Primary and Non-Contributory (PNC)

Primary and Non-Contributory (PNC) is contract and endorsement language that determines the order of payment when two insurance policies cover the same loss. 'Primary' means the policy pays first. 'Non-Contributory' means the insurer cannot demand that another covering policy contribute to the loss. Together, the language ensures that if a claim is caused by a subcontractor, the sub's insurance handles it fully without involving the GC's own insurance. Without PNC, a claim the sub caused can still hit the GC's loss runs and affect future premiums. PNC is typically provided through CG 20 01 or built into the Additional Insured endorsement.