What does Multiple Trigger Insurance Contracts mean? Read on to discover the definition & meaning of the term Multiple Trigger Insurance Contracts - to help you better understand the language used in insurance policies.
Multiple Trigger Insurance Contracts
Traditional insurance contracts have one trigger: a physical event or occurrence that activates coverage. Multiple trigger contracts are designed to respond to both physical hazard-type events and resultant financial movements. These financial movements can be any benchmark against which the firm measures its financial viabilities, such as its stock price, quarterly earnings, internal rate of return, etc. For example, a multiple trigger (also known as a dual trigger) program could cover property loss due to fire, windstorm, etc., and a reduction in quarterly earnings that results from the physical event.
We hope the you have a better understanding of the meaning of Multiple Trigger Insurance Contracts.