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🎯 '''Claims trigger''' is the specific event or condition defined within an [[Definition:Insurance policy | insurance policy]] that activates the insurer's obligation to respond to a [[Definition:Claim | claim]]. Far from a mere technicality, the trigger determines which policy — and which policy period — responds when a loss occurs, a question that becomes especially consequential in [[Definition:Long-tail liability | long-tail lines]] where the harmful event, its discovery, and the resulting claim may span many years and multiple consecutive policy periods. Different trigger theories have been at the center of some of the most significant coverage disputes in insurance history, including mass [[Definition:Asbestos liability | asbestos]] and environmental contamination litigation.

⚙️ Several recognized trigger doctrines operate across global insurance markets. Under an [[Definition:Occurrence-based policy | occurrence trigger]], coverage attaches to the policy in force when the actual injurious event takes place, regardless of when the claimant discovers the harm. A [[Definition:Claims-made basis | claims-made trigger]], by contrast, activates the policy in effect at the time the claim is first reported to the insurer — a structure widely used in [[Definition:Professional liability insurance | professional liability]] and [[Definition:Directors and officers liability insurance (D&O) | directors and officers]] lines. U.S. courts have also developed the "exposure trigger" (coverage responds during every period of harmful exposure), the "manifestation trigger" (coverage responds when injury becomes apparent), and the "continuous trigger" theory that stretches coverage across all implicated policy periods. In the [[Definition:Lloyd's | Lloyd's]] market and across [[Definition:Solvency II | Solvency II]] jurisdictions, the precise trigger wording in a policy can alter how [[Definition:Reserve | reserves]] and [[Definition:Technical provisions | technical provisions]] are allocated across underwriting years.

📌 Understanding which trigger applies is critical for [[Definition:Underwriting | underwriters]], [[Definition:Claims adjuster | claims handlers]], [[Definition:Actuary | actuaries]], and [[Definition:Reinsurance | reinsurers]] alike. Misidentifying the trigger can lead to coverage gaps, disputes between consecutive-year carriers, and inaccurate [[Definition:Incurred but not reported (IBNR) | IBNR]] estimates. For policyholders, especially those purchasing [[Definition:Claims-made basis | claims-made]] coverage, awareness of trigger mechanics — and the role of [[Definition:Retroactive date | retroactive dates]] and [[Definition:Extended reporting period | extended reporting periods]] — determines whether a claim filed years after an incident will find coverage at all. In [[Definition:Treaty reinsurance | treaty reinsurance]], trigger definitions must align between the [[Definition:Ceding company | cedent's]] original policies and the reinsurance contract to avoid allocation disputes that can delay [[Definition:Reinsurance recovery | recoveries]] for years.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Claims-made basis]]
* [[Definition:Occurrence-based policy]]
* [[Definition:Retroactive date]]
* [[Definition:Extended reporting period]]
* [[Definition:Long-tail liability]]
* [[Definition:Incurred but not reported (IBNR)]]
{{Div col end}}

Definition:Claims trigger - Revision history

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