Primary and noncontributory
Also called P&NC or primary noncontributory
Definition
Primary and noncontributory is policy wording that makes your insurance pay first for a covered claim, without asking the additional insured’s own insurance to share the cost.
When a client or landlord is an additional insured on your policy, one claim can involve two insurers: yours and theirs. Primary and noncontributory wording settles who pays. Your policy goes first, and it doesn’t ask theirs to chip in.
How it works
The phrase combines two promises:
- Primary means your policy responds first, before any other insurance the additional insured has.
- Noncontributory means your insurer won’t seek contribution, or a share of the cost, from the additional insured’s own policy.
Without this wording, the “other insurance” clauses in two policies can lead the insurers to split a claim or argue over who pays first. The additional insured’s own policy, and its claims history, could take a hit for a problem that came from your work. Primary and noncontributory wording keeps the claim on your policy.
It’s usually added by endorsement, and many endorsements apply it only when a written contract requires it. A certificate of insurance may note primary and noncontributory status, but the certificate doesn’t create it. The policy has to include the endorsement.
Where you’ll see it
General contractors, property managers and landlords commonly ask for it, along with additional insured status and a waiver of subrogation. It shows up in the insurance section of subcontracts, leases and client agreements, most often for general liability, near the limits you’re required to carry.