12-1 Introduction

• Jurisdiction: United States

12-1 Introduction

In most instances, lawyers in Florida are not required to have a legal malpractice insurance policy, do not have to report to any entity whether they have coverage, and do not have to advise their clients if they decide to "go bare."¹ However, certain types of commercial clients—such as title insurance companies—do require proof of insurance. In addition, lawyers managing or participating in group legal service plans must carry at least $100,000 in insurance.² Similarly, lawyer referral services operated by local bar associations must show that every participating lawyer has at least $100,000 in insurance.³ The ethics rules also require approved legal aid organizations to file with the Florida Supreme Court statements explaining whether, and to what extent, certain attorneys working with them are covered by insurance.⁴

Lawyers who practice without insurance normally cite the cost of coverage and a concern that having a policy will make them a litigation target. Of course, they often feel differently after they are sued.⁵

--------

Notes:

^[1] See Leslie C. Levin, Lawyers Going Bare and Clients Going Blind, 68 Fla. L. Rev. 1281 (2016). Florida is one of only a handful of states that has rejected the ABA's Model Court Rule on Insurance Disclosure (2004), which requires l awyers in private practice to annually report to their state's highest court whether they have, and intend to maintain, professional liability insurance. See https://www.americanbar.org/content/dam/aba/administrative /professional_responsibility/chart_implementation_of_mcrid.pdf. Nevertheless, if a client asks a Florida lawyer whether he or she has legal malpractice insurance, the lawyer must answer the question truthfully. R. Regulating Fla. B. 4-1.4(a)(4); R. Regulating Fla. B. 4-8.4(c). Whether the lawyer must report subsequent changes in coverage to the client is an open question. In all likelihood, the lawyer does have such an obligation if the client has made it clear that it considers such information "material."

^[2] R. Regulating Fla. B. 9-2.2(a)(2) (managing attorneys); R. Regulating Fla. B. 9-2.2(c)(1) (plan attorneys).

^[3] R Regulating Fla. B. 8-2.2(c)(1). The requirement that other types of legal referral services have such insurance was repealed in 2018. See In re: Amendments to R. Regulating Fla. B.—Subchapter 4-7...