Difference in Conditions
Difference in Limits

The Difference in Conditions (DIC)/ Difference in Limits (DIL) insurance recognizes that there are times wherein a contractor’s scope of promises made in contract with the main CAR-insured is broader than the coverage afforded to the contractor when it is named a co-insured on the main CAR insured’s OCIP.

This additional broadness of contractual promises can largely fall along three main issues:

• An obligation to repair damages arising from defects that is broader than the defects coverage in the OCIP, and/or

• A defects notification period in the contract which is longer than the duration of the Maintenance & Discovery (M&D) period in the OCIP, and/or

• An obligation to guarantee defects/damages arising from a cause occurring prior to the start of the OCIP when the OCIP M&D provisions only provide for coverage of issues discovered which relate to faults occurring during the OCIP period and/or only at the CAR insurance locations.

The DIC/DIL insurance can provide for an umbrella “wrap” which covers the contractor for one or more of the gaps listed above between the scope of the OCIP CAR insurance, and the broader scope of the contractual promises demanded of the contractor by the CAR main insured. Similar to the DBD product, this DIC/DIL insurance is applicable for specific contactor work packages, evaluated on a contractor by contractor, work package by work package basis.