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Business Insurance · GL Contract Clauses
Primary & non-contributory, in plain English.
If a contract or a general contractor is asking for 'primary and non-contributory' coverage, they are telling you how they expect the insurance to pay if something goes wrong. It sounds like legal boilerplate, but it changes the order of payment between your policy and theirs. Here is what it means and how we add it.
At a Glance
- Type
- GL endorsement
- Common form
- CG 20 01
- Requested by
- GCs, landlords, clients
- Pairs with
- AI + waiver
Quick answer
'Primary and non-contributory' is contract wording that controls the order in which two insurance policies pay a claim. 'Primary' means your policy pays first, before the other party's policy. 'Non-contributory' means your insurer will not demand that the other party's insurer chip in or share the loss proportionally. It is almost always requested by a customer, general contractor, landlord, or municipality who has been named as an additional insured on your general liability policy — they want your coverage to respond fully before theirs is ever touched. It is added by endorsement (commonly ISO form CG 20 01) and is usually paired with additional insured status and a waiver of subrogation. Ellie Insurance Group is an independent Florida agency (founded 2014, Tampa) that reviews your contracts and adds the exact endorsements required so you can sign and get to work.
Who needs this
Who gets asked for this wording
Subcontractors & trade contractors
General contractors almost universally require primary and non-contributory wording in their subcontracts before you can start on site.
Vendors & suppliers
Large clients and retailers require it in vendor agreements so their own coverage is never the first to pay.
Tenants
Commercial leases frequently require the tenant's GL to be primary and non-contributory for the landlord as additional insured.
Service providers on client premises
Janitorial, security, staffing, and maintenance firms working at a client site are routinely asked for it.
Anyone bidding public or institutional work
Municipalities, schools, and hospitals build primary and non-contributory requirements into their standard contracts.
Businesses with an umbrella
The requirement often needs to follow up the tower, so the umbrella's primary and non-contributory posture matters too.
What it covers
What the wording does — and doesn't — do
Primary and non-contributory is about payment order, not about expanding what is covered. It coordinates two policies; it does not create new coverage.
- Establishes your policy as primary
For the exposure you agreed to cover, your general liability policy responds first, ahead of the other party's coverage.
- Waives the right to contribution
Your insurer agrees not to demand that the other party's insurer share the loss proportionally.
- Protects the additional insured's own limits
The other party's policy and loss history are shielded for claims arising out of your work.
- Coordinates with additional insured status
It only makes sense alongside additional insured coverage — the two are designed to work as a pair.
- Can be blanket or scheduled
Provided per contract (blanket) or by naming a specific party, depending on the endorsement used.
- Applies to the scope you agreed to
It governs claims tied to your operations or the contract — it does not make your policy primary for everything the other party does.
What it doesn't cover
What this wording is NOT
Contracts often lump several requirements together. Primary and non-contributory is only one of them, and it has limits.
- It is not additional insured status (that is a separate endorsement)
- It is not a waiver of subrogation (also separate)
- It does not expand the underlying coverage or raise your limits
- It does not cover the other party's sole negligence unless coverage otherwise applies
- It does not apply beyond the scope you agreed to cover in the contract
- It is not automatic — it must be endorsed onto the policy
- It does not override policy exclusions on the underlying GL form
Cost drivers
What affects availability and cost
Carrier and class of business
Availability and pricing of the endorsement vary by carrier appetite and the type of operation.
Blanket vs. scheduled
Blanket endorsements that apply per written contract are convenient but priced differently than naming each party.
Breadth of the wording
Very broad primary and non-contributory language can affect underwriting and premium.
Contract requirements
Some contracts demand specific ISO forms or edition dates that not every carrier offers.
Umbrella follow-form
Requiring the wording to extend to the umbrella can affect the excess layer's terms.
Overall account profile
Loss history and operations influence whether the carrier offers broad contract-driven endorsements.
Quote checklist
What we'll need to add it correctly
- The contract or the insurance-requirements exhibit
- The exact wording or ISO form/edition date the other party requires
- Whether additional insured and waiver of subrogation are also required (they usually are)
- Whether the requirement must extend to your umbrella policy
- Current general liability declarations and endorsement schedule
- The name and role of the party requesting it (client, GC, landlord, municipality)
See it in action
How the payment order changes with this wording
A simple scenario shows why general contractors insist on it.
A subcontractor is hired by a general contractor. The subcontract requires the sub to name the GC as an additional insured and to make the sub's coverage primary and non-contributory. A visitor is injured due to the sub's work, and both the sub and the GC are sued.
Without the wording: both policies might respond on a shared basis, the GC's own GL limits get eroded, and the claim shows up on the GC's loss history — exactly what the GC was trying to avoid by transferring the risk.
With the wording: the sub's policy pays first and in full for the covered claim, the sub's insurer does not chase the GC's insurer for contribution, and the GC's own coverage is never touched. The risk has been transferred exactly as the contract intended.
The standard contract trio
Primary & non-contributory rarely travels alone
Most construction and vendor contracts require these three endorsements together. Knowing how they differ prevents a certificate from being rejected.
- Additional insured
Extends your policy's protection to the other party for claims arising out of your work. Answers 'whose policy protects them?'
- Primary & non-contributory
Controls the order of payment — your policy pays first and your insurer won't seek contribution. Answers 'which policy pays first?'
- Waiver of subrogation
Your insurer gives up its right to recover from the other party after paying a claim. Answers 'can my insurer come after them later?'
Definitions here follow standard industry usage (IRMI). The exact effect depends on the specific endorsement and policy language; we confirm the forms match your contract before you rely on them.
Contract asking for primary & non-contributory wording?
FAQ
Frequently Asked Questions
- It is two linked ideas. 'Primary' means your policy responds first for a covered claim, ahead of the other party's own coverage. 'Non-contributory' means your insurer agrees not to seek contribution from the other party's insurer — it will not force their policy to share the loss on a proportional basis. Together, the wording pushes the full first-dollar defense and indemnity onto your policy for the exposure you agreed to cover.
- When they are named as an additional insured on your policy, they want your coverage to fully protect them without eroding their own limits or raising their own loss history. Primary and non-contributory wording ensures that for claims arising out of your work, your policy is the one that pays — theirs stays untouched. It is a standard risk-transfer requirement in construction and vendor contracts.
- It is added by endorsement. A widely used ISO form is CG 20 01, 'Primary and Noncontributory — Other Insurance Condition,' which amends the policy's other-insurance condition. Some additional insured endorsements also build in primary and non-contributory language. Your agent confirms the specific form your carrier uses and that it matches the contract wording.
- No — they work together but are different. Additional insured status extends your policy's protection to the other party. Primary and non-contributory wording controls the payment order between policies. Most contracts require both, plus a waiver of subrogation, as a package.
- Often the endorsement is available at little or no additional premium, but it depends on the carrier, the class of business, and the breadth of the wording requested. Broad or blanket primary and non-contributory endorsements can affect pricing. We confirm cost and availability with the carrier before you rely on it.
- You may be in breach of the insurance requirements in the contract, and if a claim arises, your policy might pay only on a shared or excess basis — leaving the other party exposed and potentially exposing you to the difference. That is why the endorsement should be in place before work begins, and the certificate should reflect it.
- Yes. Many carriers offer blanket primary and non-contributory endorsements that apply automatically when a written contract requires it, rather than naming each party. Blanket wording is convenient for businesses that sign many contracts, but the exact trigger language matters and should be reviewed.
Keep reading
Explore related coverage
General Liability
The policy this endorsement attaches to.
Additional Insured
Almost always requested together.
Waiver of Subrogation
The third piece of the standard contract trio.
Certificate of Insurance
How this wording gets evidenced to the requester.
Contractors Insurance
Where these requirements show up most often.
Umbrella Liability
Follow-form primary & non-contributory up the tower.
Sources
Authoritative references
Coverage descriptions and regulatory figures on this page are general summaries reviewed against the references above and are not a statement of coverage, legal advice, or a guarantee of eligibility or price. Last reviewed . Requirements and policy terms change — always confirm current rules with the relevant agency and verify coverage against the actual policy and a licensed agent.
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Next step
Get the exact endorsement your contract requires
Send us the contract or the insurance-requirements page and the current general liability declarations. An Ellie agent will confirm whether primary and non-contributory wording is in place, add the correct endorsement, and issue a certificate that matches what the other party is asking for.