Are LLCs and LLPs required to have professional liability insurance coverage?

• A. No
• B. Yes
• C. Only LLCs
• D. Only LLPs

Answer: (B)

In Massachusetts, professional liability insurance is required for professional entities that provide podiatry services. Both limited liability companies and professional limited liability partnerships must carry professional liability (malpractice) coverage. This insurance protects patients and satisfies regulatory requirements tied to licensure and the ability to practice, ensuring there is funds available to address malpractice claims. Without this coverage, a podiatry practice formed as either an LLC or an LLP would not meet regulatory standards and could face discipline or limits on ability to operate. The idea is that the protection and accountability provided by this insurance apply to both types of professional entities, not just one.