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⚡ '''Trigger (insurance)''' denotes the event or condition that activates [[Definition:Coverage | coverage]] under an [[Definition:Insurance policy | insurance policy]], determining whether and when an [[Definition:Insurer | insurer's]] obligation to pay a [[Definition:Claim | claim]] arises. In insurance, the concept of a trigger is far more than a technicality — it dictates which policy year responds to a loss, which is especially consequential for [[Definition:Long-tail | long-tail]] lines where the harmful event and its discovery or manifestation may be separated by years or even decades. Disputes over which trigger applies have produced some of the most significant coverage litigation in the industry's history, particularly in [[Definition:Asbestos | asbestos]], environmental, and [[Definition:Mass tort | mass tort]] claims.

🔧 Courts and policy forms recognize several trigger theories. The [[Definition:Occurrence trigger | occurrence trigger]] ties coverage to the policy in effect when the injury-causing event actually took place. The [[Definition:Manifestation trigger | manifestation trigger]] looks to when the injury or damage became apparent. The [[Definition:Exposure trigger | exposure trigger]] — often applied in toxic tort cases — activates every policy in force during the period of harmful exposure. And the [[Definition:Continuous trigger | continuous trigger]] doctrine holds that all policies from initial exposure through manifestation may be called upon to respond. Which theory governs depends on the jurisdiction, the policy language, and the nature of the loss. [[Definition:Claims-made | Claims-made]] policies sidestep much of this ambiguity by tying coverage to the date the claim is first reported, rather than when the underlying event occurred, but they introduce their own complexities around [[Definition:Retroactive date | retroactive dates]] and [[Definition:Extended reporting period | extended reporting periods]].

🏛️ Understanding trigger mechanics is indispensable for [[Definition:Underwriter | underwriters]], [[Definition:Claims adjuster | claims professionals]], and [[Definition:Reinsurance | reinsurance]] negotiators alike. When a [[Definition:Cedent | cedent]] and its reinsurer disagree on which policy year a loss attaches to, the financial stakes can be enormous — particularly in [[Definition:Excess of loss | excess-of-loss]] treaties where attachment points are year-specific. For carriers writing [[Definition:Liability insurance | liability]] and [[Definition:Professional liability insurance | professional liability]] business, the trigger determination drives [[Definition:Reserving | reserve]] allocation across multiple accident years and influences how [[Definition:Incurred but not reported (IBNR) | IBNR]] reserves are distributed. In product design, the choice between an occurrence form and a claims-made form is fundamentally a decision about trigger structure, with downstream implications for pricing, capacity, and the policyholder's long-term coverage security.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Trigger of coverage]]
* [[Definition:Occurrence]]
* [[Definition:Claims-made policy]]
* [[Definition:Long-tail liability]]
* [[Definition:Manifestation trigger]]
* [[Definition:Continuous trigger]]
{{Div col end}}

Definition:Trigger (insurance) - Revision history

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