• Membership
• Top 10 Reasons to Join IMBA
• Membership Benefits
• Errors & Omissions Insurance
• IMBA’s Affinity Partners

 

Errors & Omissions Insurance

Errors and Omissions (E & O) Insurance is not only wise protection … as of July 1, 2008 it will be mandatory under the new Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA).

IMBA’s E & O program offers one of the most comprehensive and cost-effective policies available to mortgage brokerages in Canada.

We have partnered with LMS PROLINK Ltd., to ensure that IMBA’s Members are protected by the best insurance products available today. Our customized E & O Insurance program features protection for:

• Full prior acts coverage with no retroactive date
• Legal defence costs for criminal acts that are dismissed
• Legal defence costs for appearances before a disciplinary committee
• Libel and slander
• Coverage for Mortgage Investment Corporations (“MIC”)
• Exclusively with IMBA – Mortgage Impairment Insurance – excellent protection for Mortgage Administrators for private lenders, portfolios and syndicated mortgages. Protects the private lender‘s interest against physical loss or damage from uninsured or underinsured perils. The coverage also applies when title to foreclosed property passes to the Mortgagee.

Are You Purchasing E & O Insurance For The First Time?

Andrew Spencer, Program Manager for the IMBA Insurance Program, will be pleased to answer your questions. He can be contacted at:

Telephone: 1.877.462.2669 or 416.644.7715
E-mail: AndrewS@LMS.CA
Visit: www.LMS.ca/IMBA to download the application and access other program details.

Is Your E & O Insurance Policy Expiring Soon?

Before you renew your present policy, compare it to IMBA’s program for cost savings and additional benefits. A comparison costs you nothing, and you may save thousands of dollars every year!

How Much Will E & O Insurance Cost You?

The annual premiums will vary from one brokerage company to another. Please note that the brokerage company is insured and Agents are covered under the company’s policy.

To give you an idea of the cost for brokerages of different sizes and types, three examples are indicated below. Locate the example that most resembles your brokerage company’s operations and then contact LMS PROLINK at 1.877.462.2669 or 416.644.7715 for a customized quote.

 

Brokerage “A” – South-western Ontario City (Population: 100,000+)

Commission Income:	$ 820,000
Fee Income:	$ 0
No. of Agents:	12
% Institutional Lenders:	95
% Private Lenders:	5
Claims in Past 3 Years:	None
Estimated Annual Premium ($500,000 per loss / $1,000,000 aggregate):	$ 2,700 - $ 2,900
Estimated Annual Premium ($1,000,000 per loss / $1,000,000 aggregate):	$ 2,950 - $ 3,200

 

Brokerage “B” – Western Ontario City (Population: 40,000+)

Commission Income:	$ 330,000
Fee Income:	$ 0
No. of Agents:	4
% Institutional Lenders:	85
% Private Lenders:	15
Claims in Past 3 Years:	None
Estimated Annual Premium ($500,000 per loss / $1,000,000 aggregate):	$ 1,100 - $ 1,200
Estimated Annual Premium ($1,000,000 per loss / $1,000,000 aggregate):	$ 1,300 - $ 1,350

 

Brokerage “C” – Greater Toronto Area

Commission Income:	$ 3,860,000
Fee Income:	$ 250,000
No. of Agents:	110
% Institutional Lenders:	80
% Private Lenders:	20
Claims in Past 3 Years:	1 Claim
Estimated Annual Premium ($500,000 per loss / $1,000,000 aggregate):	$ 13,000 - $ 14,500
Estimated Annual Premium ($1,000,000 per loss / $1,000,000 aggregate):	$ 14,200 - $ 15,800

 

Apply by Mail or Fax (Download Application)