Why do mortgage brokers need insurance?
Running a mortgage brokerage can be highly lucrative, but that reward comes with risks. Mortgage broker insurance protects your business from damaging lawsuits and expenses from injuries, property theft, cyberattacks, and mistakes in paperwork or calculations.
Find the right coverage
Insureon helps mortgage brokers find insurance quotes that match their unique risks.
Get free expert advice and peace of mind knowing you have the right protection for your small business.
What types of business insurance do mortgage brokers need?
These policies cover the most common risks faced by mortgage brokers.
Errors and omissions insurance
This policy covers legal defense costs related to errors and oversights, such as a mistake on a mortgage loan document. It's also called E&O insurance or professional liability insurance.
- Late or erroneous paperwork
- Accusations of negligence
- Contract disputes with lenders and borrowers
General liability insurance
This policy covers basic third-party risks, such as a customer's slip-and-fall injury in your office. Bundle it with commercial property insurance for savings in a business owner’s policy.
- Customer bodily injuries
- Damaged customer property
- Libel and other advertising injuries
Workers’ compensation insurance
Most states require workers' comp for mortgage companies that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Lawsuits over employee injuries
Business owner’s policy
A BOP bundles commercial property insurance and general liability coverage in one plan. It's one of the most cost-effective commercial insurance policies for a mortgage broker.
- Customer injuries
- Damaged customer property
- Business property damage and theft
Commercial auto insurance
This policy covers financial losses related to business vehicle accidents. Each state has its own requirements for auto liability insurance.
- Property damage caused by your vehicle
- Auto accident injuries
- Vehicle theft and vandalism
Cyber insurance
This policy helps mortgage brokers recover from data breaches and cyberattacks. It's strongly recommended for financial institutions that handle sensitive information.
- Client notification expenses
- Fraud monitoring services
- Data breach investigations
How much does insurance cost for real estate professionals?
A small real estate business will pay less for insurance than a larger company.
Factors that affect premiums include:
- Real estate services offered
- Business property and equipment
- Business income
- Types of insurance purchased
- Policy limits and deductibles
How do I get mortgage broker insurance?
It's easy to get mortgage broker business insurance and surety bonds if you have your company information on hand. Our application will ask for basic facts about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application
- Compare insurance quotes and choose policies
- Pay for your policy and download a certificate
Insureon's licensed insurance agents work with top-rated U.S. providers to find the right insurance coverage for your brokerage firm, whether you work independently or hire employees.
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