Cash flow of lawyers is impacted by insurance proposal

Mike McKee, a reporter for the San Francisco Recorder once again underscores the hostility that California lawyers have against the current malpractice insurance disclosure proposal.

Still, the question I asked earlier in this series has yet to be answered by the Board of Governors! Why is it that shareholders of law professional corporations do not have to disclose that they do not have malpractice insurance? Or, at least meaningful malpractice insurance?  All they need to do is sign a piece of paper saying that they will be responsible for the first $50,000 of a malpractice judgment. There is no financial statement required, no verification of financial ability and no insurance policy required under the current rules; nor is there any such requirement under the new proposed rule!

And why is this fair in the minds of the Governors supporting this proposal?

Categorized in: Cash Flow - Finances, Management