When you work as a broker or banker for mortgages, there are a number of risks of which you should keep aware of. Taking out a sensible insurance policy is not as straightforward in this industry as it is in other fields. A broker works between both a lender and a borrower. Third-party organizations are just as susceptible to common risks of the industry, but many insurance packages do not cover these areas outright. This is why you need to stay aware of mortgage broker insurance requirements.
Understanding E&O Coverage
One of the biggest areas to pay attention to when it comes to the insurance needs of brokers is E&O coverage. Errors and omissions insurance protect your business from the commonplace mistakes that can occur when a pertinent piece of information is left out of a contract or disclosed to the wrong party. Also called Professional Liability Insurance, this is a key component in your insurance package and it covers a number of typical scenarios in your field. The package provides separate limits for indemnity and defense. Other important options for this plan include:
- Independent contractor coverage
- Options for extended reporting
- Coverage for claims related to pollution
Go With a Suitable Plan
When it comes to your business, you need to think about how your insurance can make a difference. Take out an appropriate plan and keep yourself protected against an array of potential problems.