Written by: Lindsey Lessard, Vice President of NEXO Insurance, Broker Representative for Alternative Balance

If you’ve ever been asked to provide proof of insurance for a contract, event, or facility, you’ve likely come across terms like Additional Insured (AI), Waiver of Subrogation (WOS), and Primary & Non-Contributory (PNC). These requirements are very common, but they’re also frequently misunderstood.

At a high level, all of these terms relate to how your insurance policy interacts with other parties when you’re working together. Understanding what they actually mean can help you confidently navigate contracts and avoid surprises if a claim arises.

What do each of these terms mean?

Additional Insured (AI)

Adding a party as an Additional Insured extends certain protections under your liability policy to another individual or organization—typically a landlord, gym owner, event host, or company you’re contracting with.

However, this does not mean they receive full coverage under your policy. Coverage is limited to claims that arise out of your work, services, or operations. In other words, your policy may help protect them, but only in connection with what you are doing, not their independent activities.

For example, if you’re coaching a class at a facility and a participant brings a claim related to your instruction, the facility may be included under your policy as an Additional Insured. But if a claim arises from something unrelated to your services, your policy would not extend to that exposure.

Waiver of Subrogation (WOS)

A Waiver of Subrogation is an agreement that prevents your insurance carrier from pursuing another party to recover money after paying a claim.

Normally, if your insurance company pays out on a loss and believes another party was partially responsible, they may attempt to recover those costs from that party. A Waiver of Subrogation removes that right.

From a practical standpoint, this is often required in contracts to reduce the likelihood of disputes between parties after a claim. It helps keep things cleaner from a legal standpoint, but it also means your carrier is giving up a potential avenue for recovery.

Primary & Non-Contributory (PNC)

Primary & Non-Contributory refers to the order in which insurance policies respond when multiple policies could apply.

• “Primary” means your policy will respond first in the event of a covered claim
• “Non-contributory” means the other party’s insurance does not need to share in the loss

This is commonly requested by facilities or contracting entities because it ensures their own insurance is not impacted by claims arising from your work.

Why These Are Often Requested Together

In many cases, contracts will require all three provisions at the same time. Together, they are designed to:

• Extend limited protection to the other party (AI)
• Prevent your carrier from seeking reimbursement from them (WOS)
• Ensure your policy responds first (PNC)

These requirements are typically documented on a Certificate of Insurance (COI). It’s important to understand that a certificate reflects the terms of your existing policy and it does not change or expand coverage beyond what is already written in the policy.

Important Considerations

Before agreeing to these requirements, it’s worth taking a moment to understand what you’re committing to. While these provisions are standard in many industries, they do shift how your policy responds in certain situations.

It’s also important to ensure that:

• The request aligns with your actual services and operations
• The coverage is being extended appropriately and within the policy’s scope
• You’re not agreeing to contractual terms that go beyond what your insurance can support

Final Thoughts

Terms like Additional Insured, Waiver of Subrogation, and Primary & Non-Contributory may seem like legal jargon, but they play an important role in how risk is shared between parties.

Taking the time to understand them and asking questions when something isn’t clear can go a long way in protecting your business and ensuring your coverage responds as expected.

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