What general liability limits do general contractors usually require from plumbing subcontractors?

Subcontract agreements commonly ask a plumbing subcontractor for $1,000,000 per occurrence and $2,000,000 general aggregate, with the products-completed operations aggregate also at $2,000,000. Larger commercial, public-works and multi-family projects often ask for more — $2,000,000 per occurrence, or a $5,000,000 or higher total that you reach by stacking an umbrella or excess policy over the general liability.

These numbers are a contract matter, not California law. No California statute sets the limits a general contractor may demand from a subcontractor. The only limit the state imposes on a plumbing contractor is the CSLB requirement for LLC licensees (at least $1,000,000, rising with personnel of record), and even that is a licensing minimum, not a cap on what a customer can ask for.

The limits are usually only part of the insurance exhibit. The same section typically asks you to name the general contractor and owner as additional insureds for ongoing and completed operations, to make your coverage primary and non-contributory, to waive subrogation, and sometimes to carry the coverage for a stated number of years after completion. Each of those is a separate endorsement that your carrier may or may not offer on your policy.

Before you sign, send the insurance exhibit to your broker. If the contract asks for something your policy cannot provide, it is far better to negotiate the exhibit than to discover the gap when the certificate is rejected — or after a loss.