What is errors and omissions (E&O) insurance in the context of Alberta real estate?
Correct Answer
A) Professional liability insurance covering claims arising from a professional's errors or negligence
Errors and omissions (E&O) insurance is professional liability insurance required for all licensed real estate professionals in Alberta. It provides coverage for claims arising from errors, omissions, or negligent acts in the course of providing real estate services. This insurance protects both the professional and the consumer.
Why This Is the Correct Answer
Under RECA regulations, errors and omissions insurance is mandatory professional liability coverage for all licensed real estate professionals in Alberta. It covers claims arising from professional errors, omissions, or negligence in providing real estate services. This insurance protects both the professional and the consumer, ensuring financial resources are available to compensate for covered losses.
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