This endorsement may be required by facilities, and others, to guarantee that your policy pays first on a claim before theirs do (primary) and that their policy will not contribute towards the payment of a claim at all (noncontributory).
This significantly increases your risk of a larger claim and insurance companies charge extra premium for the increased risk.
While such an endorsement clearly benefits the third party, it is of no benefit to you and only serves to increase the payout of a claim by you – negatively impacting your claims history.
While this endorsement seems similar to, or overlap, coverage provided by Waiver of Subrogation endorsements, primary and noncontributory protect the additional insured’s insurance policy from contributing toward the payment of a claim during the claims process; while the waiver of subrogation is intended to provide protection from them having to reimburse all or some of the payout after the claim is closed and your insurance company looks to sue other responsible parties for reimbursement.
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