Primary and non contributory means your insurance pays first and your insurer cannot ask your client's insurer to share the loss. It is added by endorsement, it usually sits alongside additional insured status on your general liability policy, and most professional liability carriers will not provide it. Who this is for: Accounting firms asked for it in a client contract.
The short version
- Primary means your policy pays first. Non contributory means your insurer cannot demand the client's insurer contribute.
- It is endorsement wording, not a box on a certificate.
- General liability and auto carriers add it routinely. Professional liability carriers usually will not.
- If a contract demands it on your Errors and Omissions (E&O) policy, the fix is normally a contract amendment, not a new policy.
- Signing before your broker reads the clause is how firms end up in breach of their own contracts.
What the two words actually mean
| Term | Plain English | What it stops |
|---|---|---|
| Primary | Your policy pays first, before the client's own insurance | Your insurer arguing that the client's policy should share from dollar one |
| Non contributory | Your insurer cannot demand the client's insurer chip in | A contribution fight that drags the client's policy into the claim |
| Together | Your policy stands alone for the covered claim | The client's limits, deductible, and loss history being touched at all |
Without primary and non contributory wording, two insurers can share a loss pro rata. That is fine for them and terrible for your client, because their deductible gets paid and their loss history takes the hit for something your work caused. That is why bank and lender engagement requirements insist on it.
Where it lives on your policy
Primary and non contributory is not a checkbox on a certificate. It is wording added by endorsement, usually alongside additional insured status:
- On general liability, the standard route is an industry endorsement from the Insurance Services Office (ISO), usually the form numbered CG 20 01, or blanket wording built into a carrier's own additional insured form.
- On auto, it is added by endorsement, often with the additional insured wording in the same form.
- On umbrella and excess, the follow form language has to mirror the underlying policy or the umbrella can drop back to excess.
- On professional liability, many carriers will not add it at all. Errors and Omissions forms often do not contemplate additional insureds, so brokers negotiate wording or push back on the requirement.
That last point is the one accounting firms run into most. A contract written for a construction trade gets handed to a accounting firm, and it asks for additional insured status with primary and non contributory wording on the professional liability policy. Most carriers will decline. The fix is usually a contract amendment applying that requirement to the general liability line only.
How Do I Get respond when a contract demands it?
- Send the insurance requirements page to your broker before you sign, not after.
- Confirm which policies the requirement is meant to apply to. General liability and auto are routine. Professional liability usually is not.
- Get the endorsement issued and ask for a copy of the actual form, not just a certificate note. A certificate is evidence, not coverage.
- Check the umbrella. A requirement of $2M to $5M per claim, sometimes with a $5M excess layer for audit and attest work often assumes your umbrella follows the same terms.
- Keep the endorsement with the signed contract. If a claim comes years later, that file is what proves you complied.
What it costs
On general liability, adding primary and non contributory wording is usually free or a nominal charge, particularly when your policy already carries blanket additional insured wording. On professional liability, the answer is more often that the carrier will not do it at any price, which is a negotiation issue rather than a pricing one.
Read more on the mechanics in the Morrow glossary entry for primary and noncontributory and the guide to additional insured status.
What this looks like in practice
Illustrative example. Numbers are typical of claims we see and are not a promise of how any specific claim would be handled.
The setup: A accounting firm that signed a master services agreement requiring additional insured status with primary and non contributory wording on every policy, including professional liability.
The claim: The matter started with a missed election on a partnership return. The client owed $210,000 in tax and penalties that a timely election would have avoided.
The cost: $38,000 in defense costs and $165,000 in settlement, $203,000 in total, paid inside the policy limit after the retention.
The lesson: The general liability endorsement was issued in a day. The professional liability carrier declined, and the client agreed to limit the requirement to general liability once the broker explained the market standard. Catching it before signature took one email.
Frequently asked questions
Q: What does primary and non contributory mean in a contract?
It means your policy has to pay first and cannot ask the other party's insurer to share. Your client wants their own policy, deductible, and loss history kept out of any claim arising from your work.
Q: Is primary and non contributory the same as additional insured?
No, though they usually travel together. Additional insured status extends your coverage to the other party. Primary and non contributory sets the order of payment. A contract typically asks for both.
Q: Can I add it to my professional liability policy?
Often not. Most professional liability forms do not contemplate additional insureds or primary wording. The practical fix is to have the contract apply that requirement to general liability and auto, where carriers routinely provide it.
Q: Does it cost extra?
On general liability it is usually free or a small charge, especially if your policy already carries blanket additional insured wording. Confirm with your broker rather than assuming it is already there.
Q: What happens if I sign and cannot deliver it?
You are in breach of the insurance provision. Clients can withhold payment, stop work, or in a claim argue that you owe them what the insurance would have paid. Getting the wording checked before signature avoids all of it.
Q: Does a certificate of insurance prove I have it?
Not on its own. A certificate is evidence, and the wording in the description box is not coverage. Ask for the endorsement form itself, and keep it with the contract.
How Morrow helps accounting firms
Morrow is a licensed independent commercial insurance brokerage that specializes in accounting & bookkeeping firms. Reading contract insurance clauses before you sign them is exactly the kind of question we answer every week, and because we place this coverage every day we know which carriers write it well, which forms are broad, and which contract language actually needs an endorsement behind it.
- We read the contract clause and tell you what your current policy already does and does not do.
- We market your account to carriers that have real appetite for accounting firms rather than whoever answers first.
- We issue certificates the same day a client asks, with the endorsements listed correctly.
- We stay on the file at renewal so limits, retroactive dates, and contract requirements do not quietly drift.
Get in touch and we will see how we can help. Tell us what you do, send over any contract that is driving the requirement, and send us the question and we will tell you where you stand. Start at morrowinsure.com or reach the team through the contact options on that page.
One more thing. This article is general information for accounting firms and is not legal advice, tax advice, or a statement of coverage. Policy wording controls in every case, and forms vary by carrier and by state. Have a licensed advisor review your own policy and your own contract before you rely on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated August 2026.