Reviewed by Sep 30, 2020| Updated on
A coverage trigger is an event that must occur for a liability policy to apply to a loss. They are defined using policy-related terms and the courts of law use legal principles to determine whether insurance policy coverage applies.
Insurance companies use coverage triggers to make sure that the policies apply only when certain events occur. This is to ensure that they do not have to pay for all claims. However, this can shift the burden of proving that a policy should apply to the insured.
1.* Injury-in-fact theory:* The theory states that the coverage trigger is an injury itself. When an insured gets injured, the liability insurance applies.
3.* Exposure trigger theory:* The theory is applicable to injuries that establish itself over time, such as the breathing disorders caused due to harmful chemical exposure.