For example, if an athlete promotes a product that later faces lawsuits (e.g., a supplement that turns out to be unsafe), this clause determines who is responsible for any legal or financial issues

Example Contract Language: 
Indemnification:

a) Company agrees to be solely responsible for, defend, hold harmless and indemnify Athlete from and against third party claims, demands, suits, losses, damages, and expenses thereof (including reasonable attorney’s fees) resulting from this Agreement, including: (i) Company's negligent acts or omissions; (ii) a material breach of this Agreement by Company; (iii) any Company’s advertising, promotion or publicity proven to utilize false, misleading or deceptive advertising, or any unpermitted usage of Athlete’s NIL; and (v) any violation of applicable law, rule or regulation by Company in performing its obligations hereunder. This means that the company will pay for the athlete’s legal fees if the athlete is sued for promoting a company’s product or brand.

(b) Athlete agrees to defend, hold harmless and indemnify Company, from and against any third party claims, demands, suits, losses , damages, and expenses thereof (including reasonable attorney’s fees) arising out of, or in any way connected to: (i) any negligent actions or omissions of Athlete in the performance of the services under this Agreement; and (ii) any material breach of this Agreement by the Athlete.

This means that if the company gets sued for something related to the athlete’s promotion of their brand, then the athlete will pay for any legal fees incurred by the company in defending the lawsuit. For example: If an athlete wrongfully claims that a caffeinated product is safe in large doses and a customer suffers a heart attack and sues the company, then the athlete likely would have to pay the company for their legal costs.

Scroll to highlighted section for example within a contract.