Under what condition is a liability policy considered to have been triggered?

A liability policy is considered to have been triggered when injury or damage occurs. This is rooted in the principle that liability insurance is designed to provide coverage for legal liabilities that arise from incidents leading to bodily injury or property damage. The policy kicks in at the moment the event causing the liability happens, regardless of whether a claim has been reported, a lawsuit has been filed, or the policy is renewed.

While reporting a claim and filing a lawsuit are important actions that relate to the management of a liability claim, they do not initiate the coverage under the policy. Protection is actually activated by the occurrence of the event in question, which can then lead to claims or lawsuits being filed later. Additionally, the renewal of a policy does not affect its activation but ensures continued coverage during ongoing risks. Understanding this fundamental concept is crucial for interpreting the conditions under which liability insurance takes effect.