Claims-Made Trigger

The Claims-Made Trigger is an important insurance concept because it determines when a claim may be reported and when the insurance company is liable to respond to a claim. In a Claims-Made policy, the insurance company is only obligated to respond to claims that are reported after the trigger date.

The Claims-Made Trigger is the effective date of the insurance policy and is typically the date that the policy was issued, renewed or amended. The Claims-Made Trigger is usually expressed as the policy’s “retroactive date”. The retroactive date is the date from which the insurance company will provide coverage for any claims that occurred before the policy was issued.

In some cases, a Claims-Made Trigger may also be the date when the policyholder first became aware of a potential claim. This is known as the “Discovery Trigger” and is typically found in Directors and Officers (D&O) Liability policies.

The Claims-Made Trigger is an important concept that affects how insurance claims are reported and processed. It is important for policyholders to understand their Claims-Made Trigger in order to ensure that they are properly protected when making a claim.