UK Accounting Glossary
Failure to exhibit care that one ought to exhibit.
In Law, a tort in which a breach of a duty of care results in damages to the person to whom the duty is owed. Such a duty is owed by manufacturers to the consumers who buy their products, by accountants, doctors, solicitors, care workers, doctors, and other professional persons to their clients, by a company director to it’s shareholders/stakeholders. etc.
A person who has suffered loss or injury as a result of a breach in the duty of care can claim damages in tort.
The risk of potentially being sued for negligence makes it paramount for partners in accountancy firms that are not limited liability partnerships to obtain professional indemnity insurance.