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EndorsementsStandard / Universal

Primary and Non-Contributory

What this clause says

Manufacturer's insurance shall be primary and non-contributory with respect to any insurance maintained by Sponsor.

What this means in plain English

Your insurance pays first and pays in full, even if the sponsor has their own insurance that could also respond.

What it means for a CDMO program

Mostly automatic if you have the right blanket AI endorsement. Verify wording. Some carriers use "P&NC where required by written contract" - this is fine. Some restrict to "primary only when no other insurance applies" - this is non-compliant.

How this evaluates

The Decoder applies these rules in order; the first match wins.

  • endorsements › primary non contributory is set → Compliant: P&NC endorsement in place.
  • endorsements › primary non contributory is not set → Gap: P&NC endorsement is required and likely missing.

See this in your MSA

Map this clause against your sponsor MSA.

Run the Decoder

Related clauses

Common questions about this clause

Questions about endorsements

Primary and Non-Contributory - common questions

What does primary and non-contributory mean?

Your policy pays first ("primary") and does not seek contribution from the sponsor's policies ("non-contributory"). Sponsors require it so their carrier is not dragged into claims that originated with you.

Is this expensive to add?

No - typically a no-cost or minimal-cost endorsement on a pharma-friendly CGL.

Can I negotiate against this?

Rarely - it is universal. Negotiate other clauses instead.