The Truth About AI, PNC, and WOS
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The Truth About Additional Insureds, Primary & Noncontributory, and Waivers of Subrogation
A few times a week, we get the following questions:
“What’s a Primary and Noncontributory endorsement?”
“Do I really need a Waiver of Subrogation just to book this load?”
“Does it cost anything to add an additional insured?”
Let’s get into it.
What Is an Additional Insured?
This is where it all starts. Additional Insured (AI)
endorsements are the most requested and most misunderstood insurance add-ons in
trucking.
When a broker, shipper, or contracting company asks to be
listed as an Additional Insured, they’re asking to be covered under your
liability policy if something tied to your work causes a claim.
That means:
- They
get their own legal defense from your insurer
- They
don’t have to touch their own insurance
- They’re
protected without paying the premium
While being added as an AI doesn’t automatically trigger
other endorsements, it’s common for contracts to also request Primary &
Noncontributory and a Waiver of Subrogation on top of that status.
Each of these endorsements is separate, requires its own
approval, and impacts your liability differently. They don’t always go
together, but when they do, your exposure can increase fast. Especially if
you’re not reviewing the contract language closely.
There are dozens of AI forms out there. ISO versions.
Carrier-specific versions. Broad and restrictive. If you’re not reading what’s
actually being endorsed, you could be agreeing to coverage that wasn’t priced
or approved.
And here’s a detail many carriers and AIs miss: Notice of
cancellation requirements vary depending on how the AI is added.
- When a
party is listed as a named Additional Insured (scheduled endorsement),
the insurer is able to provide direct notice of cancellation.
- With blanket
AI coverage, there’s no direct notification. If your policy gets
canceled, the additional insured won’t know unless you tell them.
That creates a serious exposure issue for the Additional
Insured. They may believe they’re protected, but unless they're specifically
named and notified, their coverage could disappear without warning.
Blanket vs Scheduled AI
- Scheduled
Additional Insureds are added by name, one by one. You’ll see them
listed on the certificate. Since they’re explicitly listed, they receive
direct notice of cancellation from the insurer. That gives them a layer of
protection if your policy lapses.
- Blanket
Additional Insured endorsements apply automatically, but only when
there’s a valid written contract requiring it. These do not include
direct notice of cancellation. The insurer only notifies the Named
Insured, not the AI. That leaves the blanket AI exposed if the policy is
canceled.
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- Blanket
AI can save time when working with many short-term clients.
- Scheduled
AI is usually required for contracts requiring direct communication if
coverage changes.
For Brokers, Shippers, and Receivers:
- Scheduled
AI status offers the most security.
- Blanket
AI leaves you exposed unless you actively monitor the carrier’s coverage.
What Is a Primary & Noncontributory Endorsement?
This clause changes the order of payment.
- Primary
= Your policy responds first in the event of a claim
- Noncontributory
= Your policy won’t seek contribution from any other policy unless yours
is exhausted
It doesn’t matter if the shipper or contracting company also
played a role in the loss. If they’re listed with PNC, your coverage takes the
full hit first.
They stay clean. You take the bullet.
This protects them from having to file a claim on their own
policy. Even if their side of the operation helped cause the loss.
Why This Clause Exists
When multiple policies could potentially respond to a claim say
yours and the shipper’s. It creates a mess of finger-pointing and legal
arguments over who owes what.
Primary & Noncontributory language shuts that down.
It clearly says:
"The carrier’s policy goes first. And they can’t split
the cost with us."
Only after your policy limits are fully used up will
any other insurance even come into play.
So, if you’re carrying a $1 million Auto Liability policy
and a claim hits for $1.2 million?
Your policy pays the first million. Someone else might kick in the last
$200K. But until your limit is drained, nobody else pays a dime.
What Is a Waiver of Subrogation?
This one comes after a claim is paid.
Normally, if your insurer pays for a loss and someone else
contributed to it, they can go after that party to get some money back. That’s
called subrogation.
A Waiver of Subrogation (WOS) blocks that.
If a broker, shipper, or contractor requests a WOS, your
insurer agrees not to go after them for reimbursement…even if they helped cause
the loss.
It's like saying “We'll pay, and we promise not to blame
you. Ever.”
These Endorsements Are Not Free
Additional Insured, Primary & Noncontributory,
and Waiver of Subrogation are not bundled. Each one is handled
separately, and each one can cost you.
Here’s how it really works:
- Additional
Insureds are added one at a time, unless you have blanket AI, which
only applies with valid contracts
- P&NC
and WOS are handled individually per request, and may only be
available if contractually required
- Underwriting
often has to review the full contract before these endorsements can be
approved
- The Description
of Operations section on the COI has to be worded very carefully to
match the terms
If you’ve got multiple shippers, brokers, or contracting
companies all asking for these endorsements on multiple policies (Auto, GL,
Cargo, Umbrella)? That’s a heavy admin load, increased risk, and real added
cost.
You’re not just giving them protection. You’re paying to do
it and it adds up fast.
How These Endorsements Stack
Here’s how these commonly requested endorsements typically
build on each other:
- Additional
Insured
Grants limited liability protection to a third party related to your work. - Primary
& Noncontributory
Makes your policy the first and only to respond until limits are exhausted. - Waiver
of Subrogation
Prevents your insurer from going after the other party, even if they helped cause the loss.
Each step adds more exposure and takes more control away
from you. They may be requested together, but they’re not a package deal. They
require individual review, approval, and clear contract backing.
Don’t Let a COI Get You Sued
Some agents will fill out a certificate and send it off. No review, no underwriting check, just
whatever the broker asked for to get the load booked faster.
That shortcut can cost you.
We’ve seen COIs that list endorsements not included in the policy
or use copy-pasted language the insurer never approved. If your certificate
says it’s covered, and it’s not? You’re on the hook.
That Description of Operations box everyone ignores?
It matters. If it doesn’t match your actual policy or your underwriter didn’t
sign off, you might be breaching your own coverage...without even knowing it.
A Certificate of Insurance isn’t coverage. It’s just
a snapshot of your policy. If your COI shows endorsements that don’t exist on
your actual policy, you’re on the hook when the claim hits.
Let’s Flip the Script
This is something we think about all the time. What if you called up the broker or shipper and
said:
“Sure, I’ll take the load, but first send me your
COI.
List me as Additional Insured, include Primary & Noncontributory,
and throw in a Waiver of Subrogation while you’re at it.”
You already know the answer: they’d laugh and hang
up.
Because everyone wants to shift risk down the chain to the
motor carrier. You’re the one holding the equipment, the DOT number, the
liability and guess what?? Now you’re
holding the bill too.
That’s the game. And if you don’t know how these
endorsements work, you’re getting played.
Final Word
We’re not saying don’t sign the contract.
We know how it works. You’ve got trucks to keep moving,
dispatchers trying to fill gaps, and brokers who expect that COI back in 20
minutes or they’ll give the load to someone else.
Sometimes you do what you have to do to keep freight under
your wheels.
But that doesn’t mean you should hand out risk you don’t
understand. And it definitely doesn’t mean you should sign contracts without
reading the fine print, all of it. Not just the insurance section.
Every time you list someone as Additional Insured, give them
Primary & Noncontributory status, or waive subrogation, you’re giving up
leverage. You’re promising to cover more, accept more liability, and limit your
insurer’s ability to recover losses.
Sometimes that makes sense. Sometimes it’s the cost of doing
business with the big dogs.
Our job is to help you understand.
So, before you check another box or sign off on another
“standard” contract, make sure you actually know what you’re signing away. That
means reading the full contract. Not just the parts your broker highlights for initials and signatures. If a claim hits and your policy isn’t built to back up what your COI
says, you’re the one left holding the bag.
We’ll help you weigh it all:
- What’s required
- What’s negotiable
- What’s going to hurt your renewal
- What exposes you to risk your policy may not cover
You’ve got every right to protect your business and still
keep freight moving. We’ll help you do both.
If you're adding them just to keep a load or appease a
broker, you're gambling with coverage that wasn't designed for someone else’s
benefit.
Read the contract. Review the endorsements. Get approval.
And know what you're agreeing to.
Because the only thing worse than losing the load is getting
hit with a claim your policy won't pay because the endorsements didn’t match
the contract.
Not sure what your contract’s really asking for?
Shoot us an email at info@trucku.biz. We’ll walk through it line by line and show you what those endorsements actually mean for your coverage before you agree to something your policy can’t back up.
Disclosure:
This post is for educational purposes only. It’s not legal advice, insurance advice, or a substitute for calling your agent. We’re good, but we’re not psychic. Policies vary, laws change, and courtrooms get weird. Don’t make decisions based solely on something you read on the internet, unless it’s from us, in writing, with your name on it.
All opinions are our own and do not represent the views of any carrier, employer, or underwriting department that occasionally wishes we were quieter on LinkedIn.
