Short answer
Primary and non-contributory is contract wording that sets the order policies pay in. "Primary" means your policy responds first; "non-contributory" means your insurer will not ask the other party's insurer to share the loss. IRMI describes it as a term used in contract insurance requirements to stipulate the order in which multiple policies triggered by the same loss respond. On auto policies, it is added by endorsement (ISO's version is CA 04 49).
- It usually travels with additional insured status, but it is a separate requirement.
How it plays out on a claim
Picture a crash involving your truck at a shipper's dock. The injured party sues you and the shipper. The shipper is an additional insured on your auto policy and also has its own insurance.
Without primary and non-contributory wording, the "other insurance" clauses in the two policies decide who pays and in what share, and insurers can argue about it. With it, your policy pays first, up to its limits, for the claims it covers, and does not seek contribution from the shipper's insurer. That is why shippers and some brokers ask for it: they want their own insurance kept out of claims that come from your operations.
What delivers it on the policy
The contract requirement is not met by a certificate box. It needs policy wording. ISO's CA 04 49 endorsement replaces or supplements the "other insurance" condition so the auto policy pays first and does not seek contribution, for the parties and situations it describes, and it can attach to the business auto and motor carrier forms. Many trucking insurers use their own versions, which is fine as long as the wording matches what the contract requires.
Watch the conditions. Endorsements commonly require a written contract, signed before the loss, that calls for primary and non-contributory coverage. IRMI also notes that umbrella and excess policies often have their own "other insurance" wording and may not follow the underlying policy's primary status, so if the contract requires it on the umbrella too, check that wording separately.
Common review checklist
- Does the contract require primary and non-contributory on auto, general liability, or both?
- Is the requesting party also an additional insured?
- Does the endorsement trigger on a written contract, and is your contract signed?
- Does the umbrella follow?
These requests often appear together with a waiver of subrogation. Our broker agreement decoder flags this language.
Common questions
Is primary and non-contributory the same as a waiver of subrogation?
No. Primary and non-contributory sets which policy pays first. A waiver of subrogation stops your insurer from recovering from the other party after it pays. IRMI notes the two are separate.
Does it make me responsible for the shipper’s own negligence?
It deals with the order of insurance, not fault. What your policy covers for an additional insured depends on the endorsement wording. Have an attorney review the indemnity clause.
Will my insurer charge for it?
Some do, some include it in a blanket endorsement. Ask before you sign the contract.
Sources
- IRMI glossary: primary and noncontributory. Definition as contract wording that sets the order in which policies respond.
- IRMI, Primary and Noncontributory (expert commentary). Priority of coverage; distinction from waiver of subrogation; umbrella and excess other insurance wording.
- IRMI: primary and noncontributory. Definition of primary and noncontributory wording.
This page explains insurance, not law. Have your attorney review indemnity and contract language; our job is making the insurance match it.
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