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 Tennessee, attorneys are not mandated by state law to carry professional liability insurance, also known as malpractice insurance or errors and omissions insurance. However, the Tennessee Rules of Professional Conduct encourage attorneys to maintain professional liability insurance to cover potential claims of legal malpractice. While there is no statutory requirement for attorneys to inform their clients if they lack such insurance, Rule 1.4 of the Tennessee Rules of Professional Conduct requires attorneys to communicate effectively with their clients, which could be interpreted to include disclosure of the lack of malpractice insurance when it is relevant to the client's decision to employ the attorney. It is important for clients to be aware of their attorney's insurance status, as it may affect their decision to engage with a particular attorney or law firm. Attorneys in Tennessee should consider the ethical implications and potential risks associated with not carrying professional liability insurance.