Primary and Noncontributory
A policy provision requiring the named insured's coverage to pay first and not seek contribution from the additional insured's own policy.
What It Is
Primary and Noncontributory is a policy provision — typically added by endorsement — that establishes two things: first, that the named insured's CGL policy will respond as primary coverage for the additional insured, and second, that it will not seek contribution from the additional insured's own liability policy.
Without this language, when both the named insured and the additional insured carry CGL coverage, their policies may be considered concurrent and required to share the loss on an "other insurance" basis. The primary and noncontributory endorsement overrides the standard other insurance clause.
The most common ISO endorsement for this purpose is CG 20 01 04 13, though many carriers include primary and noncontributory language within their proprietary additional insured endorsements.
Why It Matters for Brokers
Nearly every upstream contract in construction, real estate, and transportation requires primary and noncontributory status. If the broker fails to secure this endorsement, the additional insured's own policy could be dragged into a claim that should have been entirely the named insured's responsibility. This creates friction between parties and can trigger an E&O claim against the broker who failed to deliver on the contract requirement.
Real-World Example
A roofing subcontractor carries a $1M/$2M CGL policy and is required by the GC's subcontract to provide primary and noncontributory coverage. A worker drops materials off the roof, injuring a pedestrian who sues for $750,000. The GC is named as an additional insured. Because the sub's policy is endorsed primary and noncontributory (CG 20 01 04 13), the sub's insurer pays the full $750,000 defense and settlement without seeking any contribution from the GC's own $1M CGL policy.
Common Mistakes
- 1Confusing 'primary' with 'primary and noncontributory' — a policy can be primary but still seek contribution from other primary policies without the noncontributory language.
- 2Not verifying that the carrier actually endorsed the policy with primary and noncontributory language after the request was submitted.
- 3Issuing a certificate that checks the 'primary and noncontributory' box without confirming an endorsement exists on the policy to support it.
How brokerageaudit.com Handles This
Policy Checker scans for primary and noncontributory endorsements (CG 20 01 or equivalent carrier-proprietary forms) and flags policies where the endorsement is missing but the contract requires it. COI Manager prevents certificates from being issued with the primary and noncontributory box checked unless a supporting endorsement is verified in the policy file.