GLOBAL PROGRAMMES & CROSS-BORDER COVER
Difference in limits (DIL) definition
Difference in limits is an international insurance policy structure that provides excess limits above local policies in a multinational insurance programme.
In practice, this means a commercial insurance policy used in international programmes to provide additional, higher limits of indemnity above those available under local policies. Where a locally issued policy carries a limit lower than the level of cover the insured requires, the difference in limits policy, typically issued as part of a master policy, responds in excess of the local limit to bring total cover up to the required amount. See also: difference in conditions. This gives insurers, brokers, reinsurers and risk managers a shared way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in international insurance, multinational programmes and local regulatory analysis. It helps explain how insurance can be arranged compliantly across different countries and local insurance markets. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Difference in limits (DIL) is closely related to difference in conditions, master policy, local policy and global insurance programme. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- International insurance, multinational programmes and local regulatory analysis.
- Purpose
- Helps explain how insurance can be arranged compliantly across different countries and local insurance markets.
- Important because
- Multinational programmes often depend on the relationship between local policies, master policies and reinsurance structures.
- Related terms
- difference in conditions, master policy, local policy and global insurance programme.
Example of difference in limits cover
A local policy provides a liability limit of EUR 1 million, while the master programme provides EUR 5 million. Difference in limits cover may respond above the local limit.