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 Vermont, attorneys are not mandated by state law to carry professional liability insurance, also known as malpractice insurance or errors and omissions insurance. However, the Vermont 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 Vermont Rules of Professional Conduct states that a lawyer shall inform a new client in writing if the lawyer does not have professional liability insurance of at least $100,000 per occurrence and $300,000 in the aggregate. This requirement ensures that clients are aware of the potential risks involved in engaging an attorney without malpractice insurance. Attorneys in Vermont must comply with this disclosure requirement to maintain transparency with their clients regarding their insurance status.