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In this tutorial, Michele explains the term "indemnification," which is often encountered in contracts, settlements, or business separations. To indemnify someone means to "cover their back," meaning you take responsibility for protecting them against claims that arise from specific circumstances, such as a product being sold. It's crucial to clearly define what is being indemnified against, particularly in situations where something could go wrong. Understanding indemnification helps clarify responsibilities in various transactions and agreements.