CG 20 01: Primary and Non-Contributory - Other Insurance Condition
Current Edition: 12 19 · Full ID: CG 20 01 12 19
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What Is CG 20 01?
This endorsement changes how the insurance company pays claims when someone is an additional insured on the policy. Normally, if the additional insured has their own insurance, the two policies share the cost. With CG 20 01, the named insured's policy pays first and does not ask the additional insured's policy to contribute. This only works if the additional insured is actually listed on the policy through a separate AI endorsement.
Technical Summary: Amends the 'Other Insurance' condition of the CGL policy to make it primary and non-contributory with respect to any other insurance available to an additional insured, but only when required by a written contract or written agreement. This form does not grant additional-insured status -- it solely modifies payment priority. Effective only when the entity is already an additional insured via CG 20 10, CG 20 26, CG 20 33, or similar endorsement.
What CG 20 01 Covers
- +Makes the named insured's CGL policy primary for additional insureds -- it responds first before the AI's own policy
- +Eliminates contribution from the additional insured's own insurance -- the named insured's policy does not seek pro-rata or excess sharing
- +Applies when required by a written contract or written agreement between the named insured and the additional insured
What CG 20 01 Does NOT Cover
- -Does NOT grant additional-insured status (requires a separate AI endorsement)
- -Does not apply unless the entity is already an additional insured
- -Does not override the policy's limits or change the total amount payable
- -Does not apply to the named insured's own claims -- only affects additional insured claims
- -Does not apply unless a written contract requires primary and non-contributory status
Key Provisions
- ●Only effective when a written contract or agreement requires primary-and-noncontributory status AND the entity is an additional insured
- ●Modifies the 'Other Insurance' condition only -- does not amend any other policy provisions
- ●The additional insured's own policy becomes true excess; it does not respond until the named insured's limits are exhausted
- ●Does not increase the named insured's policy limits -- the same limits apply regardless
Edition History
- • Minor formatting and cross-reference updates
- • No substantive coverage changes from 04/13
Common Mistakes & E&O Warnings
The most common E&O scenario with CG 20 01 is attaching it to a policy without verifying that the entity is actually an additional insured. The agency issues a certificate showing 'primary and non-contributory,' the certificate holder assumes full AI protection, but the AI endorsement was never added. When a claim occurs, the additional insured has no coverage at all -- let alone primary coverage. The agency is then exposed to an E&O claim for the misleading certificate.
- ⚠Believing CG 20 01 grants additional-insured status (it does not -- it only changes payment priority for existing AIs)
- ⚠Issuing CG 20 01 without verifying that a companion AI endorsement is also on the policy
- ⚠Assuming primary-and-noncontributory status increases the policy limits (it does not)
- ⚠Thinking CG 20 01 is always triggered -- it requires a written contract to activate
- ⚠Confusing primary-and-noncontributory with waiver of subrogation (they are different mechanisms with different endorsements)
Frequently Asked Questions
Does CG 20 01 make someone an additional insured?
No. CG 20 01 only changes how the insurance pays -- it makes the policy primary and stops it from seeking contribution. The entity must already be an additional insured through a separate endorsement like CG 20 10.
Why is CG 20 01 required in construction contracts?
Construction contracts typically require the subcontractor's policy to pay first so the general contractor's own policy is not triggered. Without CG 20 01, both policies might share the cost equally, which defeats the purpose of requiring AI coverage.
Is CG 20 01 the same as waiver of subrogation?
No. CG 20 01 addresses payment priority between insurance policies. Waiver of subrogation (CG 24 04) prevents the insurer from recovering from a third party after paying a claim. They are separate endorsements serving different purposes, though both are often required by the same contract.
What happens if CG 20 01 is on the policy but no AI endorsement exists?
CG 20 01 has no effect. The entity is not an additional insured, so there is no coverage to make primary. This is a common E&O trap -- the certificate may show 'primary and non-contributory' but the entity has no actual coverage.
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