Primary and non-contributory is contract insurance wording that sets which policy pays first. IRMI calls it "a term commonly used in contract insurance requirements to stipulate the order in which multiple policies triggered by the same loss are to respond." The contractor's policy pays first, without asking the other party's insurer to share the loss.
Why It Matters for Snow Contractors
When a property owner is named as an additional insured on your policy, both your policy and the owner's own policy might respond to the same slip and fall claim. Primary and non-contributory wording tells the insurers that yours goes first and the owner's does not contribute.
Clients may ask for it to keep claims arising from your work off their own policies. Intact Public Entities, which insures municipalities, recommends in its contract guidance that the contractor's insurance be primary.
Not every policy provides this automatically. If a contract requires it, your broker may need to confirm the policy wording or add an endorsement.
Example
A property manager is named as additional insured on your general liability policy, with primary and non-contributory wording. A visitor falls in a lot you service and sues the manager. Your insurer responds first, and the manager's insurer is not asked to share the cost, subject to the policy terms.
Related Terms and Guides
- Additional insured
- Certificates of insurance explained
- Insurance requirements for commercial snow contracts
General information only, not insurance or legal advice. Policy wordings differ; a licensed broker can explain how your own policy and contracts treat this.
Further reading: Insurance Bureau of Canada: Insurance glossary
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Frequently Asked Questions
Is primary and non-contributory standard on every policy?
No. It depends on the policy wording, and some policies need an endorsement. Ask your broker.
Why do municipalities ask for primary wording?
Contract guidance from Intact Public Entities recommends that the contractor's insurance be primary.