Lawyers Soon Must Disclose Malpractice Insurance

Most people would be surprised to learn the lawyers do not have to carry malpractice insurance (neither to doctors, by the way). And most clients don’t ask whether their lawyer carries malpractice insurance. That’s about to change.

Beginning January 1, 2010, lawyers who do not carry malpractice insurance must disclose that fact to their clients, in writing, at the time the attorney-client relationship is being formed, but only if the representation is expected to exceed four hours.

This new Rule of Professional Conduct (Rule 3-410) was approved by the Supreme Court in August, but not all attorneys are happy about it. Opponents of the new rule, mostly from solo practitioners and small firms, argued they would be unfairly affected, which would impose undue expenses and unfairly stigmatize those without it. It is estimated that approximately 20% of all lawyers in California do not carry legal malpractice insurance.

Here at the Walton Law Firm, we have always maintained an insurance policy for errors and omissions (malpractice). While it is ridiculously expensive (like pretty much all insurance these days), it’s the responsible thing to do, for both client and lawyer.

Source: State Bar of California

The Walton Law Firm provides representation in the areas of personal injury, wrongful death, and nursing home abuse and neglect. Estate planning services are also available, including the creation or modification of will and trusts. Call (760) 607-1325 for a free consultation.

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