Primary and non-contributory insurance, explained
Learn what primary and non-contributory wording means, why GCs and owners require it, how it pairs with additional insured status, and how to spot gaps.
Primary and non-contributory means a vendor's liability policy responds first to a covered claim, and the additional insured's own insurance does not have to share the loss. GCs and owners require it so that their own policies are not touched while the vendor's policy has limits available. On a certificate it is not a checkbox. You find it in the description of operations, and it should be backed by an endorsement.
What each word means
- Primary means this policy pays first. Its limits are used before other insurance that might also apply.
- Non-contributory means the other insurance does not have to contribute. The additional insured's insurer is not asked to split the loss with the vendor's insurer.
Standard liability policies often treat coverage for an additional insured as excess over the additional insured's own insurance, or share it with that insurance, unless the policy says otherwise. The primary and non-contributory wording changes that for the party named, usually when a written contract requires it. The exact result depends on the policy language, so the wording and the endorsement matter.
Why GCs and owners ask for it
If a vendor's work causes a claim, the GC or owner wants the vendor's policy to answer it, not their own. Using their own policy can raise their premiums and erode their limits. Requiring primary and non-contributory coverage keeps the claim with the party whose work caused it, up to the limits purchased.
How it works with additional insured status
Primary and non-contributory wording applies to someone who has coverage under the policy. That is why it is almost always paired with additional insured status. If you are not an additional insured, there is generally no coverage for the wording to make primary. If you are, the two together say: you are covered, and this policy goes first. See additional insured endorsements.
How it shows on the ACORD 25
There is no box for it. The ACORD 25 has columns for additional insured and waiver of subrogation, but none for primary and non-contributory. Agents typically write it in the description of operations, for example that coverage is primary and non-contributory where required by written contract. See how to read an ACORD 25.
Endorsement vs description of operations
These are not the same thing:
- The endorsement is part of the policy. Many carriers use a blanket primary and non-contributory endorsement that applies when a written contract requires it. Some policies include the wording in the additional insured endorsement or the policy form itself.
- The description of operations is the agent's note on the certificate. The form states a certificate does not amend or extend coverage. If the text is there but the endorsement is not, the policy may not do what the text says.
Both matter. The text tells you what the agent intends. The endorsement is what binds the carrier.
Common gaps
- The description of operations says nothing about primary and non-contributory, so you cannot tell.
- It says primary and non-contributory, but the certificate does not show additional insured status.
- It applies to general liability only, while the contract also requires it on auto or umbrella.
- The wording says where required by written contract, but there is no written contract with the vendor yet.
- The umbrella is not written to follow the primary wording. See umbrella vs excess liability.
- A renewal certificate drops wording that was on the prior one.
How to specify it
State in the subcontract which policies must be primary and non-contributory, and for whom. Name the parties exactly. Ask that the endorsement be provided on request. Wording of the insurance clause is a legal and insurance question, so have your attorney or insurance professional review it. See writing subcontract insurance requirements.
Check this automatically
In ComplySub you mark primary and non-contributory as a requirement once, along with additional insured and the other items. Vendors upload a certificate through a link without an account, and ComplySub checks the description of operations for the wording and flags it when it is missing. It reminds the vendor and their agent to correct it. It reads the certificate and does not see the policy endorsement, so ask for the endorsement on larger jobs. ComplySub is not legal or insurance advice.
This guide is general information, not legal or insurance advice. Insurance and licensing rules vary by state, carrier, and contract; confirm what applies to you with your insurance professional, attorney, or licensing board.