Insurance & LiensQuestion 1545 of 1605

A 'primary and noncontributory' insurance requirement in a subcontract means that when the sub names the GC as additional insured, the sub's policy should:

a.Not apply to the GC at all
b.Pay first, without seeking contribution from the GC's own policy, for claims arising from the sub's work
c.Pay only after the GC's policy is exhausted
d.Cover the sub's employees under workers' compensation

Explanation

A 'primary and noncontributory' provision requires the sub's policy to respond first and not seek contribution from the additional insured's (GC's) own coverage for claims arising from the sub's operations. This ensures risk truly shifts to the sub's insurer.

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Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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