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In this tutorial, Michele discusses the term "indemnification." She explains that indemnification often arises in contexts such as contracts, settlements, business separations, or sales transactions. To indemnify someone means to cover their back or take responsibility for any claims made against them related to a specific circumstance or product. Michele emphasizes the importance of clearly understanding what you are indemnifying against, particularly in cases where something may go wrong. The key takeaway is the need for clarity in the indemnification process to ensure all parties are aware of their responsibilities.