Business Insurance Tips For Mortgage Brokers

against brokerage firms relate to mismanagement of funds which is covered by a specialized insurance policy. This is why it’s important to consult with a legal professional before purchasing an insurance plan.

Brokerage firms should carefully analyze the limit of liability they purchase to ensure that they will not have to pay damages out of pocket. Mortgage and brokerage litigation tends to result in astronomical legal fees for both sides. Commercial brokers can purchase various limits of insurance with the minimum limit recommended being ,000,000 with higher limits being available depending upon the size of company.

Optimize Your Legal Team

Some liability policies offer dollar one defense coverage with no policy deductible. This will mean that the insurance will pay for cost of legal defense for your insurance claim up to the policy limit. The insurance policy you purchase may offer you the ability to choose your own lawyer, or they may require you to use the insurance company appointed lawyer.

Most mortgage and brokerage firms should also try to incorporate full prior acts coverage. D&O and E&O policies only cover claims for acts that occur and are reported after the policy inception date.

These policies include a retroactive date or prior and pending litigation date.  This will mean that the insurance company will provide coverage for you from the day your insurance policy started.  Be wary if you are