Liability or legal expense
(i) Liability or legal expense means: (1) Any legal or other professional fees and expenses incurred in connection with any claim, proceeding, or action; (2) The amount of, and any cost incurred in connection with, any settlement of any claim, proceeding, or action; and (3) The amount of, and any cost incurred in connection with, any judgment or penalty imposed with respect to any claim, proceeding, or action.