An INSURANCE mechanism that provides the INSURED with a payout only if two separate TRIGGER events occur. One trigger is often related to a traditional insurable OPERATING RISK (e.g., damage or destruction in plant and equipment leading to business interruption), while the second may relate to a FINANCIAL RISK (e.g., a decline in operating revenues to a particular amount, or a fall in the stock price to a certain level). Since both events must occur in order for a SETTLEMENT to be paid, the PREMIUM is generally lower than on a conventional insurance contract. See also MULTIPLE TRIGGER PRODUCTS, TRIPLE TRIGGER.

More On This Topic

Link to This Definition

Did you find this definition of DUAL TRIGGER helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary