difference-in-conditions (DIC) insurance
(1) A policy designed to broaden
coverage by providing additional limits of coverage for specific
perils when standard markets won't provide adequate limits of coverage,
providing coverage for perils that are excluded on standard coverage
forms, or supplementing international policies that are written
by admitted insurers in the applicable foreign countries.
(2) An all risks property insurance
policy that is purchased in addition to a commercial property policy
to obtain coverage for perils not insured against in the commercial
property policy (usually flood and earthquake).
(3) An endorsement to a contractor's
blanket builders risk insurance policy that fills the gaps between
a policy provided by the project owner and the contractor's policy
so that the contractor has insurance comparable to what it would
have had if coverage had been arranged under the contractor's builders
risk program. When a project owner elects to provide the builders
risk coverage for all parties with an insurable interest, the project
is normally removed from coverage under the contractor's policy.
A DIC endorsement typically states that, to the extent a loss is
not covered under the owner-provided policy but would be covered
under the contractor's policy, coverage will apply on an excess
basis. (4) An insurance policy
that is designed to fill the gaps between the coverage provided
by a multinational organization's master insurance policies (property
or liability) and coverage provided by policies purchased locally
in accordance with each country's insurance requirements so that
the organization has uniformity of coverage regardless of location.
This policy is referred to as a foreign DIC policy.
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