Primary and Noncontributory
Definition. Primary and Noncontributory is a contract requirement that your liability policy must pay BEFORE any other policy and without seeking contribution from other applicable coverage.
Also known as: P&NC, Primary & Non-Contributory
Routinely demanded in construction subcontracts, commercial leases, and vendor agreements. Two parts: (1) Primary means your policy pays first when multiple policies might apply. (2) Noncontributory means your insurer waives the right to demand the certificate holder's insurer share the loss.
Without this endorsement, your insurer might delay payment while negotiating contribution with the other party's insurer. The contract holder typically wants speed: pay first, sort out reimbursement later.
Example
A general contractor's subcontract requires the sub's GL policy to be Primary and Noncontributory in favor of the general. Sub-contractor accidentally damages adjacent property. Sub's GL pays the full claim, doesn't seek contribution from the general's GL, even though the general's GL might also apply.
Sources cited
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Reviewed by California-licensed Property & Casualty insurance agent
Jason Wootton (CA License #0I94454). Not insurance advice, an individual recommendation, or a solicitation in any state. Insurance regulations vary by state. For specific coverage decisions, consult a licensed insurance agent in your state.
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