The New Jersey Supreme Court has held that 

The requirement in Rule 1:21-1C(a)(3) that law firms organized as LLPs maintain malpractice insurance does not extend to the firm’s windup period when the law firm has ceased performing legal services, and does not require purchase of tail insurance. In addition, the violation of Rule 1:21-1C(a)(3) does not result in automatic conversion of a law firm organized as an LLP into a GP. As a result, Mortgage Grader had no vicarious liability claim against Ward. Rule 1:21-1C permits attorneys to organize as LLPs, which establishes a shield from personal liability for LLP partners. Rule 1:21-1C conditions practice by law-firm LLPs on compliance with partnership law, adherence to the rules of professional responsibility, and maintenance of malpractice insurance. Specifically, section (a) provides that “[a]ttorneys may engage in the practice of law as limited liability partnerships” provided that “[t]he limited