multiple trigger insurance contracts

While 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.

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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 program could cover property loss due to fire, windstorm, etc., and a reduction in quarterly earnings that results from the physical event.



dual trigger