What is it?

Mortgage Impairment Insurance provides protection for mortgage lenders (i.e. a private lender, investor, mortgagee) if a property is uninsured and sustains physical loss or damage. If a lender believed a property was insured at the time of the loss, but later found out that there was either no valid policy in place or that the policy did not provide sufficient coverage, Mortgage Impairment Insurance would protect their mortgage interests and offset any financial impact.

Highlights include:

• Protects the entire mortgage portfolio managed by the lender or mortgage administrator;
• Protects the private lender’s mortgage interest against physical loss or damage from uninsured perils (i.e. flood, fire, sewer back-up, vandalism);
• Covers commercial and residential properties across Canada, including both vacant and occupied properties;
• Primary Property Insurance prior and subsequent to the title passing to the lender for properties that do not have an existing policy in place, inadequate insurance, or no evidence of insurance from the mortgagor;
• Optional Premises Liability Coverage for repossessed (e.g. Power of Sale or Foreclosure) and high-risk properties, such as homes under construction, vacant properties, boarding houses, and multi-family dwellings.

Why do you need it?

There are numerous scenarios where Mortgage Impairment Insurance is crucial for lenders. For example, when a property is subject to a Power of Sale, the lender assumes a crucial role as the mortgagee in possession. With this responsibility comes the potential for liability related to the property. If there was a break-in at a vacant property or an injury during a real estate showing, the affected party may look to the mortgagee in possession for compensation. It is important for the lender to have the proper protections in place to safeguard against such scenarios.

In the past, only the largest banks and trust companies in Canada could access this coverage at affordable rates. Now, mortgage administrators, individual private lenders, mortgage funds, and mortgage investment corporations can all purchase at pooled CAMLA program rates to protect their assets.

An additional benefit? The cost of adding a property to your Mortgage Impairment policy for primary coverage is generally more cost-effective than taking out a standalone Property Insurance policy. As a result, you might be able to offset policy costs, or even use the policy as a small profit centre by charging back on mortgages when the primary coverage is required.

Obtaining this policy through PROLINK will also reduce the time you spend administering home and condo insurance for individual properties. Once purchased, you can simply provide us with a quarterly list of properties that require primary insurance instead of applying for coverage on a case-by-case basis.

What is it?

Cyber Insurance protects your business and offsets your losses in the event of a breach, like if your company’s information is stolen or exposed by a hacker, or accidentally released by an employee. This policy typically includes the following coverages:

• Legal coaching on how to handle the breach with privacy regulators;
• Funds for credit monitoring and client notification costs;
• Funds for court-awarded damages and legal fees in case of a civil suit; and
• Public relations services to manage any reputational fallout from the breach.

Highlights Include:

• Coverage for First Party Liability Expenses–when a breach happens at your own business. The policy will provide coverage for expenses associated with: Event Support Services, Crisis Management Expenses, Network Business Interruption, Digital Asset Restoration, Network Extortion/Ransomware, Cyber Crime, Computer Replacement, and Business Interruption.
• Coverage for Third Party Expenses in the event that you’re sued by a third party whose data was compromised in the breach. This includes costs associated with Privacy Regulation Penalties, Multimedia Liability, Payment Card Industry Fines and Penalties, and more.

Why do we recommend it?

Financial Services firms are among the top targets for cybercriminals. Why? You either have the type of personal information that cybercriminals crave, or you’re a gateway to it. Mortgage Brokers, Lenders, and Administrators also have an especially high exposure due to the banking information you collect from borrowers and investors and your connections to larger third-party vendors, such as credit agencies and mortgage application providers (like the Mortgage Office and Mortgage Automator).

A breach is all but inevitable; it’s just a matter of how soon it happens. Without proper security, you risk losing permanent access to mission-critical data. Plus, if you’re found negligent in the event of a breach, Canadian Privacy Regulators could fine you up to $100,000 per violation. Then there are indirect costs, like client notification, investigation, business interruption, and legal fees. In fact, the average cost per lost or stolen record in your industry is $520. If you have even 100 clients, that means you’ll be out a minimum of $52,000 in breach expenses.

Even worse? Diminished goodwill and reputational harm from the breach might even do more harm than remediation costs, especially if you don’t take swift action or notify breach victims right away. Once you’ve lost that trust, it won’t be easy to regain, or attract new clients, employees, or even investors.

That’s where Cyber Insurance comes in. With a comprehensive policy, you can protect your company from financial loss and get ahead of a breach without losing business momentum or taking a massive reputational hit. Learn more by visiting our Cyber Toolkit below.

What is it?

Errors & Omissions (E&O) Insurance protects you and your firm from any allegations of errors, omissions, or negligence committed within the scope of your professional activities. It’ll cover your damages—legal expenses, administrative costs, and court settlements—EVEN if the claims made against you are groundless.

Program highlights include:

• Flexible amounts of coverage ranging from $500,000 to $5,000,000 per loss;
• Protection for mortgages arranged with Private, Alternative, and Institutional lenders;
• Coverage for mortgage administration services;
• Full prior acts coverage for the brokerage. The policy will cover services rendered by all associates since the inception of the brokerage. All agents and employees are automatically covered under the policy;
• Legal Expenses reimbursement for Regulatory Disciplinary investigations and hearings;
• No deductible if no damages are paid to the third party claiming against you;
• Canada-wide coverage for brokerages licensed in any province and regulator-approved in provinces where E&O Insurance is mandatory;
• Access to a comprehensive, complimentary Legal Protection Service;
• And more.

Why do we recommend it?

Depending on where you practice and the professional services you offer, you may be required to register as a Mortgage Broker/Brokerage or Administrator in certain provinces and carry Errors & Omissions Insurance by a regulatory body, like in Alberta (RECA) or Ontario (FSRA).

But whether or not it’s a requirement, there are countless reasons all Mortgage Professionals should at least consider Errors & Omissions Insurance. After all, the real estate market is ever-evolving, even in times of prosperity. And when people’s savings are in question, tensions can run high, especially if your client thinks you’ve done something to damage them financially or misrepresented their interests. Even if you’ve worked to the best of your knowledge and ability—even if you’ve done nothing wrong—your advice or actions might be misinterpreted and you could face a lawsuit. Having Errors & Omissions Insurance will allow you to respond quickly and effectively and ensure that a frivolous claim won’t jeopardize your business or your reputation.

To be clear, while PROLINK’s Errors & Omissions Insurance program includes the services you provide a mortgage brokerage or administration firm, it won’t cover your risks as an Alternative Mortgage Lender. Why? Alternative Mortgage Lenders have more flexible guidelines for mortgage approval than big banks and require specialized coverage to protect against a higher level of exposure from borrowers that might not meet the criteria for a traditional mortgage. Because the risk is so high, lenders are also required to carry E&O Insurance in some jurisdictions, like Nova Scotia.

Alternative Mortgage Lenders can obtain Errors & Omissions coverage through PROLINK’s comprehensive Mortgage Fund Directors & Officers Insurance plan, which is custom-tailored for lending services.

What is it?

Legal representation is expensive. Between lawyers’ fees, court fees, settlements, and more, the cost of an unexpected lawsuit can add up pretty quickly. And costly litigation won’t just chip away at your business’s bottom line; it’ll also tarnish the reputation you’ve worked so hard to build.

That’s why PROLINK is partnering with ARAG Canada to offer a comprehensive, cost-effective Legal Protection Service, automatically included with your Errors & Omissions Insurance. Your Legal Protection Service now includes access to:

• Legal Expense Insurance up to your limit of coverage, including coverage for legal representation;
• Professional legal counsel through an unlimited telephone service, available seven days a week from licensed lawyers;
• A secure, online Legal Document Portal uniquely tailored to the needs of CAMLA members, with free access to 100+ legal templates and a guided document builder;
• And more!

Why do we recommend it?

Dealing with a claim, an investigation, or a situation that has the potential to turn into one can be stressful and demanding. When someone puts your competence, your conduct, and above all, your integrity into question, you’re bound to be overwhelmed, especially if the allegations are unfounded.

It might be tempting to reach out to a lawyer friend that you know and trust or a jack-of-all-trades firm to cut down on your legal fees. But when your license—and your reputation—are hanging in the balance, you’ll need more than general counsel. You’ll need a specialist with experience in mortgage services, professional regulation, and disciplinary hearings to make all the difference when it matters most.

ARAG has served Mortgage Professionals for many years. That means they’ll understand the nuances of your case better than a general attorney. It also means they’re well-versed in the complaints process and might know how regulators have approached similar issues in the past, giving them unique insight on how to protect your interests.

Simply click below to learn more.

What is it?

Commercial General Liability Insurance (CGL) will protect your firm from third-party claims of bodily injury, property damage, and reputational harm caused by your professional activities or business operations.

Why do we recommend it?

CGL Insurance will protect you from common risks that all businesses face regardless of size, trade, or industry. Whether your firm is large or small, online or on the ground, you could be liable if any kind of damage or injury to a client, vendor, supplier, or other third-party is traced back to you or staff. You’re particularly vulnerable if you or your employees:

• Own, rent, or lease a commercial space that’s open to the public;
• Have a home-based business where clients visit you;
• Visit your client’s workspace or home, or conduct business anywhere else offsite; and
• Advertise or create marketing materials for your products, or services.

What is it?

Property Insurance protects your commercial property from damage or loss and will cover the costs of repairs or replacement for contents, equipment, and furnishings.

Why do we recommend it?

Property Insurance is vital if you have your own business, regardless of the location. Whether you work from home or out of a commercial office, your general liability or homeowner’s policies won’t reimburse you for any damage to your business assets following a break-in, fire, or other disaster. And without proper coverage, the impact of repair and replacement costs could be financially devastating, especially if you lose any valuable equipment, files, or key documents that are necessary for operations.

Property Insurance can help you safeguard the investment that you’ve poured into your office, as well as meet any landlord or property manager lease requirements. We’ll also make adjustments to your coverage as your business continues to grow so you’re protected no matter what.

What is it?

Employment Practices Liability (EPL) Insurance protects your business from claims made against you by employees, such as wrongful termination, discrimination, harassment, and more.

Why do we recommend it?

As a business leader, you know how aggressive clients can be—but employees can be equally as unpredictable. No matter how much you trust your team, even if you hand picked them yourself, you might just be one close call away from an allegation that could affect your reputation as a fair employer. And these days, it’s not hard to get the Ministry of Labour involved and suddenly, you’re out thousands of dollars in legal fees and lost business. With an EPL policy, you’ll be protected against any employee allegations that may arise throughout the course of work (subject to the terms of your policy).

What is it?

Our Group Health & Dental Benefits offer fully customizable Health, Dental, and Drug plans for you and your employees at competitive rates. Plan features may include (but are not limited to):

• Extended healthcare, including drug and dental coverage;
• Life Insurance;
• Long-term Disability Insurance;
• Employee assistance plans;
• Health spending accounts;
• And more!

Why do we recommend it?

Any business with employees should consider Group Health & Dental Benefits. After all, the success of any organization relies on the well-being of its people. When employees are healthy—when they feel supported by workforce leaders—businesses are resilient in the face of an uncertain future. That’s why it’s key to protect your employees’ physical, mental, and financial health with a strong benefits package. Our Protect & Perfect risk management approach to group benefits can align your firm with a comprehensive program that reflects your staff’s needs, business challenges, and financial goals.