Georgia Mortgage Broker Insurance Policy Information
Georgia Mortgage Broker Insurance. Mortgage companies are financial institutions that lend funds for purchases of residential and business real estate. The mortgage is paid back over time with interest until the loan is paid off and the purchaser owns the property. If the money is not paid back, the mortgage company can foreclose on the loan and sell the property to recoup their investment.
Mortgage companies earn income from interest charged on loans, profits from investments, and transaction fees. They also service escrow accounts, may be involved in real estate services and transactions, or broker and sell mortgage loans to other operations. Mortgage companies are subject to both federal and state regulation.
Mortgage brokers assist their customers acquire their own homes. Your clients depend on you to guide them from any complications that arise in the mortgage process and trust you to give them the best possible deal on their loans. If you make professional mistakes, your clients may sue your brokerage company for financial loss and hardship you caused.
Protect your brokerage company from potential risks as well as other business risks with Georgia mortgage broker insurance.
Georgia mortgage broker insurance protects your loan business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Why Insurance Is Important for Mortgage Broker Firms
Below is a list of the most commonly purchased insurance policies by GA mortgage brokers. These primary policies can be tailored to suit the needs of your mortgage brokerage business. That way, you end up with a customized Georgia mortgage broker insurance plan - with no unneeded coverage and no extra fees:
Professional Liability: Professional liability also know as errors and omissions (E&O) coverage protects mortgage brokers from claims made against them for negligence while in the process of providing their services. Even if you are the most careful broker, you can have allegations made against you which could leave you in a difficult situation financially if you are not protected. Mortgage brokers may be sued as a result of advice on:
- Mortgage Brokering
- Finance Brokering
- Debt Management Services
- Mortgage Origination
- Mortgage Aggregation Services
General Liability: General liability will cover your firm for a variety of claims including bodily injury, property damage, personal injury, injury to a third party and other accidents that commonly arise when providing your services. These accidents could be as simple as slipping on a wet floor or dropping your computer monitor when moving desks. When accidents happen Georgia mortgage broker insurance should cover it.
Workers Compensation: This provides insurance to employees who are injured when working on your firm. It provides wage replacement and medical benefits to them. In exchange for these benefits, the employee gives up his rights to sue you for the incident. State laws will vary, but most states require you to have workers compensation if you have employees.
Directors and Officers Liability: Corporate transparency and accountability are critical to your brokerage firms success. With regulatory mandates and shareholder activism making social media and headline news, each decision your directors and officers make can quickly be judged under the public microscope. If a worst-case situation arises, your firm may face litigation as a direct result of your boards decisions. Directors and Officers Insurance will cover the legal costs to defend the individual directors and officers.
Commercial Property: Depending on your location, your brokerage firms office is exposed to many types of risks, including fire, flood, natural disasters, and extreme weather conditions like snowstorms or hail storms. Aside from taking necessary steps to protect your brokerage firm you should also be prepared for events you can't prevent. Do this by getting Georgia mortgage broker insurance. A property policy covers buildings and personal property owned by your business. It also covers property owned by others that you use in your business. This way your buildings and contents are covered which reduces the loss of your business assets.
There are two types of commercial property insurance: all-risk and peril-specific. An all-risk policy will cover a large range of incidents except for those noted in the policy. A peril-specific policy will cover any incidents that are listed in the Georgia mortgage broker insurance policy.
Business Owners Policy (BOP): If you have a GA small business and don't want to buy all insurance coverages separately, you can opt for this package, which combines typical coverages into one standard package. It is offered at premiums lower than if each coverage was purchased separately. Typically, BOPs consist of property, general liability, vehicles, business interruption and other types of coverages for risks common to brokerage businesses.
Umbrella Policy: Umbrella liability provides extra peace of mind for you and your firm. It covers losses above and beyond those of underlying policies such as general liability insurance. As an added benefit, coverage afforded by umbrella insurance is sometimes broader than that of underlying policies.
GA Mortgage Banking's Risks & Exposures
Premises liability exposure is limited if the mortgage company carries out all transactions over the phone or at the client's business, home, or other locations. If clients do come to the premises, the condition of the area open to the public is a prime concern as visitors may be injured from slips or falls. Floors need to be in good condition, with steps and uneven floor surfaces prominently marked. The number of exits must be sufficient and well-marked, with backup lighting in the event of a power failure.
Steps should have handrails, be well-lighted, marked, and in good repair. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. There should be security in the parking lot equal to or better than the surrounding area. Personal injury exposure arises from breaches of customers' privacy and confidentiality of their financial records and discrimination in lending practices.
Directors' and officers' exposure can be substantial due to competing priorities of numerous stakeholders including stockholders, bondholders, depositors, mortgageholders, employees, and regulators. Directors and officers are more likely to be sued for results of their decisions in times of economic downturn and well-publicized excesses within the financial services industry. Mortgage companies may offer escrow fund handling and other financial activities.
Directors and officers can be sued if funds from any of these are mismanaged. Officers must be thoroughly knowledgeable about the mortgage lending business, able to operate competitively while maintaining profitability, and able to oversee ongoing operations effectively. Directors should include representation from a wide variety of business interests with no conflicts of interest.
Errors and omissions exposures are possible during any mortgage transaction. There must be checks and balances in place to quickly catch and fix errors that are made. The background and training of all professional-level employees must be thorough and continual to keep up-to-date with industry changes. Monitoring is necessary. In servicing mortgages, the mortgage company must verify that all mortgaged properties have hazard insurance. A mortgage errors and omissions policy provides blanket coverage for any inadvertent omission.
Workers compensation exposures are light as mortgage companies keep little cash on the premises and are therefore less attractive for holdups than other financial institutions. As most work is done on computers, employees are exposed to eyestrain, neck strain, and repetitive motion injuries including carpal tunnel syndrome. All workstations should be ergonomically designed to reduce the chance of such injuries.
Property exposures are primarily from fire due to the electrical wiring for computers, printers and other electronic office equipment, heating, and air conditioning systems. All wiring must meet current codes, be well maintained, and be adequate for the company's operations. Circuitry on electronic equipment may be easily damaged from smoke, water, and heat, which will cause a total loss even with a small fire. Extra expense coverage should be considered as the company must continue operations after a loss.
Crime exposure is primarily from employee dishonesty, either from theft or from the improper transfer of funds held for customers. Mortgage companies need a Financial Institutions Bond to cover this and other crime exposures. Background checks should be conducted for anyone who will have access to the accounts. There must be regular monitoring and auditing of the books by outside auditors to prevent and identify problems. All employees must take at least one continuous week of vacation a year. Controls and programming to prevent computer fraud should be reviewed. Extortion is a growing concern due to the high value of assets held by mortgage companies.
Inland marine exposures are from accounts receivable for billings to customers, computers used for tracking financial data, and valuable papers and records for customers' and regulatory information. Backup copies of all records, including computer records, should be made and stored off premises for ease of restoration in the event of a loss.
Commercial auto exposures may be limited to hired and non-owned for employees running errands. If the company provides vehicles to officers or key employees, policies should be in place for personal and permitted use of the vehicles. Any driver must have a valid driver's license and acceptable MVR. Vehicles must be well maintained with records kept in a central location.
GA Mortgage Broker Insurance
You must be a qualified GA mortgage broker. You must also be able to provide proof that you have all the necessary professional training and education required to practice this profession. There are numerous components involved in processing a loan - all of which could lead to a claim if a customer emerges unsatisfied. Running your mortgage brokerage firm also presents various business risks. The smart mortgage professional recognizes these risks, and insures themselves with a comprehensive mortgage broker insurance plan.
Georgia Economic Data & Business Insurance Information
Have a great idea for a small business and want to setup shop in Georgia? If so, before you start pursuing a commercial property and hiring employees, you want to make sure that the Peach State will support your industry to ensure your success. It's also a wise idea to familiarize yourself with the rules and regulations that the state has in place for business owners, such as the regulations and limits that pertain to commercial insurance. Below, we offer invaluable information about business development in the state of Georgia so that you venture can be as successful as possible.
Business Economic Trends In The State Of Georgia
In the past few years, there has been a definite uptick in job growth in the state of Georgia; however, in recent months, it seems that growth has become stagnant. In fact, according to the Bureau of Labor Statistics, as of May 2022, the unemployment rate in Georgia was 3.8%; 0.2% higher than the national average during the same time, which was 3.6%.
Despite stagnation in job growth and the slightly higher unemployment rate compared to the national average, more people are employed in Georgia in 2022 than were just a few years ago; in fact, in recent years, job growth has been at an all-time high.
If you're thinking about starting a business in Georgia, you're in luck; according to recent research, the state is one of the most attractive among entrepreneurs in the nation. Atlanta was voted the seventh best city in the US to launch a venture. Low living costs, business-friendly laws, and a wealth of easy to access resources have all made the Peach State a prime location for those business-minded individuals.
There are several industries that offer the potential for great success in the state, including:
- Solar Energy
Commercial Insurance Regulations and Limits in GA
The Georgia Department of Insurance regulates insurance in Georgia. Like most states, Workers' compensation is also mandated in the state of Georgia; for business that employ three or more employees, you will need to carry this type of coverage.
If you use motor vehicles for business-related purposes, you'll also need to invest in commercial auto insurance coverage to protect your drivers, as well as other drivers on the road.
Additional Resources For Financial Institutions Insurance
Discover the types of commercial insurance that banks, finance companies and other financial institutions need to protect their asset management, deposit, lending, investment and other operations.
- Check Cashing
- Credit Union
- Currency Exchanges
- Finance Companies
- Insurance Company
- Mortgage Broker
Financial institutions handle, receive, disburse, and invest money of others.
They are subject to regulations specific to their operation but they are also subject to legal and moral obligations for their customers.
Customers entrust their funds to these institutions because of their confidence in the management's ability.
Insurance is a necessary means to protect the financial institutions and their customers against various types of losses.
The financial services offered and the personal relationships created by the institution can only be protected through the use of a sound insurance program and appropriate bonding practices.
Minimum recommended small business insurance coverage: Business Personal Property, Extra Expense, Equipment Breakdown, Financial Institutions Bond, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Directors' and Officers' Liability, Employee Benefits, Fiduciary Liability, Professional, Umbrella, Hired and Non-Owned Auto, Workers Compensation & Surety Bonds.
Other commercial insurance policies to consider: Buildings, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Extortion, Fine Arts, Signs, Cyber Liability, Employment-related Practices, Law Enforcement Professional, Business Auto Liability and Physical Damage And Stop Gap Liability.
Request a free Georgia Mortgage Broker insurance quote in Acworth, Albany, Alpharetta, Americus, Athens, Atlanta, Augusta, Bainbridge, Belvedere Park, Brookhaven, Brunswick, Buford, Calhoun, Candler-McAfee, Canton, Carrollton, Cartersville, Chamblee, Clarkston, College Park, Columbus, Conyers, Cordele, Covington, Cusseta, Dallas, Dalton and Hinesville, Decatur, Douglas, Douglasville, Druid Hills, Dublin, Duluth, Dunwoody, East Point, Evans, Fairburn, Fayetteville, Forest Park, Gainesville, Georgetown, Griffin, Grovetown, Holly Springs, Johns Creek, Kennesaw, Kingsland, LaGrange, Lawrenceville, Lilburn, Lithia Springs, Loganville, Mableton, Macon-Bibb County, Marietta, Martinez, McDonough, Milledgeville, Milton, Monroe, Moultrie, Mountain Park CDP, Newnan, Norcross, North Decatur, North Druid Hills, Panthersville, Peachtree City, Peachtree Corners, Perry, Pooler, Powder Springs, Redan, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Smyrna, Snellville, St. Marys, St. Simons, Statesboro, Stockbridge, Stonecrest, Sugar Hill, Suwanee, Thomasville, Tifton, Tucker, Union City, Valdosta, Villa Rica, Vinings, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock and all other GA cities & Georgia counties near me in The Peach State.
Also find GA local small businesses by General Liability Class Code and learn about Georgia small business insurance requirements for general liability, business property, commercial auto & workers compensation including GA business insurance costs. Call us (470) 440-6263.