Do I really need lawyers professional liability insurance?

In short—yes! Lawyers professional liability (also known as LPL) insurance is the more formal name for legal malpractice insurance. Although there is no specific requirement under the Rules of Professional Conduct for attorneys in Pennsylvania to carry LPL insurance, Rule 1.4(c) (part of the requirement for “communication”) requires lawyers in private practice to notify new clients in writing if they do not have professional liability insurance of at least $100,000 per incident and $300,000 total per year. The insurance must be subject to “commercially reasonable deductibles, retention or co-insurance.” Lawyers must also inform clients if they become uninsured at these levels at any point. Comment 8 exempts from this rule attorneys who do not have private clients, including attorneys in full-time government practice or employed full-time as in-house corporate counsel.