Underwriting, when it comes in insurance, refers to the evaluation of the risk that a potential client brings to the table. The underwriting process determines whether a client is an acceptable risk. If he is, then an underwriter will determine how much coverage should be available to the client, and how much that coverage is worth.

An underwriter's job is to acquire businesses that will bring income to the insurance company; hence, companies that present an acceptable level of risk. The underwriter uses potential clients to determine how much an insurance company can afford.

Underwriting information can be difficult to understand, but if you find the right underwriting provider you will be able to sort through all the issues. Things to look for in an underwriting provider are:

1. How long it has been in the business.

2. If it holds all the right certifications to be an underwriter.

3. The price you of the underwriting services.

Action Steps
The best contacts and resources to help you get it done

Choose an underwriting provider with full time employees

Many underwriting companies you can choose from will be a group on contracted underwriters working for the same company. In order to get the best underwriting services for your needs, you will want to choose a company that provides underwriters who are full time employees. This will help to get better underwriters with more qualifications.

I recommend: Hovin Underwriting Partners is a company that has a large staff of full time underwriters. Thomas Weisel Partners has a full time staff of underwriters that work on a variety of projects.

Find an underwriter for your specific needs

There are many types of underwriters because underwriting covers all forms of insurance and mortgage practices. Some of the most common forms of underwriting are services for properties, vehicles, mortgage loans, and health insurance.

I recommend: New Day Underwriting Managers provides an underwriting directory for environmental and property casualty underwriting services. National Marine Underwriters provide insurance underwriting for boats and other charters. America's Underwriter, from American Reverse Mortgage underwrites FHA home mortgage loans.

Go with underwriting services that work exclusively online

If you need to contact an underwriting service for a quick job, you can always use an underwriting service that does business through the Internet. This can be a convenient service, but you must check out the company's credentials before you commit yourself.

I recommend: Underwriting Systems Online provides a complete underwriting list of services. Novae provides an online underwriting program that provides services through its website and via email.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure you find underwriting services that are qualified for the job. There are specific certifications an underwriter must have in order for your underwriting to hold up in court. Do not hesitate to ask about their qualifications before hiring them.