State Bar will research malpractice insurance impact

The State Bar will pursue further research over the next year on the risk posed by uninsured attorneys, the Board of Trustees said Thursday.

A larger question about requiring attorneys to purchase malpractice insurance is on hold pending the research results. A working group said in March it couldn't make a final decision without more information and voted 8-6 against implementing the mandate at that time.

The bar will issue a request for proposal, and estimates the project will cost between $25,000 and $125,000.

The State Bar's Board of Trustees approved Thursday two research projects to be completed by 2020. One, to be conducted by an academic researcher on retainer, will interview malpractice attorneys to see if they're less likely to pursue claims against uninsured attorneys. The other will look at available insurance options for legal aid groups and will be conducted by State Bar staff.

Should the bar decide to mandate insurance, about 13,000 California lawyers would need to purchase coverage. About 30% of sole practitioners are uninsured, according to a State Bar survey.

Two states, Idaho and Oregon, mandate malpractice insurance. Nevada, New Jersey and Washington declined to mandate it after studying the issue.

A different task force recommendation to require attorneys to publicly report their insurance status was not voted on. The disclosure requirement would need a rule change and approval by the state Supreme Court. If the rule change is pursued, an attorney's insurance status would be posted on their public online State Bar profile.

-- Erin Lee