Glossary / Vendor requirements / Primary & Noncontributory

Primary & Noncontributory

Also known as: P&NC · Primary Non-Contributory

Vendor requirements DICEE: Endorsements

A clause requiring your policy to pay first, without seeking contribution from the other party's insurance.

When your policy is endorsed as "primary and noncontributory" for an additional insured, your coverage responds first to a claim—and doesn't ask the additional insured's own policy to share the cost.

Common vendor contract language

"Vendor's insurance shall be primary and non-contributory with respect to any insurance or self-insurance maintained by Client."

Related Terms

Additional Insured Certificate of Insurance (COI) Endorsement Waiver of Subrogation

Where you'll see it

Vendor contractCOIPolicy

Why it matters for your business

  • Frequently required alongside additional insured status in vendor contracts.
  • Without it, the additional insured's own policy might have to contribute.
  • Many GL policies can add this endorsement at no additional premium, though availability varies by carrier and policy form.

People also ask

Why do vendors require primary and noncontributory?

Vendors want to ensure that if a claim arises from your work, your insurance pays first—without their own policy having to contribute. This protects their loss history and premiums from being affected by your operations.

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Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.