Which term is used to describe the act of protecting against loss or liability?

Indemnification is the term used to describe the act of protecting against loss or liability. In legal contexts, it refers to an agreement where one party compensates another for losses or damages that may occur. This protection can apply in various scenarios, such as in contracts, insurance policies, and financial agreements where one party agrees to cover the potential costs incurred by another.

Understanding indemnification is crucial for professionals in fields related to law and finance, as it plays a significant role in risk management and liability coverage. For instance, a bail agent might seek indemnification from a client to ensure that they are financially protected if the client fails to appear in court, which could result in a financial loss for the agent.

The other terms do not pertain to protection against loss or liability. A hearing refers to a legal proceeding where evidence and arguments are presented, an indictment is a formal charge or accusation of a crime, and incarceration refers to the state of being confined in prison. Thus, indemnification is clearly the correct answer in the context of financial and legal protection.