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In this tutorial, Kevin O'Flaherty from O'Flaherty Law explains indemnification clauses, which can be standalone agreements or part of larger contracts used to transfer liability risk between parties. By agreeing to indemnify someone, you commit to reimbursing them for monetary losses caused by your actions or those of your agents. This is often applied in independent contractor agreements, where the contractor agrees to indemnify the business against lawsuits resulting from their work, thereby protecting the business from potential liability.