Did your dog eat your landlord's lawn furniture? Did your loud partying make your neighbors move out? You may find yourself paying an indemnification, meaning compensation for damages or distress.
More often than not, an indemnification is usually arranged up-front as a form of insurance against bad things that might happen. For example, a film crew might agree to indemnification before being allowed to film in a particular location. Indemnification has the general sense of being a preventative action, something that protects against any future losses.