LLP or Limited Liability Partnership if you want to call yourselves partners.... PC or Professional Corporation if you want to call yourselves shareholders or directors. Our firm is a PC and we have directors instead of partners. I think the major difference is how the business of the firm is managed. Its been a while since I studied business entities.

In an LLP one partner is not responsible or liable for another partner's misconduct or negligence. This is an important difference from that of a limited partnership. In an LLP, some partners have a form of limited liability similar to that of the shareholders of a corporation.

Professional corporations, which may have a single director or multiple directors, do not usually afford that person or persons the same degree of limitation of liability as ordinary business corporations. Professional corporations often exist as part of a larger, more complicated, legal entity; for example, a law firmor medical practice might be organized as a partnership of several or many professional corporations.

I would believe this would explain the difference in the amount of liability/malpractice coverage needed for both.