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.