Although California does not require attorneys to carry malpractice insurance, there is good reason why attorneys practicing in the state should carry it.
The California Supreme Court has adopted a new rule that requires attorneys who do not have malpractice insurance to notify their clients that they are not insured. (California Rules of Professional Conduct, Rule 3-410). The disclosure must be made in writing at the time the client hires the attorney and must be made to existing clients. The attorney also must notify all clients if malpractice coverage is cancelled, terminated or otherwise dropped and not replaced. This rule forced more than 30,000 California attorneys who were uninsured to rethink whether they should or could continue practicing without coverage.
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