reimbursable expenses
Definition
Reimbursable expenses are costs you pay out of your own pocket that someone else has agreed to pay you back for later. This typically comes up in contracts where a client promises to cover certain business costs you incur while doing work for them, like travel, materials, or equipment rentals.
Example
You hire a freelance photographer for a client project and pay $500 for their travel costs upfront, but your contract with the client says they will reimburse you for those travel expenses.
Watch Out
Always get specific written agreement on which expenses qualify for reimbursement before you start spending money, because verbal promises are very hard to enforce later.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.