malpractice insurance

Liability insurance for the accountant against legal action in connection with professional services rendered. Insurance coverage varies but may include attorney fees and awarded damages. The accounting practitioner may be sued by clients and third parties (i.e., creditors, investors) relying on his or her work. The increasing cost of obtaining malpractice insurance is a problem of both accounting and other professions.

In dentistry, insurance covering accidents or catastrophes that may occur during the performance of professional duties.