Usually not. Primary and noncontributory wording (your policy pays first on a claim tied to your work, and your customer's policy does not chip in) is added at no separate charge by most insurance companies. A few charge a small flat fee (illustratively $0 to $100), or fold it into the charge for the one page change that lets your customer use your policy in the first place (the endorsement). Who this is for: owners pricing a bid, or wondering whether to push back on a general contractor's request.
The short version
- Usually free. The wording changes who pays first, not how much your policy covers, so most insurance companies do not price it.
- Any charge you see is usually for the page it rides on, the one that lets your customer use your policy. That one is often free with blanket wording and otherwise roughly $50 to $300 (illustrative).
- The real cost is not the paperwork. It is that your policy pays first, so a claim tied to your work lands on your record and your limit.
- Skipping it can cost more. If you promised it in a contract and do not have it, you have broken the contract.
- All prices here are illustrative. Your trade, state, and insurance company set the real number.
Why is it usually free?
Think about what the endorsement does. It does not add anyone new to your policy. It does not raise your limit or cover a new kind of claim. It just says that when your customer uses your policy as an additional insured (they can use your policy if they get sued because of your work), your policy goes first.
Your insurance company already agreed to cover the customer when it issued the additional insured endorsement. Paying first instead of splitting the bill is a small change, so most do not price it. Many build the wording into their blanket additional insured form, which is why some owners already have it without knowing.
What could I actually be charged for?
These figures are illustrative, for a small contractor with a clean claims history. Your trade, state, and insurance company set the real number.
| Endorsement | Typical charge (illustrative) | Notes |
|---|---|---|
| Primary and noncontributory wording | $0 with most insurance companies. A few charge $25 to $100 flat. | Stand alone form CG 20 01, or built into the additional insured form |
| Additional insured, ongoing work | Often $0 with blanket wording. Otherwise $50 to $300 per customer. | The primary wording rides on this. You need it first. |
| Additional insured, after the job is finished | $0 to a few hundred dollars a year, depending on trade | Most GC contracts want this too, and it is the one most often missing. |
| Same wording on commercial auto | Usually $0 | Only when the contract asks for it on auto |
| Your umbrella (a second layer of coverage above your other liability policies) following the wording | Usually $0 | Confirm it, especially if the umbrella is with a different insurance company |
Is there a hidden cost?
Yes. Primary means your policy pays first. So a claim tied to your work that involves your customer lands fully on your policy, up to your limit, before anyone else's policy is touched.
- Your limit is used up faster. Your customer shares your limit as an additional insured. If the claim is big, there is less left for you.
- The claim goes on your record. Your insurance company paid it, so it shows in your claims history at renewal, which can raise your price.
None of this is a reason to refuse. It is standard in construction, and a GC will not hire a sub who refuses it. It is a reason to carry a limit that fits the work. See what primary and noncontributory means.
What does it cost me if I do not have it?
More than the endorsement, in almost every case.
| Situation | What it costs (illustrative) |
|---|---|
| Certificate rejected before the start date | One to four idle days for the crew, often $2,000 to $8,000 in labor |
| You signed a contract promising the wording and a claim happens | The GC's insurance company shares the loss, the GC pays its deductible (the part of a claim it pays out of its own pocket), and the GC back charges you (bills you for it under the contract) for breaking your promise. GC deductibles often run into the thousands of dollars, and the subcontract usually lets the GC pass that cost to you. |
| GC drops you from the bid list | Future work you never see |
How do I find out my real price?
Ask your broker two questions. Does my additional insured endorsement already include primary and noncontributory wording? If not, what does the insurance company charge to add it? The first answer is often yes, and the second is often zero. If you sign more than a few contracts a year, ask about blanket versus scheduled additional insured wording too. Steps are in how to add the wording.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A landscaping contractor in Arizona signs a $72,000 subcontract for site work on a retail pad. The GC wants additional insured with primary and noncontributory wording. Her insurance company charges a $75 flat fee for the primary endorsement (illustrative).
What went wrong: She almost skips it to save the $75. Her broker runs the other side of the math. Without the wording, a claim tied to her work would be shared with the GC's policy, the GC would spend its $10,000 deductible (the part it pays out of pocket), and the subcontract lets the GC bill that back to her.
What it cost: She pays the $75. Two months later a tree well she left open causes a fall, and the claim settles for $38,000 inside her limit. Her policy pays first, the GC's policy is never touched, and there is no back charge.
The fix: The endorsement is usually free and rarely more than a small fee. The cost of not having it is a deductible sized back charge and a lost customer.
Frequently asked questions
Q: Does primary and noncontributory coverage cost extra?
Usually not. Most insurance companies add the wording at no separate charge when your customer is already an additional insured. A few charge a small flat fee (illustratively $0 to $100).
Q: Why would my broker quote me a charge for it, then?
Often the charge is really for the additional insured endorsement, or the version that keeps covering your customer after the job is finished, and the primary wording is bundled in. Ask your broker to break the invoice down.
Q: Does it raise my premium at renewal?
The endorsement itself does not. But because your policy pays first, a claim tied to your work lands fully on your record, and claims are what move your renewal price.
Q: Is it cheaper to buy it with blanket wording?
The standard endorsement already applies to every additional insured, so one page covers every customer. Blanket wording matters more for the additional insured endorsement underneath.
Q: What happens if I skip it to save money?
If your contract requires it, you have broken the contract. A rejected certificate can idle your crew for days, and if a claim happens, the GC can bill you back for its deductible. Both cost far more than the endorsement.
Q: Does the wording mean I pay for the GC's mistakes?
No. Your customer is covered under your policy only for claims tied to your work, as the additional insured endorsement spells out. The primary wording changes who pays first, not what is covered.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Telling an owner exactly what a contract's endorsements will cost, before they sign, is a core part of our free contract review.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.