Insurance for Mortgage BrokersGET INSTANT QUOTES
What is mortgage broker insurance?
As a mortgage broker it is important to have the right cover in place to shield you against common risks associated with your line of work. Insurance for mortgage brokers can protect you against claims of negligence, third-party property damage, business interruption and other events that could negatively impact your professional reputation or ability to do business. Without it, you could be personally liable for any damages or compensation that occurs which could potentially be devastating to your business.
Why do Mortgage Brokers need it?
As a Mortgage Broker working in a service-based business, your reputation is vital to your success. Your reputation can take years to build. In the event of an accusation of professional misconduct, negligence, or a breach of your duty of care, your reputation could come under threat. An allegation can be made against even the most careful professionals, leaving the business in a difficult position should it not be protected.
Did you Know?
An approved Mortgage Broker must have at least $1 million of cover.
Insurance for Mortgage Brokers
As a Mortgage Broker, you face a number of unique risks in the course of your day-to-day work. Thankfully, there is insurance cover available to help you manage these risks and protect your bank accounts and professional reputation.
Professional indemnity insurance protects professionals, like Mortgage Brokers, who offer advice and services to their clients. This can cover the cost of defending a negligence claim made against you and provides coverage for acts, errors or omissions that may result in your client suffering a financial loss.
Without professional indemnity insurance coverage, you could find yourself personally liable for any associated legal bills and the full cost of any claim made against you. Professional indemnity cover allows your business to operate with the confidence that you will be supported should a claim be made against your business.
What is covered?
A Professional Indemnity policy provides important cover for a variety of common civil liability claims that can arise when you’re offering a professional service or advice. These typically include:
- Misleading or negligent advice (including if a client misinterprets your advice)
- Breach of duty
- Defamation (i.e., libel or slander)
- Losing or damaging client documents
- Intellectual property infringement (including copyright infringement)
- Bodily injury or illness caused from the professional services covered under the policy
A Professional Indemnity policy typically provides protection against the above listed claims (and others) by covering costs and expenses related to the claim or resulting lawsuits. This usually includes:
- Defence and legal costs related to a claim
- Investigation costs (including those completed by a professional body)
- The cost of responding to a disciplinary inquiry
- Costs related to court attendance
- Damages and claimant costs awarded against you (such as settlements or judgements)
- Public relations costs
What is not covered?
While Professional Indemnity can help protect you in many ways, it does not cover:
- Intentional damage
- Acts of dishonesty or fraud
- Accidental injury and property damage
- Claims or events that are known before taking out insurance
Public liability insurance helps protect your business against claims of negligence which cause either physical injury which is not covered by the ACCC or property damage. Whether your business is conducted on or off site, it is crucial to safeguard your operations and processes. If you are found negligent and don’t have an insurance policy in place, you may face financial repercussions that can significantly impact your business. The cost of fighting a claim as well as the potential cost of a settlement could put you out of business. The right public liability cover can defend you against compensation claims and legal costs in the event of physical injury or property damage should they arise.
What is covered?
A Public Liability policy can help protect you and your small business against third-party claims of:
- Property damage (including financial loss resulting from third-party property damage)
- Financial loss resulting from damage caused by a faulty or defective product that you have manufactured or sold
- Inappropriate equipment installation that causes damage to property
- Injury, illness or death caused by your negligence that is not covered by the ACC
What is not covered?
The following are not covered by Public Liability insurance:
- Employee injuries
- Damage to your own property
- Personal injuries that are covered by the ACC
Protect your business today.
Business Insurance is designed to safeguard your contents and other physical assets (including your building if you own it) against unforeseen circumstances such as accidental damage, theft, fire, storm. You can also get cover for business interruption cover to help shield your business from financial losses that result from your business not being able to operate due to an insurable event.
Data is an integral part of many business operations. It’s unfortunate reality that simply being connected to the internet can open your business to the possibility of being exposed to hackers and unscrupulous users. Attacks on your system could lead to the shut-down of servers while data leaks can lead to unfortunate public relations consequences. These could lead to a loss of both profits and confidence in your company. Cyber liability helps you safeguard your business against data breaches, computer hacking, and other forms of cybercrime covered under your policy.
What is covered?
A Cyber Liability policy can help protect you against expensive cybercrime claims. Typically, this includes paying for:
- Investigating an event and recovering data
- Business interruptions
- Fines and penalties
- Extortion payments
- PR and crisis management activity
Statutory liability insurance helps defend your business and your employees against specific unintended breaches of New Zealand Acts of Parliament. It includes coverage for the costs of representation in investigations for alleged violations affecting commercial businesses, along with defense costs, fines or penalties that are payable following a conviction for an offense prescribed under an insured statute.
What is covered?
A Statutory Liability policy typically protects your business and employees by covering the following expenses:
- Defence costs related to alleged breaches of statutory acts affecting commercial activities
- Representation at an investigation or inquiry
- Fines or cash penalties following conviction for an offence under the insured statutes (unless the said Act forbids any fines and penalties to be insured)
How much does Insurance for Mortgage Brokers cost?
Your premium (the amount you regularly pay for an insurance policy) is based on a set of factors relating to your small business. As your answers to these questions are likely to be different than other Mortgage Brokers, your premium will probably differ as well.
Some of the factors used to calculate the cost of insurance for mortgage brokers may include:
- The size of your business – How many clients do you have? What are the size of these contracts?
- Where you are located – What area is your business based in? Where do you do business?
- Who is being covered – Who will be included on your policy? What are their qualifications?
- Your history of past claims – Have you made business insurance claims in the past?
- Your risk management plan – How will you help prevent future business insurance claims?
- How much cover you want or need – What amount of cover do you need to adequately protect your business? Are you required to maintain minimum levels of cover by law or a professional association?
To better understand how much you can expect to pay for insurance as a mortgage broker, you may find it helpful to compare multiple quotes from different insurers. You can do this quickly and easily with BizCover and get back to the business of helping your clients.
* * As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.
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Visit our Contact Us page, where you can find out how to get in touch with one of our business insurance professionals.
You can also access quick links to our self-service portal, where you can download your Certificate of Currency, update your payment details, amend your cover and download your policy documents.