What Does a Coverage Trigger Mean?
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.
Coverage Trigger Theories
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.
- Manifestation trigger theory: The coverage trigger, in this case, is the discovery of the injury or damage. That is, when the insured discovers that the vehicle is damaged, the coverage 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.
- Continuous trigger theory: This includes a combination of triggers manifestation, exposure, and injury-in-fact. This kind of injury develops over time.
