What term refers to the risk of being sued for negligence or malpractice?

The term that best describes the risk of being sued for negligence or malpractice is legal loss. This concept encompasses the potential financial and reputational damages that can arise from legal actions taken against an individual or organization due to perceived failure to meet a standard of care.

In the context of risk management, legal loss considers both actual damages awarded in lawsuits and the associated costs of legal defense. An organization could face legal losses if they do not adhere to regulations, industry standards, or if they fail to provide adequate care or service, leading to claims of negligence or malpractice.

Other options do not specifically capture this concept: pure risk refers to risks that involve only the possibility of loss without any opportunity for gain, consequential loss refers to indirect damages that arise as a result of a primary loss, and particular risk pertains to specific instances rather than a broader category like legal action. Thus, legal loss is the term that directly aligns with the risk of lawsuits due to negligence or malpractice.