The Collaborative International Dictionary of English v.0.48:

Indemnification \In*dem`ni*fi*ca"tion\, n.
   1. The act or process of indemnifying, preserving, or
      securing against loss, damage, or penalty; reimbursement
      of loss, damage, or penalty; the state of being
      indemnified.
      [1913 Webster]

            Indemnification is capable of some estimate; dignity
            has no standard.                      --Burke.
      [1913 Webster]

   2. That which indemnifies.
      [1913 Webster]

            No reward with the name of an indemnification. --De
                                                  Quincey.
      [1913 Webster]

WordNet (r) 3.0 (2006):

indemnification
    n 1: a sum of money paid in compensation for loss or injury
         [syn: damages, amends, indemnity, indemnification,
         restitution, redress]
    2: an act of compensation for actual loss or damage or for
       trouble and annoyance