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Gloria Said:

Concerning commercial insurance for general liability, what does primary and non-contributory actually mean?

We Answered:

Ah, the old "additional insured on a primary and non-contributory basis" clause.

It's most easily illustrated with an example: Joe Construction subs out some work to Jack's Plumbing, requesting this wording. It means, if Joe Construction is sued, Jack's Plumbing's GL policy covers. They pay first (primary), and Joe Construction's policy doesn't have to kick in (non-contributory).

The ONLY way I ever get an underwriter to agree to that wording, is by adding more wording : "additional insured on a primary and non-contributory basis, but limited to the operations of the insured."

Otherwise, if the general or another sub causes the accident, Jack's Plumbing's GL policy has to pay. First, and without recourse to the general.