Note Investor Liability Insurance

[Brian M.]

Hello everyone,

I have an LLC that purchases and holds performing notes. Payments are collected by the note servicer. I'm looking into purchasing liability insurance as a risk mitigation technique for lawsuits caused by negligence. This would likely be in the realm of errors and omissions - i.e. did the servicer fail to provide the correct notice, incorrectly calculate payments reduction in UPB, or a borrower files a suit if I am put in a position where we are trying to renegotiate a delinquent note (either myself or the servicer). I know some would say that it is the servicer's responsiblity to carry liability coverage, but that will certainly not prevent a suit from being filed against my LLC.

I have some questions and would appreciate your feedback:

• What type of insurance do you carry to help mitigate these risks and who is your insurer?
• What is the approximate cost of this coverage?
• Do you have an insurance agent in mind that you recommend who has experience helping shop around this type of coverage? 

Thank you for your time