Demand trigger coverage

{
  "id": "MLC-T-INS-001117",
  "term": "Demand trigger coverage",
  "field": "Insurance and risk management",
  "definition": "A type of claims-made insurance policy where coverage is activated when a demand for monetary damages is first made against the insured, rather than when the wrongful act occurred or when a formal lawsuit is filed. This trigger mechanism is common in professional liability and directors and officers (D&O) insurance. The demand must be received by the insured and reported to the insurer within the policy period or an extended reporting period.",
  "url": "https://mlchart.com/terminology/insurance/demand-trigger-coverage/"
}