There are inherent risks in all businesses, but mortgage bankers and finance companies must protect against particular risks associated with the lending business. For that reason we offer insurance tailored for mortgage bankers and finance companies.
- Mortgage banking businesses specialize in providing real estate loans to their customers. Loan money originates from the mortgage banker or an outside lender utilized by the mortgage banker. Mortgage bankers may also service escrows, sell mortgage loans to investors and service real estate construction loans.
- Finance companies are financial institutions that specialize in providing a variety of loans to individuals and businesses. Their services may include real estate loans, automobile loans and short-term personal loans to individuals; they may also provide loans to manufacturers and wholesalers. Finance companies may also service escrows.
Mortgage bankers who conduct business on their premises can face liability lawsuits resulting from trip/slip/fall and other injuries. Say a customer entering the building trips on the foyer floor mat and injures him or herself. The bank is liable for the medical costs the client incurs, which could include expensive surgery and/or physical therapy. The client might even sue if the fall was due to neglect of the condition or position of floor mat.
Workers’ Compensation risks for mortgage bankers are typically limited to injuries due to the repetitive movements during clerical duties. Back injuries may also occur in office environments resulting from the lifting and moving of furniture, file boxes, supplies, equipment, etc. For Example, Worker’s Compensation would cover the medical costs and lost wages of a worker needing surgery to correct carpal tunnel syndrome that resulted from the repeated motion of typing on the computer keyboard.
Also known as Professional Liability Insurance, Errors and Omissions Insurance protects finance companies and individual mortgage bankers and from claims made by clients for errors, incompetent work or negligence. For example, an employee could mistakenly open an email that contains a Trojan or virus that allows a hacker access to client information or funds. Such mistakes made by employees could result in liability for your financial institution.
If employees are required to drive vehicles for business purposes, whether owned by the company or the employees, then auto liability risks are a concern. For example, say the receptionist drives her car to the post office for company business and backs into a parking lot lamppost. The Business Auto policy would cover the cost of repairing the damages to both the car and the lamppost.
As in any office setting, there is a risk of fire occurring or damage to property from severe weather such as flash flooding, tornado or lightening. For example, lightning could strike the building and not only damage the electrical system, but also spark a fire. The costs of repairing damages to the building and replacement of furniture and equipment would be covered.
Incidents of theft by employees, computer fraud or any financial transaction that is not monitored by an outside source can result in monetary loss. Unfortunately, dishonest employees do use client information such as social security numbers or other identifying information to gain access to their money or steal their identities.