Identifying the difference that this coverage can make when it comes to filling in the gaps.
Though many companies have a standard form of business insurance to provide protection for the building and its contents, many people are wondering whether or not they should also look into difference in conditions (DIC) coverage in case of greater commercial and industrial risks such as earthquakes, floods, or international exposure.
DIC policies can help to fill in the gaps that are left behind by standard coverage and that can leave companies exposed to significant financial losses. They typically offer a form of protection against catastrophes that could be massively destructive to the property, such as flooding and earthquakes, but also become a supplemental coverage for events such as spoilage, burglary, operations that occur on open property, or international exposures.
DIC coverage should not be mistaken for a simple property limit boost.
This is because standard business insurance can accomplish that goal. Instead, these supplementary forms of coverage are meant to expand on the standard policies as a whole, by offering greater coverage limits for various specific perils when the primary protection isn’t reaching adequate levels or when they exclude perils that could be faced by the company. It offers protection that the primary insurer is either unwilling or unable to offer – commonly including flooding and earthquakes.
DIC business insurance can help to fill in the gap from a primary policy’s coverage.
This form of coverage is typically quite broad and will often be custom designed for each company’s unique situation and needs.
Company owners who are unsure as to whether or not they would benefit from this type of coverage are advised to speak to their agents or brokers, who will be able to review current levels of coverage with them and help to decide whether or not their protection levels are satisfactory to protect their financial future.
If the current business insurance is determined not to be enough protection, then an agent or broker will also be able to help decide whether the primary coverage should be changed in order to provide better coverage, or whether a DIC policy might be a superior option.