Which type of policy covers on an "all-risks" basis to address gaps in commercial property coverage, especially for flood and earthquake?

The difference in conditions (DIC) policy is designed specifically to fill the gaps in traditional commercial property coverage. Standard commercial property insurance often excludes certain high-risk events such as floods and earthquakes. The DIC policy addresses these specific exclusions by providing coverage on an "all-risks" basis, meaning it covers any loss or damage to property unless specifically excluded in the policy itself.

This type of policy is particularly important for businesses that face unique risks not typically covered under standard policies. In scenarios where a business operates in an area prone to earthquakes or floods, relying solely on standard commercial property insurance could leave significant vulnerabilities. The DIC policy ensures that these gaps are filled, providing comprehensive protection against a broader range of risks.

Other types of policies, such as comprehensive coverage, general liability policies, and extended coverage policies, have more specific scopes and limitations. They do not provide the extensive, all-encompassing coverage that a DIC policy offers for risks typically excluded from traditional policies. Hence, the difference in conditions policy is the appropriate choice for addressing these specific commercial property coverage gaps.