Liability Insurance Requirements for Limited Liability Corporations and Limited Liability

Partnerships A limited liability company and a limited liability partnership which own or operate any facility or business which provides veterinary services shall maintain professional liability insurance which meets the following minimum standards: (1) The insurance shall cover negligence, wrongful acts, errors and omissions and insure the LLC and its officers or the LLP and its partners as required by M.G.L. c. 156C, § 65 and M.G.L. c. 108A, § 45(8)(a). (2) For each claim concerning an LLC, the minimum insurance coverage shall be either: (a) in an amount of at least $50,000.00 per incident multiplied by the number of individual licensees employed by or who are officers of the LLC; or (b) in an amount of at least $150,000.00 in aggregate multiplied by the number of individual licensees employed by or who are officers of the LLC. (3) For each claim concerning an LLP, the minimum insurance coverage shall be: (a) in an amount of at least $50,000.00 per incident multiplied by the number of individual licensees employed by or who are partners of the LLP; or (b) in an amount of at least $150,000.00 in aggregate multiplied by the number of individual licensees employed by or who are partners of the LLP. (c) An LLP shall be considered to have complied with the requirements of 256 CMR 10.01 if the partnership provides for the above-specified amount of funds specifically designated and segregated for the satisfaction of judgments against the partnership or its partners based on negligence, wrongful acts, errors and omissions by: 1. deposit in trust or in bank escrow of cash, bank certificates of deposit, or United States Treasury obligations; or 2. a bank letter of credit or insurance company bond. (4) The insurance coverage required by 256 CMR 10.01 may provide that it does not apply to any dishonest, fraudulent, criminal or malicious act or omission of the insured LLC or any employee or officer thereof or the insured LLP or any employee or partner thereof. (5) Cancellation or any other interruption in required insurance coverage shall require an LLC or LLP to immediately cease the practice of veterinary medicine until such time as the LLC or LLP is in compliance with 256 CMR 10.01. (6) An LLC or LLP must notify the Board within five business days if its insurance coverage is cancelled or otherwise interrupted. Failure to provide the required notice to the Board will subject to disciplinary action pursuant to M.G.L. c. 112, § 59 licensees who are officers of the LLC or are partners of the LLP. (7) An officer of an LLC or a partner of an LLP may be required to provide verification of compliance with 256 CMR 10.01 to the Board when he or she seeks initial licensure, renewal (MA REG. # 1339, Dated 5-19-17) 256 CMR: BOARD OF REGISTRATION IN VETERINARY MEDICINE of a license or at any other time as requested by the Board.