In every industry, there is the potential for something to go wrong with a customer transaction. In the medical field, accidental negligence falls under malpractice claims. In the insurance industry, errors and omissions account for this area of professional liability.
The Dangers of the Business
Even though a brokerage service seems to be a desk job that issues paperwork, the business is still fraught with risks. With a mortgage broker E&O policy, some of the risks can be mitigated. A number of claims could arise from disgruntled clients, such as discrimination, misleading information, breach of contract, or fraud. Even if a claim can be refuted with evidence, the cost to mount your defense and prepare for a court hearing can damage your financial stability. Insurance offers the monetary resources you need to operate in today’s fluctuating real estate market.
The Dangers of Poor Coverage
Having insurance isn’t where your responsibility ends. Not having enough coverage is just as dangerous as not having coverage at all. Not many brokers have the financial support to hire lawyers, pay for damages, and try to rebuild their reputation. It could mean you have to sell your assets in order to pay for a settlement won against you. Evaluate your risks and come with ways to reduce the potential for errors or negligence. A risk management strategy, combined with comprehensive insurance, can help keep your business alive.