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⚡ '''Policy trigger''' is the event, condition, or circumstance that activates coverage under an [[Definition:Insurance policy | insurance policy]], determining which policy period responds to a given [[Definition:Loss | loss]]. Different types of triggers — [[Definition:Occurrence-based policy | occurrence]], [[Definition:Claims-made policy | claims-made]], [[Definition:Manifestation trigger | manifestation]], and [[Definition:Exposure trigger | exposure]] — define the moment at which the insurer's obligation to pay begins. The trigger mechanism is especially consequential in [[Definition:Liability insurance | liability]] lines, where the injurious event, the discovery of harm, and the filing of a claim may span years or even decades.

🔎 Under an occurrence trigger, coverage attaches when the loss-causing event takes place during the policy period, regardless of when the [[Definition:Claims | claim]] is later reported. A claims-made trigger, by contrast, responds when the claim is first made against the insured during the active policy period (or an applicable [[Definition:Extended reporting period | extended reporting period]]). [[Definition:Professional liability insurance | Professional liability]], [[Definition:Directors and officers insurance (D&O) | D&O]], and [[Definition:Cyber insurance | cyber]] policies commonly use claims-made triggers because the lag between wrongful acts and claim notification can be substantial. In long-tail exposures such as [[Definition:Asbestos liability | asbestos]] or environmental contamination, courts have applied continuous or "triple trigger" theories, holding that every policy in effect from initial exposure through manifestation of injury may be called upon to respond.

🧩 Selecting and understanding the right trigger mechanism has profound implications for both [[Definition:Underwriter | underwriters]] and [[Definition:Policyholder | policyholders]]. For carriers, the trigger type shapes [[Definition:Policy reserves | reserving]] methodology, [[Definition:Reinsurance | reinsurance]] recoveries, and the duration of [[Definition:Loss development | loss development]] tails. For insureds, misunderstanding how a trigger works can result in unintended gaps — particularly during policy transitions, when switching from an occurrence form to a claims-made form without securing adequate [[Definition:Prior acts coverage | prior acts coverage]] or [[Definition:Tail coverage | tail coverage]]. Litigation over which trigger applies has generated some of the most significant and costly coverage disputes in insurance history, underscoring why precise [[Definition:Policy wording | policy language]] on this point is non-negotiable.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Occurrence-based policy]]
* [[Definition:Claims-made policy]]
* [[Definition:Extended reporting period]]
* [[Definition:Tail coverage]]
* [[Definition:Long-tail liability]]
* [[Definition:Policy wording]]
{{Div col end}}

Definition:Policy trigger - Revision history

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