What purpose does a Difference in Conditions policy serve?

A Difference in Conditions (DIC) policy is primarily designed to address and fill gaps in coverage that may exist when it is written in conjunction with standard property insurance policies. Traditional property insurance policies often have exclusions for specific types of risks or losses, meaning that some losses might not be covered under those policies. A DIC policy complements these primary policies by covering risks that are typically excluded, thereby providing a more comprehensive range of protection.

This is essential for businesses or individuals who may face unique risks beyond what standard policies cover. By having a DIC policy, insured parties can ensure that they have protection against these specific gaps in coverage, thus strengthening their overall risk management strategy. The DIC policy acts as a safety net, ensuring broader coverage and less potential for uncovered losses.