A professional liability underwriter works for an insurance company as an employee. The liability underwriter’s primary responsibility is to assess the risk of providing insurance to a specific client. Finally, the professional liability underwriter determines whether the applicant’s policy should be approved or denied.
Professional liability underwriters set the policy’s terms and conditions in addition to deciding whether or not the policy is approved. These terms and conditions are set the underwriter to ensure that the applicant receives the type of insurance policy they require while also limiting the amount of risk that the insurance company assumes in the event that the insurance company is forced to pay out.
In order to assess the risk of the applicant, professional liability underwriters conduct extensive research. Other professionals provide the liability underwriter with a lot of research, statistics, information, and data, which these underwriters rely on. All of this information is used the professional liability underwriter to decide whether to approve or deny the insurance policy and to set the policy’s terms and conditions.
Underwriting and risk software programs are available to assist a professional liability underwriter in quickly gathering and analyzing information and data. The information that the underwriter considers is determined the type of insurance policy that the applicant is seeking.
When an applicant applies for health insurance, for example, the professional liability underwriter must examine the applicant’s personal characteristics, habits, and behaviors. This means the applicant’s age, medical history, health family history, and lifestyle — including smoking and drinking habits — will all be scrutinized. The greater the applicant’s risk, the more likely it is that the application will be denied. If not denial, the policy’s terms and conditions may be less favorable, such as a higher deductible, higher premium, or coverage exclusion.
A professional liability underwriter’s specific duties and responsibilities can also differ depending on the type of company or type of insurance company for which the underwriter works. Professional liability underwriters are most commonly found in companies that provide property and casualty insurance, mortgages, health insurance, and life insurance. Overall, professional liability underwriters consider the company’s risk when extending a policy, but there may be some industry-specific tasks that each underwriter must follow, as well as company policies and procedures that differ from one company to the next.