Underwrite
/ˌʌndərˈraɪt/
Definitions
- (v.) To assume financial responsibility for a risk or investment, often by guaranteeing payment in case of loss.
The insurer agreed to underwrite the new policy.
- (v.) To approve, support, or finance a project or proposal.
The bank will underwrite the construction of the new building.
Forms
- underwriting
- underwrit
- underwrites
- underwrote
- underwritten
Related terms
See also
Commentary
'Underwrite' is commonly used in insurance and finance to denote assuming risk or financial backing; clarity is essential to distinguish between literal risk assumption and broader support or sponsorship.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.