How Mortgage Brokers Can Protect Themselves With Insurance
Mortgage brokers are currently in high demand in the Ontario area, but any broker would be mistake to do business with PLI mortgage brokers insurance. Professional liability mortgage brokers insurance or E&O mortgage brokers insurance is without a doubt a complete necessity, as it can offer you the protection that you need in a variety of unique situations. That being said, it is always recommended by any insurance professional to combine this coverage with general commercial liability insurance as well. With these two policies you can put your mind at ease and focus on servicing your customers.
As a mortgage broker you basically work as a middleman mediating loans between your clients and a variety of different banks. Regardless, if you are at fault or not, if your customer thinks that you have done something to damage them financially they can take legal action against you. This is exactly when mortgage brokers insurance will protect you. Commercial general liability insurance on the other hand is a different coverage, but it can protect you just as equally as much. If someone tries to sue you for slander or copyright infringement, you can utilize this policy to cover yourself. For instance, if you can’t get a customer approved for a loan they might try to accuse you of slandering their name, even though they have extremely bad credit.
We recommend having atleast $1,000,000 worth of PLI coverage along with $1,000,000 CGL coverage for any mortgage business. Our rates start from $700/year for both policies.
Speak to a broker and find your exact rate online. Make sure to ask your broker about the application process for getting for business insurance.
Are Other Policies Needed For Protection? Yes.
While commercial general liability insurance and PLI mortgage brokers sounds like a godsend, it is not the only type of coverage that you are going to need. In fact, as a mortgage broker you might be faced with more risks than you would imagine. This is why it is always imperative to understand the risks that you face and know exactly how to protect yourself from those risks. Below, you will discover some other types of coverage that can protect you in certain situations.
Cyber Liability Insurance
With the technology is today’s world it is safe to assume that you are going to have a website to attract customers. Unfortunately, there are tons of potential risks online that even the best security can’t prevent. If a hacker gains access to your website and steals your customer’s information, you are going to be held liable. And, this is why cyber liability insurance is a necessity.
Cyber Liability Insurance Recommended Limits – $100,000 Per Claim / $200,000 Aggregate
Mortgage Brokers Crime Insurance
It is true that you aren’t selling product online, but you are still at risk of dishonest employees. Unfortunately, not everyone is as trustworthy as you would like and you even need to protect yourself from your employees. Embezzlement and vandalism are things that take place on a daily basis and this is exactly what crime insurance can protect you against. It can also protect you in the event that a customer or client plays you with a stolen credit card or false check, which happens quite a bit.
Mortgage Brokers Crime Insurance Recommended Limits – $200,000 Per Claim / $500,000 Aggregate
Business Property Insurance
Whether you work out of your home or an office building, you are going to need to ensure that it is protected at all times. You not only need to be protected from crime, but you need to be protected from natural disasters as well. This is exactly what business property insurance was designed to do. In the event that you experience a natural disaster or fire, this policy will cover you.
Business Property Insurance Recommended Limits – $500,000 Per Claim / $1,000,000 Aggregate
What Will You Be Expected To Pay For These Policies?
As you probably already know, every business is going to be charged a different amount for different types of insurance policies. While there are a variety of different factors that can determine your cost, it does help if you have some basic ideal of what you are going to pay.
- Cyber Liability Insurance – $250 a year
- Mortgage Brokers Crime Insurance – $300 a year
- Business Property Insurance – $500 a year
Just remember that these are basic estimates, as each business’s insurance cost is going to be different based on recent history and the risk of the industry that they are in. If you want to get exact quotes and prices you can visit or website or give us a call at our toll-free number listed on our website.
Other useful information
- Business Insurance Cost
- How to get Business Insurance
- Getting a Business Insurance Quote
- What is the difference between occurrence and claims-made policy coverage?
Other professions we also provide insurance for: