What are the two coverage triggers in Commercial Crime policies?

• A. Discovery Form and Loss Sustained Form
• B. Claims-made and Occurrence
• C. Named Peril and All-Risk
• D. Basic and Broad

Answer: (A)

In Commercial Crime policies, coverage is tied to how claims are triggered—the timing of when a loss is discovered or when the loss occurred. The two triggers are discovery form and loss-sustained form.

With the discovery form, the insurer covers losses that are discovered during the policy period (or during any extended discovery period), regardless of when the loss actually occurred. This means crimes that happened earlier can still be covered if they’re found during the discovery window.

With the loss-sustained form, coverage applies to losses that occur during the policy period and are discovered and reported during the policy period or within an extended reporting period. Here, the critical factor is when the loss happened—the loss must occur while coverage is in force and then be reported within the allowed time.

In short, discovery form centers on when you find the loss; loss-sustained form centers on when the loss occurred and is reported within the reporting window.