Professional partnerships must insure liability or set aside judgment funds

A registered limited liability partnership providing professional services must carry liability insurance when it is reasonably available. This applies to registered limited liability partnerships that provide professional services. Coverage is $50,000 per professional employee, with a $100,000 minimum and a $500,000 maximum. A partnership is considered compliant if it instead sets aside $500,000 in specified funds for judgments. Qualifying insurance or funds maintained under another jurisdiction's laws may count. This section takes effect upon passage.

The act provides a chapter of rules for limited liability companies, including how they are formed, managed, and closed, and how they can combine or change business form. The chapter covers Rhode Island limited liability companies, including companies formed before its effective date. Before January 1, 2029, the chapter applies to companies formed on or after its effective date and older companies that elect to use it. Sections 2 and 3 take effect January 1, 2028. Beginning January 1, 2029, the chapter applies to all limited liability companies.