Request for LSA Policy Clarification

Question

Dear Local Services Ads Support / Community Team,
As a digital marketing agency that manages Google Local Services Ads (LSAs) for a number of reputable bathroom remodeling businesses across the U.S., we would like to formally raise an ongoing concern regarding licensing requirements for bath remodelers who subcontract plumbing work.
Many of our clients operate as general contractors or bath remodeling specialists. While they do not offer standalone plumbing services, they often subcontract licensed and insured plumbers for plumbing-related aspects of their remodeling work — such as moving drains or installing fixtures.
However, LSA verification frequently requires a State Plumbing Contractor License, which our clients do not hold directly, as they:
Do not advertise themselves as plumbing service providers
Do not complete plumbing work in-house
Use licensed subcontractors in full compliance with state and local regulations
This requirement has created significant barriers for clients in states like Illinois, where there is:
No state-level general contractor license, and
Strict plumbing licensure regulations that are irrelevant to general remodeling companies using subcontracted plumbers

➡️ Example: The Illinois Department of Financial and Professional Regulation (IDFPR) does not issue general contractor licenses at the state level
Source: https://idfpr.illinois.gov/profs/proflist.html
This results in:
Delayed or rejected verification attempts
Loss of visibility for legitimate bath remodeling businesses
Frustration for contractors and marketers alike, who are otherwise compliant with local and state requirements
Suggested Solutions:
 
Permit bath remodelers to proceed with verification if they can demonstrate use of licensed plumbing subcontractors.
Allow businesses to opt out of “Plumbing” as a selected vertical or service area, while keeping categories like “Bathroom Remodel”.
Provide a clear and consistent policy on how LSA handles subcontracted work within remodeling categories.
We understand and fully support LSA’s commitment to consumer safety and trust. However, the current licensing framework unintentionally excludes businesses who are operating responsibly and ethically within the home improvement space.
We respectfully request that LSA re-evaluate how licensing is handled for bath remodelers and contractors using subcontractors, and we welcome the opportunity to provide further feedback or participate in any policy review.
Thank you for your time and consideration.