Due Diligence and Ongoing Monitoring

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  • 1.  Vendor Insurance Requirements

    Posted 01-08-2020 11:02 AM
    Good morning!

    I have a couple of questions regarding insurance requirements for vendors that I'm hoping to bounce off a few of you here in the forums.

    First, we are a small, but growing, mortgage company. We have a vendor that we use to purchase leads from for our Retail Loan Originators. This particular vendor indicates he does not carry, nor is required by the state to carry, liability insurance. This vendor is very small in size as compared to the few other vendors we use providing the same service. The larger vendors do carry insurance, but that is likely due to their size and their state requirements. Is this commonplace for this type and size of a vendor? Should we require insurance from this vendor?

    Second, how do you set your insurance requirements? Do you use the industry standard for limits or do you customize them based on what services they provide?

    Thank you in advance for your input on these two questions!

    John


  • 2.  RE: Vendor Insurance Requirements

    Posted 01-08-2020 11:50 AM
    Good Morning John,
    You might want to look at the related post below: "Lead Generator Due Diligence Checklist ". I think you would find a few answers (and more questions).


  • 3.  RE: Vendor Insurance Requirements

    Posted 01-08-2020 12:17 PM
    Thank you, Christopher! I completely missed that thread on here!