When working as an intermediary between a lender and a borrower, there are plenty of moving parts. Emotions can also run high in any step of the loan process, from origination to closing. To make sure you are covered in any potential lawsuit as a Mortgage banker or broker, it is imperative to obtain mortgage broker insurance.
What Types of Insurance Should I Have as a Mortgage Broker?
One of the most important types of coverage to consider is Errors and Omissions (E&O) insurance. The bottom line is that when you are processing a loan, there may be potential for some sort of litigation if the client is not satisfied with the result. Whether you specialize in one thing or offer multiple services to your clients, E&O insurance coverage can protect you from any mistakes that could occur during your time working with a customer, even if the claims they make prove to be false.
Other important mortgage broker insurance requirements may include:
- Cyber Insurance
- Professional Liability
- Workers’ Compensation Insurance
Consider Getting Custom Coverage
Because your job is more complicated than most, general liability insurance might simply not be enough to cover everything you need. Look into Mortgage Brokers E&O insurance programs that offer options, including separate limits for indemnity and defense, special coverage for any independent contractors you might have, and programs catered to commercial lenders.