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In this video, Michele from "Finally Revealed" discusses the term "indemnification." She explains that indemnification often arises in contexts like contracts, settlements, or business separations. To indemnify someone means to cover their back, implying you will take responsibility for any claims made against them related to a specific situation or product. Michele emphasizes the importance of clearly understanding what you are indemnifying against, especially if something goes wrong. This concept is crucial when entering agreements where potential liabilities or risks are involved.