What Is a Corporate Underwriter?

by Louis Kroeck; Updated September 26, 2017
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Generally, underwriting is the process of assuming risk in return for compensation. Underwriting exists in the banking business, in bond assessment, in the insurance industry and in the risk management context. A corporate underwriter is the term for a corporate sponsor of some type of nonprofit service or organization.

Corporate Underwriting

Corporate underwriting is also called sponsorship underwriting, as the process is somewhat different from underwriting in the general context. Corporate underwriting is popular for television and radio public broadcast organizations that need financial assistance to provide services. In exchange for the financial assistance, corporate underwriters usually have their product or service mentioned by the public organization.

Financial Underwriting

Financial underwriting, in the banking, mortgage, risk assessment or bond context, is the process of assuming financial responsibility to guarantee against failure. Basically, an underwriter in the financial sense is paid a fee to bear some type of risk and to guarantee that an event, organization or transaction will be successful or compensation will be provided if it isn't.

Examples

Examples of corporate underwriters being thanked for their support typically appear as normal advertisements within radio or television programs. Corporate underwriters are also referred to as sponsors and may sponsor all different sorts of events or services. A common example of corporate underwriting recognition includes the various business logos that can be seen on the back of T-shirts for charity marathons or walks. The different corporations represented on the T-shirt have all contributed to the event in some manner and receive recognition in exchange for their contributions.

Considerations

Although corporate underwriting is generally positive, as it helps to fund charities and services requiring assistance, certain corporate underwriters may use their financial contributions as leverage to attempt to control the programming or messages sent by the group they're providing contributions to. Additionally, it may be difficult for viewers to tell the difference between a commercial and a sponsorship message provided by an underwriter.

About the Author

Louis Kroeck started writing professionally under the direction of Andrew Samtoy from the "Cleveland Sandwich Board" in 2006. Kroeck is an attorney out of Pittsburgh, Pennsylvania specializing in civil litigation, intellectual property law and entertainment law. He has a B.S from the Pennsylvania State University in information science technology and a J.D. from Case Western Reserve University in Cleveland, Ohio.

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