often arises in the context of signing contracts, making settlements, separating in business, or selling and purchasing products. To indemnify someone means to "cover their back," implying a responsibility to protect them from claims made against them related to a specified circumstance or product. Michele emphasizes the importance of clearly defining what you are indemnifying against, particularly in cases where things could go wrong. Understanding this term is crucial for ensuring responsible agreements and protections in various transactions.