Starting January 1, 2025, all active Oregon-licensed attorneys with a principal office outside Oregon will be required to carry malpractice insurance substantially equivalent to Oregon's Professional Liability Fund (PLF) primary coverage—unless they qualify for a specific exemption.

If you're a part-time lawyer licensed in Oregon but residing or practicing primarily elsewhere, this regulatory change could significantly affect your practice and licensure status.

The New Rule: Professional Liability Insurance Is Mandatory

Under the newly adopted Oregon State Bar Rules of Licensure, the key provision reads:

"Each active member with a principal office outside Oregon… is required to obtain malpractice coverage substantially equivalent to PLF primary coverage unless otherwise exempt under the PLF Bylaws and Policies for a reason other than their principal office is not in Oregon" (Rules of Licensure 5.3).

This rule applies regardless of whether you’re full-time or part-time, as long as you are engaged in the private practice of law and registered as an active member of the Oregon State Bar.

Who This Rule Applies To

This rule targets a growing demographic: Oregon attorneys who maintain active licenses but live or work primarily outside the state. This includes:

• Solo or small-firm practitioners with remote offices
• Attorneys handling Oregon-based legal work while domiciled in another state
• Part-time or semi-retired lawyers practicing from out-of-state homes
• Lawyers temporarily admitted under Rule for Admission 13.70

If your principal office—as defined by what you “hold out to the public as your practice location”—is not in Oregon, this rule affects you.

What Is “Substantially Equivalent” Malpractice Coverage?

You are not required to purchase PLF coverage, but your private malpractice insurance must be substantially equivalent to PLF’s primary policy. While Oregon’s PLF coverage specifics can be complex, it typically includes:

• Minimum limits: $300,000 per claim / $300,000 aggregate
• No deductible
• Coverage for innocent partners
• Broad coverage for common legal errors and omissions

Your out-of-state policy should closely match these standards in scope, exclusions, and policy limits to remain compliant.

Why the Change?

The Oregon Supreme Court adopted these changes to:

• Harmonize standards between in-state and out-of-state practitioners
• Close malpractice coverage gaps for clients served by Oregon attorneys across borders
• Ensure accountability in a digital and remote law practice environment

This also reflects a broader national trend toward mandatory professional liability coverage for active bar members.

What If You’re Exempt?

You may qualify for an exemption only if your reason is something other than being based out of state. For example, you may be exempt if:

• You are not in private practice
• You are retired or inactive
• You qualify under a PLF Bylaws exemption due to your employer’s coverage

Simply living outside of Oregon does not exempt you anymore.

What If You Don’t Comply?

If you fail to secure proper coverage or an approved exemption:

• You risk administrative suspension of your law license
• You will be reported to the State Court Administrator and Oregon judiciary
• You may lose the ability to practice, even part-time, under your Oregon license

Compliance will be monitored and enforced by the Oregon State Bar and the PLF in accordance with Title 3 and Title 5 of the Rules of Licensure.

Steps to Ensure Compliance

1. Review your license status: Confirm you are currently an active Oregon bar member.
2. Determine your “principal office”: Where are you advertising or presenting your services to the public?
3. Evaluate your current malpractice policy: Does it meet or exceed PLF’s minimum standards?
4. Secure coverage or seek exemption: Don’t delay—approval processes take time.
5. Document compliance: Keep records in case the Bar requests evidence.

How We Can Help

At PT Pro, we specialize in malpractice insurance for part-time lawyers. We understand the unique regulatory, budgetary, and logistical needs of remote practitioners.

Why Choose Us?

✅ Policies tailored for multistate and part-time practices
✅ Affordable options that meet Oregon’s "substantial equivalence" standard
✅ Fast quotes and same-day coverage options
✅ Dedicated support for lawyers

Final Thoughts

If you're an Oregon-licensed attorney residing outside of the state, the 2025 Rules of Licensure mark a pivotal shift. Malpractice insurance is no longer just a safety net—it’s a requirement.

By acting early, you not only avoid suspension but also protect your practice, reputation, and clients. For many part-time practitioners, the right insurance plan brings confidence, compliance, and peace of mind.