If an accountant negligently provides advice to a client and that client suffers economic loss as a result, what type of insurance will cover the damages that the accountant will be required to pay?

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Professional indemnity insurance, also known as errors and omissions insurance, is designed to protect professionals (such as accountants) against claims made by their clients for financial loss due to negligent acts, errors, or omissions in performing their professional duties. This type of insurance covers damages that the accountant may be required to pay as a result of providing negligent advice to a client. Public liability insurance covers damages that arise from bodily injury or property damage caused to a third party, and tort insurance is a general term that refers to insurance coverage for various types of civil liabilities. Negligent advice insurance is not a commonly used term and is not typically offered as a standalone policy.

If an Accountant Negligently Provides Advice to a Client and That