Indemnification – that’s a big word, and a lot of people, quite frankly, don’t know what it means. It is a Latin word, and it comes from two parts, “in” and “damnum,” which means damages. It relates to how a person collects damages, and what happens with that. It really means two things. One, Person A can be required to compensate another person for damage or loss, and it also can mean that Person A is actually required to secure Person B against legal responsibility.