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⚡ '''Exposure trigger''' is a theory of [[Definition:Coverage | coverage]] activation used to determine which [[Definition:Insurance policy | insurance policy]] responds to a [[Definition:Claim | claim]] involving long-latency bodily injury or property damage — such as [[Definition:Asbestos liability | asbestos]]-related disease, environmental contamination, or prolonged exposure to toxic substances. Under this trigger theory, every policy in effect during the period the [[Definition:Claimant | claimant]] was exposed to the harmful condition is deemed to have been triggered, regardless of when the injury actually manifested or was discovered.

⚙️ Courts and insurers apply the exposure trigger most frequently in mass [[Definition:Tort | tort]] and [[Definition:Environmental liability | environmental liability]] cases where harm develops gradually over years or decades. If a worker was exposed to a hazardous substance from 1985 through 2000, all [[Definition:Commercial general liability insurance (CGL) | CGL]] policies on the risk during that window could potentially be called upon to respond. This stands in contrast to alternative trigger theories — the [[Definition:Manifestation trigger | manifestation trigger]] (which activates only the policy in force when injury becomes apparent) and the [[Definition:Continuous trigger | continuous trigger]] (which implicates policies from first exposure through manifestation). The practical consequence is that the exposure trigger can spread liability across many policy years and multiple [[Definition:Insurance carrier | carriers]], creating complex allocation disputes and the need for coordinated [[Definition:Claims management | claims handling]].

🏛️ The choice of trigger theory profoundly shapes how [[Definition:Loss | losses]] flow through the insurance system. For carriers, the exposure trigger can activate [[Definition:Occurrence | occurrence]] limits across numerous policy periods, significantly expanding the aggregate payout compared to a single-policy trigger. For [[Definition:Policyholder | policyholders]], it can be advantageous because it increases the total available insurance by stacking multiple years of coverage. [[Definition:Reinsurer | Reinsurers]] must carefully assess trigger assumptions when pricing [[Definition:Casualty reinsurance | casualty treaties]], because the same underlying event can produce vastly different ceded loss profiles depending on which trigger theory a jurisdiction or contract adopts. Understanding exposure trigger theory is also essential for [[Definition:Reserving | reserve]] setting on long-tail books, where actuarial projections must account for the potential activation of decades-old policies.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Manifestation trigger]]
* [[Definition:Continuous trigger]]
* [[Definition:Occurrence]]
* [[Definition:Long-tail liability]]
* [[Definition:Asbestos liability]]
* [[Definition:Coverage allocation]]
{{Div col end}}

Definition:Exposure trigger - Revision history

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