Professional Liability for Mortgage Brokers
Mortgage brokers provide an essential service for real estate buyers and owners. Whether purchasing or refinancing a property, their customers depend on them to help secure the services of a qualified lender and then perform the necessary tasks to close the transaction. It’s important to remind your mortgage broker clients or prospects that things don’t always go as planned when arranging financing for the purchase of real estate.
A closing can fall through because of the improper or late filing of paperwork, or problems can occur due to the failure to properly obtain an appraisal. Should these or other errors & omissions result in financial losses for their customer, the customer may file claims for damages against your client.
Professional Liability insurance can provide the protection a broker needs to defend themselves against claims of alleged negligence as well as the financial resources necessary to pay any settlement or judgment. A mortgage loan can be complicated, meaning there is always going to be an opportunity for genuine or even perceived errors, which puts your client in a vulnerable position. The most important thing for your client to remember is that their general liability insurance alone will not protect them against any errors or omissions.
PLRisk Advisors is a leading wholesale insurance brokerage covering the professional liability market. Our team of seasoned professionals has the depth of knowledge to help our agency partners secure the best quality of coverage for their clients. We provide Professional Liability insurance products for a number of professionals, including mortgage brokers. For more information, contact us at (855) 403-5982.