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 North Carolina, attorneys are not mandated by state law to carry professional liability insurance, commonly known as malpractice insurance. However, the North Carolina Rules of Professional Conduct require attorneys who do not maintain professional liability insurance to inform their clients of this lack of coverage. Specifically, Rule 1.4 (Communication) mandates that a lawyer must promptly inform a client if the lawyer does not have professional liability insurance of at least $100,000 per occurrence and $300,000 in the aggregate per year, unless the lawyer's representation of the client is limited to certain exempt categories of practice as specified by the North Carolina State Bar. This disclosure must be made in writing at the time of the client's engagement of the lawyer, or if the insurance is terminated, as soon as practicable. Failure to comply with these requirements can result in disciplinary action by the North Carolina State Bar.