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In this segment of "Finally Revealed," Michele discusses the term "indemnification." She explains that indemnification typically arises in situations such as signing contracts, making settlements, or separating from a business partnership. To indemnify someone means to "cover their back," implying a responsibility to protect them from claims arising from specific circumstances, such as the sale of a product. Michele emphasizes that it's important to clearly define the basis for indemnification, specifying what is being covered in case something goes wrong.