Indemnity Trigger

An indemnity trigger is a specific condition in an insurance or financial agreement that activates the insurer's obligation to pay or cover a loss. When this trigger occurs—such as a claim, event, or specified circumstance—the insurer is obliged to provide compensation or protection based on the terms of the policy. Essentially, it’s the predefined event that prompts the insurer to fulfill their indemnity, ensuring the insured is financially protected against particular risks or damages once the trigger condition is met.