Mortgage Brokers are exposed to litigation claims for financial loss arising out of professional advice and guidance provided to their clients.
Professional Indemnity insurance is recommended for all practicing Mortgage Brokers and is generally required under law.
Professional Indemnity insurance offers financial protection for Mortgage Brokers against losses occurring out of negligent acts, errors and omissions in providing their services.
Why do Mortgage Brokers require professional indemnity insurance?
Mortgage Brokers are constantly doing work for and giving advice to clients, which includes facilitation of loans/financing.
A Mortgage Broker needs to be very efficient and meticulous in performing their duties. In the event that the Mortgage Broker is negligent, Professional Indemnity Insurance will contribute towards both legal fees incurred in defending a claim and any damages payable.