Definition, Meaning & Synonyms

underwritten

verb

/ˌʌndərˈrɪtən/

Definition

To have agreed to take on financial responsibility for something, typically involving insurance or securities.

Examples

The insurance policy was underwritten by a large company.
After careful analysis, the bank agreed to underwrite the loan for the new project.
She felt secure knowing that her investment had been underwritten by experienced professionals.

Meaning

The term ‘underwritten’ refers to the process where an individual or institution takes on the risk of a financial obligation, often by providing insurance or backing for an investment. It indicates a commitment to financially support or guarantee something, ensuring that potential risks are covered.