A new rule of professional conduct adopted by the California Supreme Court, effective January 1, 2010, will require attorneys to disclose to clients in writing if they do not carry malpractice insurance. If attorneys lose their insurance while representing a client, they must inform the client within 30 days.
The rule will not apply to government or in-house lawyers.
This action by the California Supreme Court resolves a dispute between those who wanted such a rule in the interests of consumer protection and those who opposed the rule--primarily on the basis it would impose undue burdens on solo practioners and small firms.
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