Professional liability underwriters assess the risk of providing insurance to a customer and decide whether to approve or deny the policy, as well as establishing the terms and conditions. They rely on research and data to make informed decisions, and the specific duties may vary depending on the type of insurance company they work for.
A professional liability underwriter works as an employee of an insurance company. The primary role of the liability underwriter is to assess the risk of providing insurance to a specific customer. In the end, the professional liability underwriter decides whether to approve or deny the applicant’s policy.
In addition to deciding whether or not the policy is approved, professional liability underwriters also establish the terms and conditions of the policy. The underwriter sets these terms and conditions so that the applicant receives the type of insurance policy he needs, but also limits the amount of risk the insurer takes on, should the insurance company need to pay.
Professional liability underwriters perform a lot of research to assess candidate risk. These underwriters also rely on a lot of research, statistics, information and data that other professionals provide the underwriter of accountability. The professional liability underwriter uses all of this information as the basis for making the decision to approve or deny the insurance policy and define the terms and conditions of the policy.
There are underwriting programs and risk software to help a professional liability underwriter gather and evaluate information and data quickly and easily. The information the underwriter takes into account depends on the type of insurance policy the applicant is applying to receive.
For example, when an applicant is applying for health insurance, the professional liability insurer should review the personal characteristics, habits and behaviors of the person applying for health insurance. This means that the applicant’s age, medical history, family health history and lifestyle – such as smoking and drinking habits – will be reviewed. The more risk the candidate presents, the greater the chances of him receiving denial. If not denied, the less favorable the terms and conditions of the policy, such as a higher deductible, higher premium, or exclusion from coverage.
The specific duties and responsibilities of a professional liability underwriter may also vary according to the type of company or the type of insurance company the underwriter works for. The most common types of professional liability underwriters are in companies such as property and casualty insurance, mortgages, health plans, and life insurance. In general, all professional liability underwriters review the risk of the company extending a policy, but there may be some industry-specific tasks that each underwriter must comply with, as well as company policies and procedures that may vary from company to company.
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