Coverage Trigger

Coverage Trigger

Coverage Trigger

The coverage trigger identifies when injury or damage occurred for purposes of determining which policies respond. For a discrete event the answer is obvious, but for progressive harm such as disease, contamination, or construction defects it is contested.

Courts apply several theories: exposure, which triggers policies in force during exposure; manifestation, which triggers the policy when damage became apparent; injury-in-fact; and continuous trigger, which activates every policy from exposure through manifestation.

Alternative Names:

Trigger of Coverage

Why it Matters?

Trigger selection determines how many policy years and how many limits are available, and it precedes any allocation analysis. In asbestos, environmental, and abuse claims a continuous trigger can activate decades of coverage, while a manifestation trigger may confine the loss to a single year, changing available limits by orders of magnitude.

Frequently asked questions

Why does the trigger theory matter?

Why does the trigger theory matter?

It determines which policy years respond and therefore how many limits are available. A continuous trigger can implicate decades of coverage where a manifestation trigger would implicate only one policy.

Which trigger applies to construction defect claims?

Which trigger applies to construction defect claims?

It varies by state. Many jurisdictions use an injury-in-fact or continuous trigger tied to when damage began, while others look to manifestation.