One of the mortgage brokers main jobs is to help their customers close the deal on the house of their dreams. Because you earn their trust, your clients believe that you always want to protect them from any issues or complications that can arise in the mortgage process and their hope is that you’re going to get them the best deal possible on their home loans.
You certainly do your best to satisfy the needs of each and every client. If you make a professional mistake, and this can happen quite easily, your client may now decide to sue your company for any financial losses they endure and hardships that they believe you are responsible for. You are obligated to protect your company from these types of potential issues by carrying professional liability insurance for mortgage brokers.
This particular insurance coverage is also known as errors and omissions, or E&O coverage. It is designed to protect your company from financial and legal problems whenever lawsuits arise. Regardless of whether or not your company of makes a professional mistake, if a customer files a lawsuit alleging that you did, you must then address the issue. Dealing with this sort of legal action can ultimately cost your company in both time and money. Without the proper protection in place, you’ll wind up having to pay any money that was lost out of your own pocket.
Issues resulting in litigation
There are several exposures you must consider when engaging in business negotiations. For example, if your company accidentally forgets to sign and date a mortgage loan application on behalf of the client, the client may then lose out on the opportunity to purchase the home they were all set to buy.
They may wish to sue your company for pain and suffering as well as for financial losses if they are now forced to make a higher offer on the property. Professional liability insurance for mortgage brokers is the best solution to any legal or financial burdens that arise due to a lawsuit being filed against an entity or individual.