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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 11 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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<img style="max-width: 100%;height: auto;max-width: 100%;height: auto" loading="lazy" class="alignright size-medium wp-image-1678" src="https://www.thelawforlawyerstoday.com/wp-content/uploads/sites/754/2015/05/insurance-umbrella-300x270.jpg" alt="insurance umbrella" width="300" height="270">Only one jurisdiction in the nation &mdash; <a href="http://law.justia.com/codes/oregon/2011/vol1/009/9-080">Oregon</a> &mdash; requires lawyers to carry legal malpractice insurance. &nbsp;But all the other states have varying requirements about malpractice insurance and disclosing whether or not you carry it. &nbsp;Knowing the rule in your jurisdiction is vital to staying out of ethics trouble.
Disclosure data
A helpful piece by Prof. Roy Simon, Hofstra University distinguished professor of legal ethics, emeritus, in the Association of American Law Schools Professional Responsibility Section Spring newsletter (subscription required) collects the data and points to the <a href="http://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/malprac_disc_chart.authcheckdam.pdf">ABA&rsquo;s comprehensive state-by-state chart</a>.
<a href="http://www.supremecourt.ohio.gov/LegalResources/Rules/ProfConduct/profConductRules.pdf">Ohio</a>, for instance, is one of only seven jurisdictions that require lawyers (with certain exceptions) to inform a client directly if they do not carry a certain level of malpractice insurance. &nbsp;And Ohio lawyers who fail to communicate that fact to their clients have been <a href="http://supremecourt.ohio.gov/ROD/docs/pdf/0/2015/2015-Ohio-1190.pdf">reprimanded</a>, and even <a href="http://www.supremecourt.ohio.gov/rod/docs/pdf/0/2014/2014-ohio-5261.pdf">suspended </a>(at least when the failure to disclose is coupled with other misconduct). &nbsp;The other states with disclose-to-clients requirements are Alaska, California, New Hampshire, New Mexico, Pennsylvania and South Dakota.
Disclosing on registration forms
Eighteen other jurisdictions require lawyers to disclose on their periodic registration statements whether they carry malpractice insurance. &nbsp; (See the ABA&rsquo;s chart for the list.) &nbsp;This is in line with the <a href="https://www.thelawforlawyerstoday.com/wp-content/uploads/sites/754/2019/12/ABA-Model-Court-Rule-on-Insurance-Disclosure-August-2004.pdf" target="_blank" rel="noopener">ABA&rsquo;s Model Court Rule on Insurance Disclosure</a>, adopted in 2004. &nbsp;The concept behind the Model Court Rule is to provide a potential client with the ability to get access to insurance information, according to the <a href="https://www.thelawforlawyerstoday.com/wp-content/uploads/sites/754/2019/12/ABA-Standing-Committee-on-Client-Protection-report.pdf" target="_blank" rel="noopener">report of the&nbsp;Standing Committee on Client Protection</a>, which recommended the rule.
At least four states, according to the ABA&rsquo;s data, are considering a malpractice insurance disclosure rule &mdash; Maine, South Carolina, Utah and Vermont.
Is insurance disclosure a good thing?
Naysayers on the subject of mandatory disclosure question need for it, point to a lack of hard data showing that it benefits clients, and assert that requiring lawyers to disclose whether they are insured unfairly stigmatizes those who are not &mdash; or even <a href="http://www.courier-journal.com/story/news/local/2014/06/16/lawyers-lack-insurance-costs-okolona-woman/10638183/">might encourage claims against those who are</a>.
On the other hand, <a href="http://www.baylor.edu/content/services/document.php/116800.pdf">supporters of mandatory disclosure</a> say that&nbsp;clients should understand the risk involved in retaining a lawyer who is not insured; and absent disclosure, most clients likely assume that the lawyer they hired is insured.
But if you are licensed in the near-majority of jurisdictions with some form of insurance disclosure requirement, this debate is somewhat beside the point. &nbsp;And if your license is in one of the states now considering a disclosure rule, stay tuned. &nbsp;Failing to comply can get you where you don&rsquo;t want to be &mdash; in trouble.
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Ethics

Legal Ethics, Professional Responsibility and the Business of Law

Do you know your rule on malpractice insurance disclosure?