difference-in-conditions insurance (DIC)

Difference-in-conditions (DIC) insurance is a policy that provides additional limits of coverage for specific perils when standard markets won't provide adequate limits, adds coverage for perils that are excluded on standard coverage forms, or supplements international policies written by admitted insurers in the applicable foreign countries.

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Additional Information

It is 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). It is also 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. It is also 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.