Primary and non-contributory is a clause often found in commercial insurance policies. 'Primary' means that this insurance will be the first to pay in the event of a claim, before any other insurance you have. 'Non-contributory' means the other party's insurance will not have to contribute to a claim covered by this policy. This arrangement is particularly significant in situations where you might be working under contract for another business and both have insurance coverage.

Let's say you operate a fence installation franchise. While working on a client's property, an accident occurs, causing damage. If your insurance is 'primary and non-contributory', it will cover the claim first, without seeking contribution from the property owner's insurance. This is especially important in contracts where you're required to indemnify your clients or take responsibility for certain risks.

Incorporating 'primary and non-contributory' clauses can:

• Clarify insurance responsibilities in your contractual agreements.
• Protect your business relationships by ensuring prompt claim settlements.
• Prevent complications arising from multiple insurance policies interacting.