Anyone involved in the consumer lending process is exposed to a significant amount of risk. Stringent compliance guidelines and an ever-changing economic climate make securing a residential loan very stressful. With so much at stake for a home buyer (and seller) it is not unusual for a failed transaction to result in litigation, and a mortgage broker can find his company in the cross hairs.
Because of this exposure, it important for lending professionals to consider a unique set of mortgage broker insurance needs. In addition to a standard business policy that includes property and general liability insurance, mortgage brokers should strongly consider adding the following, either as endorsements or stand-alone policies:
Errors and Omissions
Brokerage firms are especially exposed to claims of negligence. Be sure to choose professional liability coverage that is specifically designed for a lending specialist.
A broker acts as an intermediary for two parties dealing with large sums of money so protection against risks like wire fraud and employee dishonesty is essential.
Cyber and Privacy Liability
With an increasing reliance on email and internet communication, mortgage brokers are particularly susceptible to claims of customer identity theft, data loss and fraud. Standard liability will not protect a broker from these claims.
Don’t run the risk of a devastating lawsuit. Protect your business by purchasing customized coverage that considers your mortgage broker insurance needs.