Mortgage Brokers' Tail-Coverage Secrets Brokers Need Now
Real-World Examples and Costs
Consider a mortgage broker who decides to retire after 20 years in the industry. Without tail coverage, they could face financial ruin if a former client files a lawsuit over a past transaction. By investing in tail coverage, the broker can retire with confidence, knowing they are protected against such claims. The cost of tail coverage can range from 100% to 300% of the final annual premium of the E&O policy, depending on the duration of the tail coverage1.