Loans close. Claims follow.
Errors and omissions, fidelity bond, cyber liability and office coverage for mortgage brokers, loan originators, correspondent lenders and finance companies.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
Borrower data, lender demands
Mortgage and loan businesses are sued over missed rate locks, misstated terms, disclosure mistakes and loans that didn't close on time. You also hold Social Security numbers, bank statements and tax returns, which makes a data breach costly to clean up.
Wholesale lenders and investors often require E&O and a fidelity bond before they approve a broker. I place mortgage E&O, crime and cyber together, alongside any license bond your regulator requires.
- Errors and omissionsBorrower claims over advice, disclosures and closings.
- Fidelity bondEmployee theft and fraud, often required by investors.
- Cyber liabilityBreach response for borrower files.
- License bondRequired by your licensing agency for some licenses.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Licenses: DRE, DFPI and NMLS details.
- Volume: loans closed and dollar volume last year.
- Loan types: residential, commercial, reverse, private money.
- Staff: loan officers and processors.
- Data: how borrower files are stored.
- History: prior E&O, claims and complaints.
Mortgage broker insurance, answered
Does E&O cover a missed rate lock?
Claims from a mistake in your professional services often fall under E&O, subject to the policy terms and any exclusions for fees or penalties.
Is mortgage E&O claims-made?
Almost always. Keep coverage continuous and buy tail coverage if you close or sell the business.
Who requires a fidelity bond?
Investors and wholesale lenders often do, especially for correspondents that handle loan funds.
Does E&O cover a data breach?
Usually not fully. Cyber liability can handle notification, credit monitoring and regulatory response, subject to the policy.
Do you offer mortgage broker insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in 48 states and Washington, DC and places policies there directly. In Florida and Washington, where Sam's licenses are still being issued, a partner agency in your state helps in the meantime. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Send your license and volume. I'll shop it.
License type, loan volume and staff count are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued. Some policies may be placed with nonadmitted (surplus lines) insurers, which are not members of the California Insurance Guarantee Association (CIGA).
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Takes about 30 seconds. Your application link comes by email right away, and you get an update at every step until your quotes are ready.
(877) 711-4545Answered 24/7 · CA License #4348151
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Tell me when your policy renews and I’ll email you about six weeks before, when it’s worth comparing. One email, no calls.