Underwrite

underwrite

to write one's name at the end of (a policy), thereby becoming liable in case of certain losses specified in the policy.
1400–50; late ME, trans. of L subscrībere to write underneath, sign,

subscribe

1425, "to sign at the bottom of a document," from L. subscribere "write underneath, sign one's name," from sub "underneath" + scribere "write" . The meaning "give one's consent" first recorded 1549; that of "contribute money to" 1640; and that of "become a regular buyer of a publication" 1711, all originally literal.

 

a Ship's Captain, who was looking for investors to back his adventure, would place his name and ship on the table cloth in a tavern and those interested in investing in the adventure would write their name under it and the amount they wanted to invest. Thus the people who were investing became known as the underwriters. Underwriters also refers to people who would agree to put up money to insure the ship and its cargo against loss to the investors. The Underwriters would sign up on a sheet provided by Lloyd's of London, who would hole the money, and would put up an amount of money in hopes of getting a return by sharing in the profits of the adventurer. The people who agreed to put up the money became know as the ships Underwriters.

 

Online Etymology Dictionary