Professional Liability Coverages

Spiro Risk Management, Inc. offers all forms of professional coverages designed especially for mortgage bankers. These products offer protection from liability problems that might occur in the day-to-day originating, warehousing or servicing of loans.

Mortgage Bankers’ Blanket Bond

Mortgage Bankers’ Blanket Bond provides a wide array of coverages. Designed to thoroughly protect the mortgage banker from problems which may occur as a result of typical operations, Mortgage Bankers’ Blanket Bond covers the following:
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 Fidelity or employee dishonesty, such as theft or embezzlement.
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 Loss from the insured’s premises due to robbery, burglary or larceny.
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 The disappearance of electronic or written certified securities, while in transit, due to robbery, larceny or misplacement.
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 Forgery or alteration of negotiable instruments.
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 Altered, lost or stolen securities including certificates, deeds or mortgages.
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 Unintentional receipt of counterfeit U.S. or foreign currency.
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 Fees paid to accountants or consultants, excluding attorneys, to assess the extent of financial loss to the mortgage banker in the event of such an occurrence.
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Real estate documents and peripheral instruments including mortgage applications, trust deeds, title policies and verification of employment.
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 Loss as a result of data entry into the mortgage banker’s propriety computer system.
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 Any instruments received or acted upon in good faith but rendered invalid due to fraud.
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 Loss resulting directly or indirectly from trading in a genuine or fictitious account.

Errors & Omissions

Many aspects of mortgage origination can create the potential for loss to the banker, of which errors and omissions is the largest exposure. Bankers Professional Liability covers the lender in the capacity of managing daily operations such as loan accounting, warehousing, and other paperwork typically excluded from standard insurance contracts.

Lender’s Liability

 Protection against discrimination claims by borrowers or prospective borrowers pertaining to the lending process and granting mortgages.

Mortgage Impairment

Mortgage Impairment covers a number of loan origination and servicing components often required by secondary markets:

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 Errors and omissions in the verification of borrower’s insurance at closing.
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 The banker’s handling of real estate taxes, flood determinations, GNMA guidelines, FHA, SBA and private mortgage guarantee organizations’ requirements.
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 Physical damage insurance to a property if there is no coverage in place

Director’s and Officer’s Liability

 Covers negligent and wrongful acts, including errors and omissions by corporate executives, resulting in damages to the mortgage banker or loss to a third party.

Employment Practices Liability
Covers employment issues such as discrimination against current or prospective employees, wrongful termination or sexual harassment.

Please note that the coverage summaries provided are for promotional purposes only. For a complete product presentation with additional information please call us. Our staff is ready to assist you.



 




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