Partnering with another auditor here in Maine. Should we get separate E&O policies or one joint policy? CMP has some large commercial accounts we want to pursue together.
E&O for partnership vs sole proprietorship
Joint policy can be cheaper but creates complications if the partnership dissolves. Each partner needs to be specifically named and covered.
We tried joint coverage and it was a nightmare when my partner retired. Had to get tail coverage and new policy. Separate policies are cleaner even if slightly more expensive.
Consider forming an LLC and getting corporate E&O coverage. Protects both partners and makes transitions easier if circumstances change.