HIPAA is Federal legislation, which means that you should thoroughly understand the details and ensure that you’re in compliance. Your dental malpractice insurance does not cover fines and penalties for HIPAA violations, but the insurer does have to abide by them just like you. In addition, Federal audits and enforcement are robust and highly active. Failure to comply with all rules leads to fines and/or penalties that can really add up. However, an audit gives your facility a chance to solve the issues found.