Additional Insured vs. Waiver of Subrogation vs. Primary & Non‑Contributory

In Michigan’s construction world, the right insurance endorsements help contractors win jobs, manage risk, and avoid costly legal battles. But terms like “Additional Insured,” “Waiver of Subrogation,” and “Primary & Non‑Contributory” often cause confusion. Let’s break it down—straight, actionable, and MS2 Agency approved.

What Michigan Contractors Need to Know to Protect Their Business and Partnerships

1️⃣Additional Insured

What it means: You’re adding a third party—often your GC or project owner—as a “mini-insured” under your policy, specifically for risks arising from your work. It doesn’t make them a full policyholder, just grants limited protection.

Why it matters: This covers them when claims arise from your operations, shifting financial exposure and preserving their loss history. They don’t pay you more, but they avoid drawing from their own policy when accidents happen on their job.

2️⃣Waiver of Subrogation

What it means: After your insurer pays out a claim, it normally has the right to pursue recovery from another party at fault. With this waiver, that door is closed .

Why it matters: It prevents conflict between partners. Imagine a subcontractor spills chemicals that shut down a GC’s jobsite. Without the waiver, your insurer could sue your own GC client to recoup costs. With it, it stays smooth—no lawsuits, no fingerprints.

3️⃣ Primary & Non‑Contributory

What it means:

• Primary = Your policy is the first responder in a loss.

• Non‑Contributory = Your insurer cannot seek payment from any other policies before sending payment

Combined, it ensures your policy stands alone—no duck-passing on either defense or limits.

Why it matters:
GCs and owners want certainty: “If something goes wrong, we go to your carrier first, then ours—only if your limits aren’t enough.” It avoids finger-pointing and keeps partners’ policies clean and claims lean.

Putting the Pieces Together 🧩

In many Michigan contracts, you'll see this exact line:

"The Additional Insured must be named on a Primary, Non‑Contributory policy, and with a Waiver of Subrogation."

Here's how that plays out:

So your insurer:
✔ Covers the GC on your policy
✔ Pays first and only until your limits are depleted
✔ Cannot sue your GC afterward

That’s a bulletproof, clean insurance layer—no gaps, no cross-suing, no surprises.

Why You Should Care

• Win more bids: Many projects require these endorsements.

• Control premium impact: Bundling them upfront avoids expensive add-ons mid-job.

• Protect your relationships: Keeps GC/owner from filing under their policy and ruining relationship with your carrier.

• Avoid claim drama: Passes liability in the right order and avoids insurer-to-insurer disputes.

Final Word from MS2 Agency LLC

Contract language isn’t fluff—it’s your operating manual when things go sideways. Knowing what these endorsements do, and why they're often required, helps you negotiate smarter, price accurately, and protect your business and reputation.

✅ Next Steps:

• Ask your broker to confirm your policies include these three endorsements.

• Save a template COI request with the exact language above.

• Teach your team and subs what each one means—it reduces risk and makes contract compliance a breeze.

🚀 Get Your Customized Insurance Quote Today!📝
Fast ⚡ Easy ✅ Tailored to Your Business Needs 💼

💼 Business Loans & Credit Lines 💳
🚀 Fast, Flexible, & Easy ✅ Competitive Rates 💰

⭐ See Why We're 5-Star Rated on Google!
Trusted by Businesses Like Yours ✅

💼 Ready to Save on Business Insurance? 🚀 Get Your Instant Quote Now—Fast, Easy, and No Hassle! Protect Your Business, Control Your Costs! 🔍

💳 Seamless & Secure Card Processing with Deposyt! 🚀 Low Fees, Fast Transactions, Maximum Security! 🔒

🚗 Out of Factory Warranty? No Worries! 🛡️ Arkay Auto Warranty Covers Repairs, Saves You Money, & Keeps You on the Road Longer! 🔧💰 Get Protected!