Professionals all around Canada need to equip themselves with E&O Insurance. The small monthly or annual fee can provide the professional will an abundance of peace of mind and will allow them to perform the job at hand, without worrying about potential errors. What exactly is E&O Insurance also known as professional liability insurance for mortgage brokers and how can it help?
Understanding E&O Insurance
Mortgage brokers have plenty of responsibilities on their shoulders and life is completely uncertain. Even when you do your best, errors may still occur. This is what E&O, or errors and omissions insurance, is all about. This insurance is also referred to as professional liability insurance and its specific purpose it to protect professionals from liability exposures at their job. So, why should a mortgage broker sign up for errors and omissions insurance? Well, there are truthfully numerous reasons.
In some cases, the consumer or client may actually demand that your organization do so. On the other hand, law regulation may require you to do so. Finally, you should realize that mortgage brokers are at a constant risk of being sued. If you wish to protect yourself and your organization from lawsuits, you’ll want to sign up for professional liability insurance for Mortgage Agents. Several brokers, including Benesure and Davis + Henderson, were recently sued for substantial amounts, due to failures on their behalf. If you do not want to follow in their footsteps, you will want to protect yourself with professional liability insurance.
How Much Is Needed
Before delving into the specifics, you should realize that E&O insurance is required anytime you’re going to take a risk! Before engaging with the client, the insurance should be obtained. Some contracts and clients will also require you to obtain this insurance, as a way to protect their investments. Now, it is imperative to explore the quantity needed. This will typically vary and take a more individualistic approach. Each company’s requirements will deviate from one another. This is completely understood by LiabilityCover, which offers the cheapest prices in the industry.
Our Insurance company will work with you closely to ensure that your specific needs and desires are met. This determination will be made based on the number of employees you have, as well as your annual revenue.
As a mortgage broker, there are other insurance needed to keep your business in operation. Aside from E&O insurance, your brokerage should also consider obtaining the list of insurance below.
- Fidelity bond – Protects against employee dishonesty
- Directors & Offices – Helps to protect the directors and officers from 3rd party lawsuits
- Mortgage impairment – Provides protection against impairment of mortgage insurance, which is brought about due to uninsured loss
- REO or Foreclosed Property – In order to take possession of a foreclosed home, insurance is required
- State License Bonds – Surety bonds are a necessity, in order to comply with State regulations
There are many hoops that Mortgage Brokers must jump through, before they’re allowed to make a profit. At LiabilityCover, this is totally understood and we wish to make your life a tiny bit easier. By contacting us today, you’ll learn about your options.