Underwriter Legal Meaning and Definition

Here is a simplified definition of the legal term Underwriter.

Underwriter (noun)

An underwriter is a person or company that takes on the risk involved in a particular agreement, usually for financial transactions. This risk can include insurance policies, bonds, loans, stocks, or any other financial contract. The underwriter's job often involves assessing the risk of these agreements and making sure they're stable and secure for all involved parties or agreeing to pay the cost if the transaction fails to be fulfilled as planned.