Product Update

Difference-in-Conditions Coverages for Contractors and Tips for Controlling Insurance Costs in Construction Risk Management


This release of Construction Risk Management includes a new discussion of difference-in-conditions coverages as commonly utilized by contractors and updated tips for controlling insurance costs.

Difference-in-Conditions Coverages for Contractors

Difference-in-conditions (DIC) policies are commonly used to provide coverage for a peril or perils that are not otherwise insured or to fill a gap between a contractor's policies and those provided for the contractor by another party. Two of the most common uses of DIC coverage in construction are to fill the gaps between a contractor's master builders risk policy and owner-provided builders risk or between a contractor's liability insurance policies and the policies provided in a wrap-up insurance program. DIC is also sometimes used to fill potential gaps in insurance for commercial property, foreign risks, and captive policies.

Tips for Controlling Insurance Costs

Don't pay more for your insurance that necessary. Take proactive steps to reduce insurance and overall risk management costs with simple steps such as eliminating redundant coverage, retaining more risk where feasible, ensuring the premium base is correct, and reviewing claims. We provide tips for controlling auto, liability, workers compensation, and property insurance costs. Tips for improving your handling of claims, insurance renewals, and risk management strategies are also provided.

Some of these suggestions will only be applicable to certain contractors, such as large or specialty contractors, but others apply to almost any type or size of contractor. Similarly, some of the suggestions may not be feasible in a hard market, while others are more important than ever in such conditions.