Companies that loan money, especially commercial lending companies, take on a certain amount of risk with each loan they approve. Because there is always a chance they will not get part or any of their money back, insurance is necessary for any company offering loans. There are many types of lending insurance that can minimize your risk.
When you accept a house as collateral for a loan, you need to make sure there is sufficient home owners insurance on the residence. In many cases, homeowners have incomplete or no coverage. Without force-placed insurance, you could be left without your money and your collateral. Force-placed insurance protects you in the event of severe damages to the house such as a fire.
Bankers Professional Liability
Whether you are a community bank, credit union or a savings and loan company, you are responsible for your clients’ assets. That makes you vulnerable to a variety of lawsuits against your company or your employees. These include claims of miss-selling financial products and recommending unsuitable investments. Having bankers professional liability insurance provides you with coverage against lawsuits and other related risks.
Even though it is your job to make sure your clients’ assets are safeguarded, you deserve to have a company looking out for your best interest as well. With so many insurance options tailored specifically to lending companies of various types and sizes, you can find the policies you need to keep your business running smoothly.