Contractor Insurance Coverage Limits

General liability limits

• Each occurrence — the most paid for one incident (often $1,000,000).
• General aggregate — the most paid in a policy year for most claims (often $2,000,000).
• Products-completed operations aggregate — the yearly maximum for claims after your work is finished.
• Personal and advertising injury — libel, slander and similar claims.
• Damage to premises rented to you and medical payments — smaller sub-limits.
• Per-project aggregate — an endorsement that gives each project its own aggregate, which many GCs require.

Other policies

• Commercial auto — usually a combined single limit, often $1,000,000 in contracts. California's private-passenger minimums (30/60/15 since January 1, 2025) are far below contract requirements.
• Employer's liability on workers' comp — often $1,000,000 each accident / disease.
• Umbrella — adds limits above all three.
• LLC licenses — CSLB requires liability insurance of $1 million up to $5 million, depending on personnel of record.

How the aggregate can run out

A GC with a $1M/$2M policy has two separate claims in one year, each settling for $1 million. The general aggregate is now used up, and any further claim that year may not be covered. A per-project aggregate endorsement or an umbrella keeps one bad year — or one bad project — from exhausting protection for everything else.

Limits and your certificate

A certificate of insurance shows your limits, but the GC will check them against the contract. If a contract calls for $2 million per occurrence and you carry $1 million, you'll need an umbrella before you start. Send us the insurance section of a contract before you sign and we'll tell you what has to change.

Choosing limits

Start with your contracts: most GC and owner agreements list required limits and endorsements. Then consider your largest job, how close you work to the public, and your vehicles. It usually costs less to raise limits with an umbrella than to buy higher primary limits.

Asena Capital Insurance Services compares multiple markets for California contractors and requests additional insured endorsements for you when a contract calls for them. Call (858) 925-9555 or request a quote — only your name, phone and email are required. CA License #6008596.

Frequently asked questions

What does $1M/$2M mean?

$1 million per occurrence and $2 million general aggregate per policy year.

What limits do GCs usually require?

Commonly $1M/$2M general liability, $1M auto and $1M employer's liability, sometimes with an umbrella.

Does a higher limit cost double?

No. Raising limits usually costs far less than proportionally more, and adding an umbrella is often the least expensive way to reach $2 million or more.

Does defense cost reduce my GL limit?

On most standard contractor GL policies defense is paid in addition to the limit, but some policies — especially with SIRs — include defense within limits. Check the wording.