dual-trigger insurance

dual-trigger insurance definition - business

dual-trigger insurance

An insurance policy that pays benefits only when two specified events occur. For example, an electric utility might purchase a policy for coverage in the event of a specified loss in generating power and an increase in the price of spot electricity above a given level. Dual-trigger insurance offers lower premiums because of the reduced likelihood of two triggering events occurring at the same time.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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