Why do Mortgage and Finance Brokers need it?
Mortgage and Finance Brokers may face allegations of loss as a result of advice provided on areas such as business management, expert opinion and financial planning. Professional Indemnity insurance is designed to protect Mortgage and Finance brokers from claims made against them while in the process of carrying out their business – ASIC makes it compulsory to have a minimum of $2m Professional Indemnity cover. Both the Mortgage and Finance Association of Australia (MFAA) and individual Mortgage Aggregators Associations require current insurance as a term of membership.
What are the risk factors?
- Allegations of professional negligence
- Provision of inadequate, incorrect or misleading advice
- Fraud and dishonesty
3 things to consider when purchasing a Professional Indemnity policy:
Find a provider that:
- Offers multiple quotes from trusted Australian insures and guarantees the best price on the market
- Complies with the current legislation and professional association requirements – make sure your policy is compliant with ASIC RG210 Legislation
- Understands the coverage needs of Mortgage and Finance Brokers