Legal expenses refer to any and all liabilities, obligations, losses, damages, penalties, fines, claims (fraudulent, unfounded, false or not), lawsuits, lawsuits, lawsuits, lawsuits, judgments, legal proceedings (whether civil or criminal), investigations, costs, disbursements and expenses (including legal fees and. The amount a lawyer charges you for legal services may include the attorney's fees plus additional expenses and costs. If the lawyer represents you in a court proceeding, you may have to pay a filing fee or other court costs, for example. In general, professional fees should be classified as operating expenses in the company's income statement.
However, there may be some cases where professional fees are classified as other expenses, such as certain legal fees that are considered one-time charges. Business legal expense insurance (CLEI) is a similar type of legal expense insurance aimed at small and medium-sized businesses. If the consulting company's liability insurance doesn't cover legal expenses, the company may consider purchasing legal expense insurance.