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Written Premium
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Definition. Written premium is the total premium on policies an insurer issues (writes) during a period, counted when the policy is bound — regardless of how much of the coverage period has elapsed. It contrasts with earned premium, which is recognized only as time passes.
Also known as:
gross written premium, GWP
Written premium is the full premium on every policy an insurer binds in a period, recorded up front when the policy is written. Buy an annual policy for $1,200 on day one and the carrier books $1,200 of written premium immediately — even though it has not yet provided a full year of coverage.
That distinction drives the difference between written and earned premium. As each month of coverage elapses, a slice of the written premium converts to earned premium; the not-yet-earned remainder sits as unearned premium, which the carrier would refund pro-rata if you cancel mid-term (subject to any minimum earned provision).
For a business owner, written premium is essentially your annual bill at bind — the figure a premium audit may later true-up if your actual payroll or sales differ from the estimate used to write the policy. Insurers track written-premium growth as a top-line volume metric, separate from whether that business is profitable (see combined ratio).
Example
A contractor binds a GL policy on March 1 with a $6,000 annual premium. The carrier books $6,000 of written premium in March. By June 1, three months (25%) have elapsed, so $1,500 is earned and $4,500 remains unearned.
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Disclosures
📘 Educational content only.
Reviewed by licensed Property & Casualty insurance agent
Jason Wootton (NPN 7694718). Not insurance advice, an individual recommendation, or a solicitation in any state. Insurance regulations vary by state. For specific coverage decisions, consult a licensed insurance agent in your state.
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