Lenders & Contracts · Insurance Term
Primary and Noncontributory (P&NC)
Definition
Primary and noncontributory is wording that makes your liability policy respond first for a party you've added as an additional insured, without asking that party's own insurance to share the loss. Landlords, lenders and project owners commonly require it in contracts.
In Plain English
When you add someone as an additional insured, two policies may cover the same claim: yours and theirs. 'Primary' means your policy pays first. 'Noncontributory' means your insurer won't ask the other party's insurer to chip in.
Contracts and leases often require this so the other party's own insurance and loss history stay untouched. It usually applies only when your policy has an endorsement granting it, and often only when a written contract requires it. A certificate of insurance that says 'primary and noncontributory' does not by itself change the policy.
It often comes as a package with a waiver of subrogation and indemnity terms. Read them together, because together they decide who ultimately pays.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical and simplified: a tenant's lease requires the tenant's liability policy to be primary and noncontributory for the landlord. A customer slips in the tenant's store and sues both. If the endorsement is in place, the tenant's insurer would usually defend and pay for the landlord first, before the landlord's own policy is involved.
Why It Matters for Texas Property Owners
For construction contracts, the Texas Anti-Indemnity Act (Ins. Code Ch. 151) can make a contract requirement for additional insured coverage void to the extent it would cover the other party in ways the Act prohibits, with some exceptions. That can affect how primary and noncontributory requirements work on Texas projects. Have a Texas attorney review construction contract insurance terms.
What to Watch For
- Check that an endorsement on the policy actually grants primary and noncontributory status — not just the certificate.
- Confirm whether the endorsement requires a written contract signed before the loss.
- Review your leases and vendor contracts to see who must provide it to whom.
- Make sure your umbrella or excess policy matches the requirement if the contract asks for it.
Common Questions
Is it enough for the certificate of insurance to say 'primary and noncontributory'?
Usually not. A certificate only summarizes coverage; the policy and its endorsements decide what applies. Ask for a copy of the endorsement.
Should I require tenants to give me primary and noncontributory coverage?
Many landlords do, so a claim from a tenant's space doesn't land on the landlord's own policy first. Your lease and your attorney should set the exact requirement.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write