As a mortgage broker, you are adept at bringing mortgage borrowers and lenders together through negotiations. However, an unexpected lawsuit can halt your lucrative business when you least expect it.
This writeup will look at one of the tools mortgage brokers have in their toolbelt to protect their business, mortgage broker insurance. The following sections of this article will examine the coverage and costs of a good mortgage broker insurance policy that you need to protect and boost income.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
Your mortgage broker insurance will need to protect your business against liability costs. One policy you can use to protect yourself is general liability insurance. This policy will help protect you from third-party liability claims to your mortgage broker business related to injury and property damage.
One of the customers you are negotiating for slips and falls while in your office
A member of the public enters your mortgage broker's office, and breaks their cell phone
Additional insured: You can add parties to get coverage under your mortgage broker's general liability insurance
Excess liability: Extends the limit of your general liability insurance for mortgage brokers beyond the limits of your existing policy
Mortgage brokers will see a typical general liability insurance limit between $1-2 million in overall coverage.
No. General liability insurance only offers third-party liability protection. To compensate for damage to your business property, you will need a commercial property insurance policy.
| CoverWallet (Best) | NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Yes | No |
Mortgage broker professional liability insurance, also known errors and omissions insurance for mortgage brokers, protects your business from mistakes, oversights, and negligence that may happen during your mortgage broker business services.
You make a mistake on a mortgage document that causes your client a financial loss
A client sues your mortgage business for wrongful local application counseling
Your mortgage broker errors and omission insurance can be customized through add-ons extending or broadening your coverage. Examples include:
Media liability: Adds protection to liability claims that result from your mortgage broker business’s published content on social media, the internet, and other media sources
Excess liability: Allows you to fortify your mortgage broker insurance by extending the professional liability insurance coverage limit beyond what it would normally have
A mortgage broker's E&O insurance coverage limit will generally be around $1 million in coverage. Higher limits may be available depending on who you buy insurance from.
| CoverWallet (Best) | NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
Media liability coverage protects your business from lawsuits from the information you disseminate online through advertisements, blogs, and social media posts. This is an essential policy to protect your business from the consequences of social media posts. Social media posts can be an excellent way to engage directly with your customer and share stories, but they can also cause legal trouble if someone feels you have posted libel about them.
You publish information on your website that someone sues you for over privacy concerns
A member of the public sues your mortgage business over defamatory remarks made over social media
Typical coverage limits for media liability insurance range between $500,000 and $1 million.
Certain exclusions will typically appear in media liability insurance policies. These include criminal acts, property damage, patent infringement, breach of contract, and employment practices.
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| CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $340,000 | $25,000/$500,000 | $35,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $35,000 | $25,000/$500,000 | $35,000 | $15,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Included |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Excluded | Included |
| Money and securities | Excluded | $2,500 | $1,000 | Excluded | Included |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Included |
| Business interruption floater | Excluded | Included | Included | Excluded | Included |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Included |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded | Excluded |
Mortgage brokers will use commercial property insurance to protect their business buildings and property against damage from covered events like fires, vandalism, and robbers. This policy covers your business property contained within a radius of your building, like materials, tools, equipment, computers, and more. This policy can cover owned and rented buildings where you conduct your business operations.
Your mortgage broker's office has its windows broken by an act of vandalism.
A fire starts near your office and damages a part of your mortgage broker's office building.
Earthquake insurance: Offers protection for earth-movement perils that often get excluded from many insurance policies
Flood insurance: Protects your mortgage office and contained property from water and flooding damage perils
Your commercial property coverage limit will be around $60,000. This will cover your building and commercial property.
Temporary location coverage is a commercial property policy that can help you pay for a temporary office or facility when your regular business building is being repaired for damage. It can also protect any business property you must store at this temporary location.
| CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
|---|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $320,000 | $25,000/$500,000 | $35,000 | $75,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
A mortgage broker’s business owner’s policy protects their business with the combined general liability and commercial property insurance coverages. These policies can be fortified further with additional policies and will often include policies like business interruption insurance.
A customer hurts their leg while on your office premises
One of your clients sues you for property damage that occurs on your business premises
Your business property is damaged in a storm
Commercial crime: A policy that protects your business from the consequences of dishonest employee actions like stealing, forgery, and cyber crimes.
Workers comp: Some insurers offer workers comp as additional coverage that you add to your business owner’s policy. This policy protects your mortgage employees against the costs of illness and injury.
A BOP will typically offer general liability coverage of $1 million. Your commercial property coverage will have $50,000 for your mortgage broker building and $50,000 for any commercial property.
Yes. A business owner’s policy combines multiple coverages into one policy. This means that by using a business owner’s policy, you will often pay less for policies than you would if you bought the coverage separately.
Commercial auto insurance will financially protect you from the consequences of using vehicles for business-related purposes. This policy protects your business from the liabilities associated with vehicle accidents. It can also help pay for damage to vehicles you own. Commercial auto insurance will have standard coverages, which include:
Collision: This policy confers protection to business vehicles when damaged in road accidents and collisions
Comprehensive: A catch-all damage protection policy for vehicles that covers many forms of physical damage that do not occur on the road
Auto-liability: Protects your business from liabilities your business vehicle may cause to others from operating on the road
A vehicle you use in your business gets into a car crash while performing a business-related activity
You are found liable for paying for injuries to others that your business vehicle causes in an accident
Rental reimbursement: This helps you pay the expenses for rental cars you may use while one of your business vehicles is getting repairs
Uninsured motorist: This coverage helps you pay for damage that another motorist's lack of insurance cannot cover
Commercial auto insurance will offer liability coverage between $100,000 and $1 million for mortgage brokers.
Yes. All of your business employees with a valid license can drive your business vehicle and still get protection under a commercial auto insurance policy. This policy will also cover additional insureds you add to your commercial auto policy.
Workers' compensation insurance will protect your mortgage broker employees with benefits like wage replacement and medical payments when they receive an injury or get sick while working. This policy will pay for medical treatments until your employee has reached full recovery and can return to work. Workers compensation insurance may include employer’s liability coverage, which will protect you from lawsuits your employees levy against you due to workplace injuries.
An employee working for you hurts their hip while performing work duties
While working at their desk for long periods, one of your employees develops carpal tunnel syndrome and cannot work for extended periods on some tasks
For most workers comp policies, only salaried employees will be eligible for workers comp. This means that any contractors or freelancers you use in your business will not receive workers comp coverage.
Texas is the only state in the US that does not require businesses to have workers’ compensation insurance for some of their employees. Most other states require companies with a certain amount of employees to purchase workers' compensation coverage to protect them.
Excess liability insurance can fortify a mortgage broker's existing primary policy with additional protection once that policy has run out of coverage. This policy does not increase the events covered by a policy; it merely increases the coverage amount. Having an excess liability policy is like having an insurance policy for your insurance policy. With an excess liability policy, you can vastly exceed the typical limits of an insurance policy based on how much you purchase.
Your general liability policy has exhausted coverage, so you supplement it with an excess liability insurance policy
A prohibitively expensive lawsuit forces you to beef up your professional liability insurance with an excess liability policy
Excess liability insurance is purchased in increments that can go up to $25 million or more, depending on your insurer's financial strength.
Buffer liability policies protect the gap between your primary layer coverage and your excess liability insurance coverage. Excess liability insurance policies will typically kick in after a specific dollar amount, so you may need buffer liability to cover any gap created if your primary policy limit is not high enough.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $25 | $300 | $0-$500 |
| Professional liability insurance | $32 | $384 | $500-$1,000 |
| Commercial property insurance | $42 | $504 | $1,000-$2,000 |
| Business owner's policy | $70 | $840 | $1,500 |
| Workers compensation insurance | $82 | $984 | $2,000-$5,000 |
| Commercial auto insurance | $49 | $588 | $500-$1,000 |
| Excess liability insurance | $76 | $912 | $500-$1,000 |
The average mortgage broker insurance cost is $25 per month or $300 per year for a $1 million general liability insurance policy. Factors that affect premiums are claims history, business history, policy limits, deductibles, and more. The table below shows the cost of a $1 million general liability policy from the best companies:
| Company | Cost per Month | Cost per Year | Best for |
|---|---|---|---|
| NEXT | $25 | $300 | Best overall; Fastest general liability insurance for mortgage brokers |
| The Hartford | $27 | $324 | Customizable insurance |
| CoverWallet | $40 | $480 | Comparing mortgage broker insurance quotes online |
| Tivly | $44 | $528 | Comparing mortgage broker insurance quotes over the phone |
| Thimble | $50 | $600 | On-demand mortgage broker insurance |
| Hiscox | $70 | $840 | Discounts for bundling mortgage broker insurance policies |
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Below we have reviews of some of the best companies that offer competitive mortgage broker insurance. Read on to know their pros, cons, and average cost for a $1 million general liability policy:
Get a mortgage broker insurance quote in just 10 minutes
Offers a mobile app to help you manage your insurance policy
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
No applicable cons for mortgage broker insurance
NEXT offers policies like commercial auto, workers comp, and general liability. This insurer has a dedicated webpage for mortgage broker insurance that helps you understand the risks to your business, from legal fees and other accidents. Next has an A- financial strength rating from AM Best and a B+ Better Business Bureau customer score.
Best for: Best overall; Fastest general liability insurance for mortgage brokers
Average cost: $25 per month
Our rating: 10/10
Serves over one million small business customers
A- rating from AM Best
Insurance benefits for AARP members
Buying process for your insurance can be lengthier than other insurers.
The Hartford offers insurance policies backed by 200 years of underwriting expertise and industry experience. You can add policies like commercial auto, professional liability, business owner’s policy, and cyber insurance. The Hartford managed to secure an A+ rating from the Better Business Bureau. With their wide range of options, you can often get all your policies just from The Hartford.
Best for: Customizable insurance
Average cost: $27 per month
Our rating: 10/10
Compare rates from different A-rated insurers
deal for busy business owners who want to save time by comparison shopping
Manage multiple policies from multiple insurers from one location
Doesn’t provide any policies themselves
CoverWallet helps you get coverage for general liability, cyber liability, business owner’s policy, and workers' compensation insurance. They offer over 30 different types of insurance from over ten insurance partners. You can get convenient quotes combined with an easy-to-use insurance platform.
Best for: Comparing mortgage broker insurance quotes online
Average cost: $40 per month
Our rating: 10/10
4-second phone answer rate for customer service
Customize policies to meet your unique needs
Helps connect you with insurers that know your business
Compare quotes with multiple insurance companies
Limited tools to manage multiple policies compared to others
Tivly is a place to buy insurance from over 200 providers. This company helps you quickly get matched with an insurance company that offers what you need for your mortgage broker business so you can get back to helping clients get the best negotiation for their loans. Tivly is a trusted insurer with an A rating from the Better Business Bureau. Call now to compare quotes over the phone.
Best for: Comparing mortgage broker insurance quotes over the phone
Average cost: $44 per month
Our rating: 10/10
Lots of general liability insurance add-ons
Better Business Bureau accredited with an A+ rating
Easy to use
Coverage is limited in some areas
Thimble offers flexible insurance policies that allow you to set the duration to the month, day, or hour. They have general liability insurance policies underwritten by Markel Insurance, with a financial strength rating of A from AM Best. Thimble itself is an accredited Better Business Bureau company that has a high rating in its customer reviews.
Best for: On-demand mortgage broker insurance
Average cost: $50 per month
Our rating: 10/10
14-day refund policy
5% discount when you bundle extra policies
Passionate insurance agents and representatives
Customize your insurance with help from experienced professionals
Does not offer a local agent network for customers
Hiscox allows you to get a mortgage broker insurance estimate within minutes and helps you with a guide to making the claims process simple. This company serves the needs of over 500,000 customers and boasts an A rating from AM Best. At Hiscox, you can choose between mortgage brokers’ insurance policies like general liability, professional liability, workers' compensation, and commercial property insurance.
Best for: Discounts for bundling mortgage broker insurance policies
Average cost: $70 per month
Our rating: 10/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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