difference-in-limits clause (DIL)
A difference-in-limits (DIL) clause is a provision contained in an insurance policy that provides coverage for the difference in limits between the limits of that policy and another policy that also covers the insured for the perils insured against.
difference-in-limits clause (DIL)
A difference-in-limits (DIL) clause is a provision contained in an insurance policy that provides coverage for the difference in limits between the limits of that policy and another policy that also covers the insured for the perils insured against.
Additional Information
DIL clauses are commonly used in master international insurance programs (often referred to as a master controlled program)to provides coverage for the difference in limits between the limits of local underlying policies and the limits of the master international policy. They are also sometimes used with blanket builders risk policies purchased by contractors as additional protection beyond the builders risk coverage provided by a project owner.
