Business Insurance Glossary

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Debris removal coverage

Covers the cost of removing debris after damage from fire or other covered peril that requires debris removal before reconstruction of the damaged building can begin.

Declarations page

A one-page document that summarizes your policy. It contains several important pieces of information, including the policyholder's name, list of coverages, limits, deductibles, premium charged, and effective date of coverage.

Declined Risk

A proposed policyholderd who is considered to present a risk that is too great for an insurance company to cover.

Deductible

The portion of a claim that you pay. Having a higher deductible amount will lower your insurance premiums but increase your costs if there in a loss.

Degree of care

Minimum of care owed by one party for the physical safety of another.

Difference in conditions (DIC)

DIC insurance provides coverage designed to close specific gaps in standard insurance policies and is usually available only for larger industrial or commercial risks. It allows coverage to be customized to extend to such exposures as water damage, flood, collapse, earthquake, landslide, etc., according to the insured's needs. DIC coverage may be provided by means of a separate insurance policy or it may be added by endorsement to the basic policy.

Direct incurred loss

The property loss in which the insured peril (source of the loss) is the proximate (direct) cause of damage or destruction.

Direct Written Premium

The total premiums received by a property and liability insurance company without any adjustments for the premiums to the reinsurers.

Disaster

A natural or man-made event that negatively affects life, property, livelihood or industry often resulting in permanent changes to human societies, ecosystems and the environment.

Drought

A drought is a long lasting weather pattern consisting of dry conditions with very little or no precipitation.  During this period, food and water supplies can run low, and other conditions, such as famine, can result.  Droughts can last for several years and particularly damaging in areas where residents depend on agriculture for survival.