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In this video, Michele discusses the term "indemnification," which often arises in contexts such as contracts, settlements, or business separations. To indemnify someone means to "cover their back," taking responsibility for any claims made against them concerning a specific circumstance or product. It is essential to clearly understand what the indemnification covers, especially in situations where something may go wrong, ensuring that the responsibilities and risks are well defined. This concept ensures that the indemnifying party is prepared to manage any potential claims that may arise.