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Occurrence Trigger

What is an Occurrence Trigger?

Occurrence Trigger may refer to the type of insurance policy trigger used to determine when coverage begins and ends. It is used in Directors and Officers (D&O) insurance, which provides financial protection for corporate directors and officers in the event of a lawsuit or other legal action. The occurrence trigger defines the scope of coverage by specifying that the policy will respond to any incident that occurs during the policy period, regardless of when the claim is brought.

Occurrence Trigger in More Detail

In simpler terms, an occurrence trigger is used to determine whether a policy covers an event or claim even if the actual lawsuit or other legal action is not filed until after the policy period has ended. This type of trigger is especially useful for D&O policies, as the length of time between the occurrence of a loss and the filing of a claim can be long.

The occurrence trigger is also important when it comes to determining liability in a D&O policy. Under the occurrence trigger, the policy will cover any claims that arise from an incident that happened during the policy period, regardless of when the claim is actually made. This means that even if the policy has expired, the insured will still have coverage for any incidents that occurred while the policy was in effect.

In summary, an occurrence trigger is a type of insurance policy trigger used to determine when coverage begins and ends. It is used in D&O policies to provide coverage for any losses incurred during the policy period, regardless of when the claim is made. This type of trigger is important for D&O policies, as the length of time between the occurrence of a loss and the filing of a claim can often be significant.

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