Physician-blogger Musings of a Dinosaur has some thoughts on the issue. More states are requiring lawyers to inform clients whether they carry liability insurance, according to the ABA Journal. Texas is one state where many lawyers are tenaciously trying to head off such a rule: “according to a February 2008 survey of attorneys conducted by the State Bar, 48 percent of the 6,160 attorneys who completed the survey do not have professional liability coverage.” [Texas Lawyer, White Coat]
8 Comments
In Germany you will not be admitted to the bar unless you have and maintain professional liability insurance for at least 1 million EUR.
I think it should be mandatory for most doctors, lawyers, accountants, etc. But a law professor, a doctor conducting research, an in-house accountant… these folks should be spared. Anyone with a client should be the rule.
No malpractice insurance from the very same utterly corrupt industry that demanded and received mandatory malpractice insurance from physicians and hospitals.
And my experience is that legal malpractice is very common.
This requires more study. On its face, I am not opposed to a rule requiring lawyers to post whether or not they carry malpractice insurance on the state bar website. Additionally, I wonder if lawyers should also get the same pre-lawsuit protections that the medical industry enjoys.
Certain Courts do require a lawyer to carry $250,000 in errors and omissions insurance to get court appointments.
In British Columbia, the Law Society (the equivalent of the bar association) provides a minimum liability insurance policy the purchase of which is obligatory for all lawyers in private practice. It also maintains a fund from which clients whose funds are stolen by their lawyer are compensated. That so many American lawyers don’t have any coverage is amazing.
No sympathy from Australia. We must have such insurance as a condition of our practising certificate ie its compulsory.We also have a compensation fund. Like Bill from British Columbia we are amazed that you guys don’t have it.
In Minnesota, USA, our court recently required reporting and disclosure of legal malpractice insurance coverage. Personally, I oppose any mandate or cram-down of coverage, but I favor this mandatory disclosure of coverage (or not) rule. Why? The level of a lawyer’s financial responsibility, including professional liability insurance, is something the public deserves to know. Beyond that, I think it appropriate for the Minnesota Supreme Court to make it easy for the public to learn (on its website). My only fear about it is that it could be a stepping stone towards a mandate of coverage.
Thomas C Gallagher, Minneapolis Criminal Lawyer
This is a complex issue that is hotly debated on a state by state basis and involves a variety of issues ranging from client disclosure, public notice and financial responsibility and the details therein. For specific details about the rules in each state, look at this link from the ABA: http://www.abanet.org/cpr/clientpro/malprac_disc_chart.pdf