Which statement correctly identifies CGL coverage triggers?

Which statement correctly identifies CGL coverage triggers?

• A. Claims Trigger - Made trigger policy in place, Policy extended
• B. Occurrence Trigger - Whatever policy in place at the time of the claim happening is policy used
• C. Both triggers are always used
• D. There are no triggers

Answer: (B)

The main idea here is how CGL coverage is triggered. In an occurrence-based CGL policy, coverage is triggered by the date the damaging event actually happened, not by when a claim is filed. The policy that was in effect when that event occurred is the one that provides coverage, even if the claim surfaces later. That’s why the statement describing an occurrence trigger—the policy in place at the time the incident happened is the one used—is correct. A claims-made trigger works differently: it ties coverage to the time the claim is made, not to when the event happened, which is not how traditional CGL operates. The notion that both triggers are always used is not accurate, and saying there are no triggers contradicts how liability policies respond to events and claims.

The main idea here is how CGL coverage is triggered. In an occurrence-based CGL policy, coverage is triggered by the date the damaging event actually happened, not by when a claim is filed. The policy that was in effect when that event occurred is the one that provides coverage, even if the claim surfaces later. That’s why the statement describing an occurrence trigger—the policy in place at the time the incident happened is the one used—is correct.

A claims-made trigger works differently: it ties coverage to the time the claim is made, not to when the event happened, which is not how traditional CGL operates. The notion that both triggers are always used is not accurate, and saying there are no triggers contradicts how liability policies respond to events and claims.