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In this tutorial, Michele discusses the term "indemnification," which is often encountered in contracts, settlements, or business separations. To indemnify someone means to protect them from claims or liabilities related to a transaction or circumstance. Essentially, it involves covering for the other party if issues arise. Michele emphasizes the importance of clearly defining what one is indemnifying against, such as potential problems that may occur in relation to a product or service being sold. Understanding this term is essential for anyone dealing with agreements that involve shared responsibilities or risks.