Primary Non Contributory Endorsement Isosceles

Recently I wrote this blog about the Primary & Non-Contributory Wording Endorsement. It was a nice article, and all true. What I want to tell you t. Primary and noncontributory is actually about the priority of insurance coverage—which policy will respond as primary insurance and which policy will respond as excess insurance. In other words, whose policy will be first and whose will be second.

Have you – a business owner – ever had to get a Primary and Non-Contributory Wording endorsement on your general liability policy? Have you – a business owner – ever wondered what Primary and Non-Contributory Wording actually means? Primary and Non-Contributory Wording is one of the least understood insurance concepts in existence.

I know because I frequently talk to contract givers – those who require others to have the Primary and Non-Contributory Wording endorsements – and they often have no idea what they are, although they absolutely require them. Before I explain what they are, here are a couple of things to know: First, you will only need a Primary and Non-Contributory Wording endorsement from the entity that has also required you to add them as an Additional Insured on your policy. Tv Program Cryptic Quiz What Is Round And Very Dangerous.

(If you want to know what an Additional Insured endorsement is, check out my previous blog post ). Second, insurance companies can charge you for them. Pricing can be around $100 per year per Primary and Non-Contributory Wording endorsement. But sometimes, if you’re lucky, they’re free. So, what is this Primary and Non-Contributory Wording thing? It is an endorsement that makes your insurance policy the first one to pay and prohibits your insurance policy from seeking contribution from another insurance policy.

That begs the question: what is contribution? It is simply sharing in the payment of a claim. Let’s say that you – a business owner – have a home based business selling gourmet artisan alcohol-infused marshmallows online. (Yes, these really exist and they’re incredible – see ).

You have a business owner’s policy that covers your inventory. And of course, you have a homeowners policy on your home. One day while making s’mores (for a little R&D, of course), your bonfire gets out of control and burns your home to the ground, including your entire marshmallow inventory. You file a claim on your business owner’s policy to recover the loss. The claims adjuster is ready to pay for the loss, but just before writing the check, asks a curious question: “Do you have a homeowners policy?” “Yes, of course,” you say. “Thank you,” says the claims adjuster, as he and his calculator slither out the door.