There are multiple definitions - click on the translation that matches your context.

Freistellung means:

Freistellung

Substantiv

full

indemnification

noun

Comparative law notes

Law of obligations context.

Unless the parties have negotiated their Freistellung arrangement differently, the German language uses the word "Freistellung", to typically cover the "obligation to indemnify" and an "obligation to defend". That means that the party protected by such clause not only has a right to be protected against third party claims, but also has the right to request that the Seller assume the costs of his legal defense.

Definitions of indemnification

a security or protection against a financial loss; the granting of a security or protection against a financial loss

The council will also consider an indemnification agreement with Lakeside Capital Group.

the action of compensating someone for loss suffered to restore them to the financial position they were in before the loss happened

The general contractor had signed a contract including indemnification against all damages for personal injuries "caused by ... or occurring in connection with the work."

the exclusion of someone from legal responsibility for their actions concerning a particular matter

The new contract included an indemnification clause that obliges Springs Industries to defend the city in lawsuits arising from environmental contamination.