What is the primary purpose of professional indemnity insurance held by a Victorian estate agency?
Correct Answer
D) To compensate people who suffer loss from the agent's professional negligence or errors.
Professional indemnity insurance covers claims by clients and third parties who suffer financial loss because of the agent's negligent advice, errors or omissions in their professional work. It means a person harmed by a professional mistake can be compensated even if the agent could not pay personally. It is different from property insurance and from the Victorian Property Fund, which deals with trust money losses.
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