Section 11.01 - Liability Insurance Requirements for Limited Liability Corporations and Limited Liability PartnershipsA limited liability company and a limited liability partnership which owns or operates any practice, facility or business which provides Home Inspection 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 c. 108A, § 45(8)(a).(2) For each claim concerning an LLC, the minimum insurance coverage shall be either: (a) at least $250,000.00 multiplied by the number of individual registrants employed by or who are officers of the LLC; or(b) an aggregate amount of at least $1,000,000.00 multiplied by the number of individual registrants employed by or who are officers of the LLC.(3) For each claim concerning an LLP, the minimum insurance coverage shall be:(a) at least $250,000.00 multiplied by the number of individual registrants employed by or who are partners of the LLP; or(b) an aggregate amount of at least $1,000,000.00 multiplied by the number of individual registrants employed by or who are partners of the LLP.(4) An LLP shall be considered to have complied with the requirements of 266 CMR 11.01 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: (a) deposit in trust or in bank escrow of cash, bank certificates of deposit, or United States Treasury obligations; or(b) a bank letter of credit or insurance company bond.(5) The insurance coverage required by 266 CMR 11.01 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.Amended by Mass Register Issue 1355, eff. 12/29/2017.