Should Lawyers Buy Malpractice Insurance?

As insurance agents we are all required carry insurance agents E&O (professional liability insurance) by industry practice.



Should those attorneys who choose not to carry attorneys’ malpractice (E&O or professional liability) insurance have to disclose this to their clients?



This question is the subject of intense debate right now in California. The State Bar of California has proposed a rule that would require attorneys to disclose to their clients when they do not have malpractice or professional liability insurance (see here).

Supporters claim that such disclosure would provide an incentive for all attorneys to maintain such insurance, and would protect clients. Critics, small law firms and sole practitioners, complain that the cost is prohibitive (see here & here).


Oregon is the only state requiring lawyers to maintain coverage, and a number of other states require disclosure when coverage is not purchased. The State Bar notes that 1 in 5 firms are not covered by professional liability coverage.



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