What is the minimum liability insurance coverage per claim based on the number of individuals employed by the LLC/LLP?

• A. Minimum $50,000 multiplied by the number of individuals employed
• B. Aggregate of at least $150,000 multiplied by the individual licensees or partners of the LLP/ officers of the LLC
• C. A flat $100,000 per claim
• D. A flat $75,000 per claim

Answer: (A)

Minimum liability coverage is set by multiplying $50,000 by the number of individuals employed by the LLC/LLP. This scales the coverage with practice size to reflect the increased potential exposure as more people are involved in the practice. For example, with four employees, the required per-claim coverage would be $200,000. Flat per-claim amounts (like $100,000 or $75,000) don’t adjust for how many people work there, and an aggregate amount tied to licensees or officers wouldn’t match the actual staff exposure, since the rule specifically bases the minimum on the number of individuals employed.