Any business can benefit from a comprehensive insurance plan. From commercial crime liability to network and security insurance, business-related policies protect companies from expensive lawsuits. The best insurance for mortgage brokers is errors and omissions liability, which protects them from claims of negligence.
What Is Errors and Omissions Insurance?
When a company fails to provide the client with necessary information, whether on purpose or accidentally, the client may be able to file a lawsuit for negligence. Errors and omissions insurance covers the company when this happens so it is not responsible for the entire cost of the lawsuit. Without this type of insurance, the company would have to pay out of pocket for the lawsuit, regardless if the withholding of information was accidental.
Why are Errors and Omissions Insurance Important for Mortgage Brokers?
In the real estate business, information may be frequently withheld accidentally. Even if the real estate agent is unaware of a problem when they sell the home, a lawsuit could still potentially be filed. To protect people in the real estate field, this type of insurance is necessary to avoid lawsuits regarding professional negligence.
Having insurance for mortgage brokers can be one of the best ways to protect your business, especially if you work in the real estate industry. Errors and omissions insurance protects the company from lawsuits regarding miscommunication and the withholding of information.