My mortgage brokerage also holds a mortgage administrator licence. Do I need two errors and omissions insurance policies?
Businesses that are dually licensed as both a mortgage brokerage and administrator have the flexibility of choosing either one of the following options in arranging their errors and omissions (E&O) insurance coverage: a) Obtain separate E&O insurance policies for their mortgage brokerage and administrator activities. Each policy must provide coverage of at least $500,000 in respect of any one occurrence and $1 million in respect of all occurrences in a given year. OR b) Obtain one E&O insurance policy that covers business activities of both the mortgage brokerage and administrator. This policy must provide coverage of at least $1 million in respect of any one occurrence and $2 million in respect of all occurrences in a given year. The combined policy may, but is not required, to allocate these limits between the mortgage brokerage and administrator. If there is no separation of limits between the two types of business, the total amount of coverage may be available to pay claims as need
