What are the Different Commercial Underwriter Jobs?

Commercial underwriter jobs are available in two major fields within the financial industry: commercial insurance and commercial lending. The commercial underwriter job description will vary depending on the industry segment. While insurance underwriters focus on the likelihood of an accident or loss, lending underwriters focus on whether a business can repay a loan.

Information analysis is a common skill necessary for any commercial underwriting job. Underwriters must analyze information and assess risk to ensure a company makes good business decisions before issuing an insurance policy. Otherwise, they must assess a business’s ability and willingness to repay a commercial loan.

Commercial underwriter jobs require these professionals to look at large amounts of information pertaining to every aspect of a business. They will look at property values, revenue, payroll and many other factors that actuaries have identified as important to risk assessment. Commercial underwriter jobs also require excellent communication skills because these professionals must communicate with businesses, inspectors and other professionals who help underwriters gather information.

For insurance, commercial underwriter jobs involve assessing the potential that a business may suffer an economic loss for which the insurance policy would pay. This can be for property and casualty, disability, health or worker's compensation insurance. The underwriter assesses risk by requiring a detailed application from the business looking to purchase a policy. The underwriter will also send an inspector to look at the business premises and other property to ensure the information on the application is accurate. The inspection may also turn up hazards the insurer wants remedied before issuing a policy.

The commercial insurance industry also employs surety bond underwriters. The surety commercial underwriter's job description requires the professional to analyze a contractor’s financial status, references and history to determine the likelihood that the contractor will complete a construction job. The bond guarantees the contractor will complete the job as specified by a contract. If the work is not completed properly, the bond must pay. The surety company will then pursue reimbursement from the contractor who failed to complete the work as promised.

Lending commercial underwriter jobs involve closely inspecting the finances of a commercial borrower and ensuring the borrower has the ability to repay a loan for purchasing property. Underwriters in this field look at the applicant’s historical revenues, the loan to value ratio for the property, the creditworthiness of the applicant and the physical condition of the property. If all are satisfactory, the underwriter will approve the commercial loan.