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US exposure
Primary and non-contributory means your policy pays first for a covered loss and does not ask the other party’s insurer to share it. It matters because UK policies commonly share overlapping losses, so agreeing to it without an endorsement can leave you in breach of contract.
Part of: Public liability with US jurisdiction
In short
US contracts often require a supplier’s liability policy to cover the client as an additional insured on a primary and non-contributory basis. Primary means your policy pays first; non-contributory means your insurer won’t seek a share from the client’s own insurer. That overrides the usual other insurance clauses. UK marine insurance law starts from the opposite position: under the Marine Insurance Act 1906, insurers covering the same loss contribute rateably, and UK liability wordings commonly carry a rateable proportion condition. Before agreeing, check your wording, ask your broker for an endorsement, and confirm the policy includes US jurisdiction.
Last reviewed 7 October 2026 by the Apex commercial team.
The phrase has two parts, and each does a different job.
In US contracts the wording usually sits alongside an additional insured requirement. Your client, the venue or the main contractor becomes an additional insured on your liability policy, and the contract says that cover must be primary and non-contributory to any insurance the client has. The effect is that for claims arising from your work, your policy pays first and in full up to its limit.
Most liability policies say what happens when another policy covers the same loss. These clauses commonly take one of three forms:
| Type of clause | What it usually says | Effect when two policies apply |
|---|---|---|
| Primary | This policy pays first | Pays before any excess policy |
| Excess | This policy pays only after other valid insurance is used up | Steps back if another policy applies |
| Contribution or pro rata | This policy pays only its share of the loss | Losses are shared between insurers |
A client’s own policy will often have an excess clause for losses where it is only an additional insured on someone else’s cover. Without a primary and non-contributory provision, two insurers may each argue the other should pay first, and the client is caught in the middle. The provision settles the order in advance: your policy first, theirs only after yours.
The client’s requirement only works if your policy says the same thing. A contract clause binds you; it does not bind your insurer. If your wording keeps a contribution or excess clause for additional insureds, you may be in breach of contract while your insurer does exactly what its policy says.
The UK statutory starting point, in marine insurance, is that insurers covering the same loss share it. The Marine Insurance Act 1906 sets this out. Section 32 describes an assured as “over-insured by double insurance” where two or more policies cover the same adventure and interest and the sums insured exceed the indemnity allowed. Section 80 then says that each insurer is bound “to contribute rateably to the loss in proportion to the amount for which he is liable under his contract”.
UK non-marine liability policies commonly reflect the same idea in their own wording, through a rateable proportion or other insurance condition: if other insurance covers the loss, the policy pays only its share. That is the opposite of non-contributory.
UK contracts also tend to deal with third-party cover differently. Instead of making the client an additional insured, a UK public liability policy commonly includes an indemnity to principals clause, which extends cover to a principal for liability arising from the insured’s work, subject to the policy terms. Whether that clause can be described as primary and non-contributory depends on the wording.
| Policy | What usually happens | What to watch |
|---|---|---|
| Public and products liability | Some insurers will endorse primary and non-contributory cover for named parties, where you are contractually required to provide it | The policy must include US jurisdiction; the endorsement may be limited to liability arising from your work |
| Employers’ liability | Rarely relevant to a US client’s requirement | US workers’ compensation is a separate question |
| Professional indemnity | PI usually does not provide additional insured cover, so primary and non-contributory wording rarely fits | Explain this to the client rather than ticking a box |
| Contractual liability | Many liability policies restrict cover for liability you take on only by contract | A broad indemnity plus primary wording can stretch beyond what the policy covers |
The practical costs of agreeing are that your limit is eroded first, your claims record carries the loss, and your excess applies. The client’s insurer may never be involved. See also hold harmless and indemnity agreements.
If this affects your business, these are the points a broker will ask about:
Speak to a broker
Liability cover for US contracts, placed by a named broker
Send us your current schedule, or tell us about the property if you are arranging cover for the first time. Or leave your number and a named broker will call you back, usually the same working day.
Apex Insurance Brokers is an independent insurance broker based in Bristol, established in 2009 and authorised and regulated by the Financial Conduct Authority. We are not tied to one insurer: we work with over 30 markets, including Lloyd’s syndicates through wholesale brokers, and every client has a named broker who handles the placement, mid-term changes, certificates for clients and the renewal.
It means your liability policy must pay first for a covered claim involving the other party, usually as an additional insured, and your insurer must not seek a share from that party’s own insurance. It sets the order of payment between policies. It does not increase your limit.
No, but they usually go together. Additional insured status gives the other party cover under your policy. Primary and non-contributory decides that your policy pays first and alone, rather than sharing with their insurance. A contract can ask for one without the other, so read the clause carefully.
Not as standard. UK liability wordings commonly include a rateable proportion or other insurance condition, so insurers share overlapping losses. Some insurers will endorse primary and non-contributory cover for a named party where a contract requires it, subject to the policy terms. Ask your broker before you sign.
It means each insurer pays a share of a loss covered by more than one policy, in proportion to its liability. Section 80 of the Marine Insurance Act 1906 sets this out for marine insurance, and UK non-marine wordings commonly include similar rateable proportion conditions.
No. A certificate summarises the policy; it doesn’t change it. If the contract requires primary and non-contributory cover, the policy itself must say so, usually by endorsement. Writing it on a certificate when the policy doesn’t provide it can mislead the client.
Apex arranges liability cover for UK businesses signing US contracts. Send us the insurance clause and we’ll check what your policy needs before you sign. Or call 0117 325 0027.
Start your quote Call 0117 325 0027Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances. Cover is always subject to the insurer’s acceptance and the policy terms, and this page does not guarantee that cover will be available or on what terms.
