California Supreme Court Requires Attorneys Without Malpractice Insurance to Directly Notify Clients

Attorneys in California who do not have malpractice insurance are used to walking on a tightrope, but the California Supreme Court has just made things harder for them to continue their ways.  In August 2009, the California Supreme Court changed the disclosure requirements for attorneys who do not carry malpractice insurance. Attorneys without such insurance to directly notify their clients about their lack of coverage. Attorneys who do not have malpractice insurance coverage after the rule goes into effect must disclose the lack of insurance in writing to all of their existing clients. Attorneys who decide to drop coverage they previously held will be required to advise clients in writing within 30 days of the end of their insurance coverage.
The new rule will take effect on January 1, 2010.

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