Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

What are the two main groups of professionals covered under Malpractice and Errors and Omissions Liability policies?

1. Healthcare and legal professionals

2. Legal and architectural professionals

3. Healthcare and construction professionals

4. Healthcare and business professionals

The correct answer is: Healthcare and legal professionals

The correct response identifies the two primary groups covered under Malpractice and Errors and Omissions Liability policies as healthcare and legal professionals. These professions are particularly vulnerable to liability claims due to the nature of the services they provide, which often involve a duty of care that, if breached, can lead to significant repercussions for clients. Healthcare professionals, such as doctors and nurses, carry the responsibility of ensuring patient safety and delivering optimum medical care. Any error in diagnosis or treatment may lead to severe harm, resulting in litigation for malpractice. Similarly, legal professionals, such as lawyers, also face Errors and Omissions claims when they fail to provide competent representation or advice to their clients, which could significantly affect a client's rights or interests. Focusing on these two groups emphasizes the critical need for appropriate liability coverage, as both sectors deal with sensitive and high-stakes scenarios where professional errors can have life-altering consequences. The other options combine professionals from different fields, but they do not capture the primary groups that specifically require these types of liability coverage as outlined in the question context.