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.