When opening or managing a business, professionals often think of the most basic insurance coverages they need; property insurance, workers’ compensation, perhaps even professional liability. But what about the larger industrial or commercial risks that many businesses face throughout California and beyond? Earthquakes and Floods are what we are referring to; these risks require a special type of coverage called Difference in Conditions (DIC) Insurance.
Vikco Insurance Services, Inc. is an MGA that focuses primarily on commercial lines products, with a specialization in Commercial DIC Insurance. DIC coverage helps bridge the gaps in coverage in order to wholly protect businesses. These types of policies typically provide catastrophic coverage for perils that present severe property exposures; examples being flood and earthquake.
A common misconception is that a DIC policy is designed to simply increase property limits, but this is not the case. The DIC actually broadens coverage by providing additional limits of coverage for specific perils, when the business’s primary markets won’t provide adequate limits of coverage for their needs. DIC policies provide coverage for perils that are excluded from primary policies.
How can a business decide if it needs DIC coverage? They should complete a review of their current policy with the help of their insurance agent or broker, who will look at their current policy levers and determine if they are satisfactory for the company’s insurance coverage needs.
It’s important for company directors to remember that there is no standard DIC coverage form. Carriers each draft their own forms, so language in the policy should be carefully reviewed by company management and their insurance agent, before any agreements are made on insurance coverage terms.
To learn more about Vikco Insurance Services, Inc. and the products they offer, please contact Brian Thomas Cindric at 925.678.2103.
K2 Insurance Services, LLC was formed by two insurance industry veterans with the purpose of acquiring managing general agents and developing multi-line programs. Our goal is to distribute innovative products through retail and wholesale distribution channels. To learn more about our services and partners, please contact us today at (855) 976-8113 or visit K2INS.COM