Recipient’s Insurance Primary Clause Samples

The 'Recipient’s Insurance Primary' clause establishes that the insurance coverage held by the recipient of goods, services, or property will be considered the primary insurance in the event of a claim. This means that if a loss occurs, the recipient’s insurance policy will respond first to cover the damages before any other insurance policies, such as those held by the provider or a third party, are accessed. This clause is commonly used in contracts where multiple parties may have overlapping insurance, ensuring that the recipient’s insurer bears the initial responsibility for claims. Its core function is to clarify the order in which insurance policies apply, thereby reducing disputes and allocating risk more predictably between the parties.