Indemnification is the act of compensating another party for a loss or damage that has already happened, or to use a contract to guarantee to repay them if loss or damage happens in the future. 

For example, a newspaper has an insurance policy to protect it in case it gets sued. With this policy, the insurance company is agreeing to indemnify the newspaper for monetary losses if it gets sued for printing false or misleading information about a person or business.

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