I apologize for that, I was asking the question as it was posed by my partner. I appreciate all the advise so far, pretty much confirming my thoughts about the matter
You should realize that your partner is just doing work that you don't get your cut of. If he gets enough work without you he won't need you anymore.
My partner wants to do these side jobs for friends. I didn't agree with the low pricing my partner offered them (working for below our normal wage amount with no profit for the company) so I refused my part in it, therefore refused the company's involvement and told my partner he can take on this work individually as a 1099 for them if he wanted to. He wants to use the company's liability insurance to cover himself on these side jobs but I disagree.
As well you should disagree. As I have already said knowingly or not if something goes wrong it will company on the partnership.
Thank you for all your help!