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In this video tutorial, Michele discusses the term "indemnification." Indemnification arises in various contexts such as contracts, settlements, or business separations. To indemnify means to provide protection or support to another party, essentially "covering their back." This involves taking responsibility for any claims made against them related to the specified circumstances, whether it's regarding a product being sold or another agreement. It's essential to clearly define what the indemnification covers, ensuring both parties understand the scope of responsibility if something goes wrong.