Primary Noncontributory on COI
The indication on a certificate that the insured's policy is endorsed to be primary and noncontributory for the certificate holder's benefit.
What It Is
Primary Noncontributory on COI refers to the indication on an ACORD 25 certificate of insurance that the insured's liability policy has been endorsed to respond on a primary and noncontributory basis for the benefit of the additional insured (certificate holder). This is shown by checking the primary/noncontributory checkbox in the CGL section of the ACORD 25 and referencing the endorsement in the Description of Operations.
As with additional insured status, the certificate indication does not create primary and noncontributory status — the underlying policy endorsement (CG 20 01 or equivalent) does. The certificate merely reports the endorsement's existence. If the box is checked but no endorsement exists, the certificate is misrepresenting the coverage.
Primary and noncontributory status is almost always required in conjunction with additional insured status. The two provisions work together: additional insured status gives the certificate holder coverage, and primary and noncontributory ensures that coverage responds first without contribution from the certificate holder's own policy.
Why It Matters for Brokers
The primary and noncontributory checkbox on the ACORD 25 is one of the most commonly checked — and most commonly unverified — provisions. Certificate holders expect to see it checked because their contracts require it. Brokers feel pressure to check the box to satisfy the requirement. But without a verified endorsement, the checkbox is meaningless. This gap creates significant E&O exposure when a claim arises and the additional insured discovers their "primary" coverage does not actually exist.
Real-World Example
A GC's subcontract requires all subs to provide primary and noncontributory CGL coverage. The sub's broker issues a certificate with the primary/noncontributory box checked. A $500,000 claim arises involving both the GC and the sub. The GC tenders to the sub's insurer as additional insured on a primary basis. The sub's insurer reviews the policy and finds no CG 20 01 or equivalent endorsement. The sub's policy shares the loss with the GC's policy on an other insurance basis — each paying 50%. The GC pays $250,000 that should have been the sub's responsibility and sues both the sub and the sub's broker.
Common Mistakes
- 1Checking the primary/noncontributory box on the certificate without verifying the endorsement exists on the policy.
- 2Assuming additional insured endorsements automatically include primary and noncontributory language when they are separate provisions requiring separate endorsements.
- 3Not referencing the specific primary/noncontributory endorsement form number in the Description of Operations section.
How brokerageaudit.com Handles This
COI Manager requires a verified primary and noncontributory endorsement (CG 20 01 or carrier equivalent) before allowing the checkbox to be selected on any certificate. Policy Checker scans for this endorsement and maps it to the account's contract requirements. The endorsement form number is automatically included in the Description of Operations when the box is checked.