Primary and Noncontributory

When you add a client as an additional insured on your GL policy, both your policy and the client's own policy could potentially respond to a claim arising from your work. Without a primary and noncontributory endorsement, the two carriers might argue over who pays first, delaying the claim resolution. The primary and noncontributory provision eliminates this dispute by making your policy respond first and in full, without seeking contribution from the additional insured's policy.

For tree service companies, this endorsement is a standard contract requirement from general contractors, property managers, and government entities. When a municipality hires you to remove hazard trees along city streets, their contract will typically require your GL to be primary and noncontributory with respect to the city's own insurance. This protects the city's loss experience and prevents their carrier from being drawn into claims arising from your operations.

The endorsement is straightforward and usually inexpensive — often $50-$100 or included in a contractor enhancement package. But failing to provide it when contractually required can disqualify you from a project just as quickly as failing to meet minimum limits.

One nuance: primary and noncontributory status only applies to claims arising from your operations on behalf of the additional insured. If the additional insured has independent negligence unrelated to your work, the provision does not force your policy to cover it. The endorsement defines the priority of payment, not the scope of coverage.