Liability Insurance Requirements for Limited Liability Corporations and Limited Liability Partnerships

(1) A limited liability company and a limited liability partnership which owns or operates any facility or business whichprovides podiatric services shall maintain professional liability insurance which meets the minimum standards of 249 CMR 7.00. (2) 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), respectively. (3) For each claim concerning an LLC, the minimum insurance coverage shall be either: (a) in an amount of at least $50,000.00 multiplied by the number of individual licensees employed by or who are officers of the LLC; or (b) in an aggregate amount of at least $150,000.00 multiplied by the number of individual licensees employed by or who are officers of the LLC. (4) For each claim concerning an LLP, the minimum insurance coverage shall be: (a) in an amount of at least $50,000.00 multiplied by the number of individual licensees employed by or who are partners of the LLP; or (b) in an aggregate amount of at least $150,000.00 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 withthe requirements of249 CMR7.01 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. (5) The insurance coverage required by 249 CMR 7.01 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.