Mortgage bankers offer loans and other professional services to clients. The risks involved vary from one institution to another, so it is critical to seek the advice of an experienced insurance agent to help you develop a comprehensive risk mitigation plan.
What Liability Insurance Should Mortgage Bankers Seek?
Mortgage errors and omissions insurance, also known as professional liability insurance, is a must for bankers and brokers. The professional services you provide are susceptible to lawsuits. Claims can be filed against your business or one of your professionals. Without adequate coverage, you may be responsible for paying the legal fees, even if you aren’t at fault.
Coverage must be customized to protect you from a variety of legal claims, including:
- Negligence – Loan paperwork that isn’t submitted on time could be rejected, and the client may sue your company for damages.
- Errors and omissions – Mistakes on paperwork can result in legal problems for your business.
- Misrepresentation – If a client is promised a loan but isn’t aware of the details involved in the payment terms, they make seek legal counsel.
What Scenarios Aren’t Covered In Professional Liability Plans?
Any intentional law violations or other fraudulent acts by your professional staff will not be covered. Make sure you trust the employees that represent your company.
Protect your mortgage banking institution from unwanted litigation with a comprehensive liability plan.