Professional liability insurance—sometimes called malpractice insurance or errors and omissions insurance—is insurance that may be purchased by attorneys and law firms to pay the costs of defending legal malpractice claims, and the costs of settling such claims or paying the judgment awarded to a plaintiff on such a claim. Most states do not require attorneys to purchase professional liability insurance, but some states require attorneys who do not carry professional liability insurance to provide notice to their clients of that fact. Some states require attorneys to have their clients sign a written disclosure that the attorney does not have professional liability insurance.

In the state of Alabama, attorneys are not mandated by state law to carry professional liability insurance, also known as malpractice insurance or errors and omissions insurance. However, the Alabama Rules of Professional Conduct require attorneys who do not have such insurance to inform their clients of this lack of coverage. Specifically, Rule 1.4(c) of the Alabama Rules of Professional Conduct states that a lawyer who does not have professional liability insurance must inform a new client in writing at the time of the client's engagement of the lawyer, if the lawyer regularly represents private clients on matters for which the lawyer does not have professional liability insurance. This disclosure must be made to the client in writing and must be acknowledged by the client. Failure to comply with this rule can result in disciplinary action against the attorney. It is important for attorneys practicing in Alabama to be aware of this requirement and for clients to be informed about their attorney's insurance status.