Glossary

Other insurance clause

A policy condition that decides which policy pays first, or how insurers share the cost, when more than one policy covers the same loss.

Also called: other insurance condition, other insurance provision, contribution clause, primary and excess clause

Liability

When two or more policies cover the same loss, the other insurance condition says who pays first. In the ISO general liability form, CG 00 01 (Section IV), the policy is primary unless an exception applies. It becomes excess over other property insurance covering the loss, such as fire or builders risk, and over other primary insurance available to you for premises or operations where you are an additional insured. When two primary policies both apply, the insurers share, by equal shares if every policy allows it, otherwise in proportion to their limits.

The clause drives contract language. A landlord or general contractor wants your policy to respond first and not seek contribution from its own insurance, which is what the primary and noncontributory endorsement, CG 20 01, delivers. Without it, a claim against an additional insured may land partly on that party's own insurer. Umbrella and excess policies, by design, sit above all underlying and "other" coverage.

Pitfalls arise when clauses collide. If two policies each claim to be excess over the other, many courts treat the clauses as mutually repugnant, cancel them out and prorate, but the result is state-specific. A certificate of insurance does not prove which policy pays first. Read the endorsements, not the certificate. primary and noncontributory explains the endorsement, and the guide on tendering a claim shows how a claim is routed to the other party's insurer.

Last reviewed October 10, 2026

In the index now

Related terms

Primary and noncontributory Wording that makes your liability policy respond first to a party you named as an additional insured, without drawing on that party's own insurance. Additional insured A person or business added by endorsement to someone else's liability policy so it can claim directly for suits tied to the policyholder's work or premises. Excess liability Liability coverage that pays only after the limits of underlying policies are used up, adding limit above them without necessarily broadening the terms. Umbrella policy A liability policy that adds limits above underlying general liability, auto and employers' liability policies and may cover some claims they do not. Subrogation An insurer's right, after paying a claim, to step into the policyholder's position and recover the loss from whoever caused it.

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Related en español

Cobertura de autos contratados y no propios (HNOA): qué cubre y quién la necesita La HNOA cubre a su negocio cuando alquila un auto o un empleado usa el suyo en el trabajo. Cómo paga, qué excluye y dónde comprarla. Empleados que manejan su propio auto por trabajo: ¿quién responde? Si un empleado choca su auto personal en un mandado de trabajo, él y el empleador pueden responder. Qué seguro paga primero, los huecos y qué política adoptar.