Does a Mortgage Brokerage require errors and omissions insurance?
Each Mortgage Brokerage requires errors and omissions insurance with extended coverage for fraudulent acts. Under the MBLAA, brokerages must have errors and omissions (E&O) insurance covering a minimum of $500,000 in respect of any one occurrence and $1 million in respect of all occurrences in a given year involving the corporation or any mortgage broker or agent authorized to deal or trade in mortgages on its behalf. If the brokerage is also applying for an administrator licence, the administrator must also have errors and omissions (E&O) insurance in the amounts noted above to separately cover the administrator licence.
Related Questions
- My mortgage brokerage also holds a mortgage administrator licence. Do I need two errors and omissions insurance policies?
- Do Mortgage Agents and Brokers require separate errors and omissions insurance from their Mortgage Brokerage?
- Does a Mortgage Administrator require separate errors and omissions insurance?
