Alberta General Insurance Level 1 Practice Exam

Errors and omissions insurance, also known as professional liability insurance, is crucial for agents and brokers as it provides protection against claims of negligence or inadequate work. In Alberta, the minimum required coverage for errors and omissions insurance for all agents and brokers is set at $2 million. This standard is in place to ensure that professionals in the insurance industry have sufficient coverage to address potential claims that could arise from their professional actions.

Having this level of coverage helps maintain the integrity of the profession, as it reassures clients that their interests are protected even in the event of an error or oversight. Furthermore, compliance with this requirement is vital for maintaining one's licensing and operational status within the insurance sector in Alberta. This ensures that agents and brokers are equipped to handle the financial implications of legal claims, protecting both themselves and the clients they serve.