Real Estate Council of Alberta Fundamentals Practice Exam

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Prepare for the Real Estate Council of Alberta Fundamentals Test. Utilize flashcards and multiple-choice questions, complete with hints and explanations. Get ready to excel in your real estate exam!

Practice this question and more.

Which statement best describes Comprehensive General Liability Insurance?

It specifically covers real estate transaction issues.
It offers broad coverage for claims against injury or damage.
It solely focuses on real estate professionals' legal fees.
It is mandatory for all real estate transactions.

The correct answer is: It offers broad coverage for claims against injury or damage.

Comprehensive General Liability Insurance is designed to provide extensive protection against claims resulting from injuries or damages that may arise in the course of business operations. This type of insurance covers a broad range of incidents, such as bodily injury to third parties, property damage, and personal injury claims, allowing businesses to safeguard against potentially significant financial losses. By encompassing various risk exposures, it ensures that a business has financial backing to address legal claims stemming from its operations, which is crucial for any professional, including those in the real estate sector. Thus, option B accurately captures the essence and purpose of Comprehensive General Liability Insurance, as it highlights the breadth of coverage offered for claims related to injury or damage.