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MORTGAGE COMPANY
PROFESSIONAL LIABILITY COVERAGE
INTRODUCTION
A professional liability policy insures professionals against loss arising from claims brought against them
by persons for whom the insured provides professional services. The policy typically provides a defense
and indemnity in connection with claims alleging errors and omissions. It is insurance that protects the
professional activities of those who have specialized knowledge or skills through education or experience.
Historically, such policies were issued mainly to professionals such as accountants, attorneys, doctors or
engineers, but the coverage can also apply to persons engaged in other specialized fields who desire
coverage for their wrongful acts
The Mortgage Company Professional Liability Policy (“MCPL policy”) provides errors and omissions
coverage to professionals and companies working in the real estate finance industry, such as mortgage
bankers and mortgage brokers. The policy provides defense and indemnity protection from claims that
may be brought by borrowers or other third parties for whom the insureds have provided services, such
as arranging, documenting and/or servicing mortgage loans. The coverage is provided for claims arising
from any alleged failure by the professional to perform, or to adequately perform, professional services
in connection with such work. The following is an overview of the coverage under the MCPL policy.
PROFESSIONAL LIABILITY COVERAGE · 4