E.L.M. Insurance Brokers Inc., a specialist in professional liability, has tailored a new, comprehensive program for mortgage bankers and mortgage brokers that includes errors & omissions and financial institution bond coverages. The program has capacity of $25 million for both the E&O and the bond, and multi-year programs are available for both coverages.
The E&O liability form includes the following:
· Coverage for commercial, multi-family and residential mortgage loan activity.
· Standard mortgage impairment coverage.
· Optional Employment Practices Liability (EPL) coverage and loss prevention program.
· $250,000 in punitive damages coverage (where insurable by law).
· Coverage for independent contractors.
· No repurchase exclusion.
· No exclusions for emotional distress or mental anguish.
· No exclusion for claims arising from fees or charges.
Highlights of the Financial Institution Bond are as follows:
· The broadened fidelity agreement eliminates the need for a minimal financial benefit.
· Fraudulent document coverage for any loss suffered by the mortgage banker as a result of false information provided by a mortgage applicant.
· Computer fraud coverage.
· Claims expense coverage that pays the cost of a professional audit by a CPA if the audit determines that a loss actually occurred.
· Trading coverage.
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