Pool Service Insurance

Every pool service needs insurance. Knowing which type of insurance you need and the best place to get it is the next step.

This article will cover the main types of business insurance and help you find the best pool service insurance.

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Pool Service

The most common and comprehensive type of pool service insurance is general liability insurance. We recommend general liability insurance as your first line of defense against a variety of the most general and commonly occurring claims.

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While a pool service isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your pool service is sued, you could face fees totaling hundreds of thousands of dollars (or more).

Find the Right Policy at the Best Rate

Using a fully online insurance provider saves time and money and offers the most accurate quotes.

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Cost of General Liability Insurance

The average pool service company in America spends between $500-$1,500 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a pool service to other professional industries using the graph below:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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Finding the most affordable premium starts with getting accurate quotes from highly rated providers.

Common Situations That General Liability Insurance May Cover for a Pool Service

Example 1: An employee is smoking during work and accidentally lights a client’s pool shed on fire, destroying a large amount of pool equipment and machinery. If found liable, your business could probably rely on general liability insurance to help cover damages owed as mandated by the court or any settlement reached with the client.

Example 2: A new employee is alone on a maintenance job and encounters a pool pump that he doesn't fully understand. He fiddles with it and causes a leak, which later results in the client slipping and falling. If the client were seriously injured, general liability insurance could probably help your business cover the resulting damages, assuming you were found liable.

Example 3: Your employees accidentally cause a pool to overflow, leading to a sizeable flood that leaks into the neighbor’s yard and ruins his extensive garden and backyard with oversaturation and chlorine content. If found liable, your company could probably expect coverage through a general liability insurance policy for damages owed to the neighbor.

Check out our review of the Best Small Business Insurance Companies.

Other Types of Coverage Pool Servicees Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all pool service companies should obtain:

Commercial Auto Insurance

This is a business that will without a doubt require vehicles to transport its equipment and personnel to client locations. All vehicles intended for use on public roads must be insured, either personally or commercially. Get your vehicles covered with commercial auto insurance to help cover damages sustained in the event of a car accident. Depending on the success of your business, your vehicles may see quite a bit of use, making this a policy you simply should not leave home without.

Professional Liability Insurance

This policy helps to cover businesses that provide professional services with potentially significant consequences. It also covers businesses that give advice or otherwise inform clients in a professional capacity. If your pool service company fails to perform to the client’s standards or provides pool maintenance advice that is ultimately damaging to the pool in a serious way, this policy can cover your losses and minimize the damage of lawsuits.

Workers' Compensation Insurance

Unless you prefer to service client pools solo, your company will employ workers, which will legally require you to have workers’ compensation insurance. So unless you’re working exclusively with independent contractors, this policy is a must-have. Compensation policies cover your employees in the event that they are injured on the job. Medical expenses, as well as disability and death benefits, are provided through this insurance.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your pool service:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Business Insurance Is the Best Way to Protect Your Business

If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.

Be sure that everything you've built is safe by getting business insurance.

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Pool Service Insurance FAQ

Can I buy business insurance online for my pool service?

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

What is included in a business owner’s policy?

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

What is the difference between business insurance and general liability insurance?

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Do I need insurance before I start a pool service?

You should invest in business insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.

Will insurance protect my pool service from everything?

Not necessarily. Certain exceptions may be written directly into your pool service insurance policy, and some perils may be entirely uninsurable.

Is general liability the same as business owners?

A general liability insurance policy covers only liability losses. A business owner's policy covers both liability and property losses.

How do I choose the best general liability insurance?

The best general liability coverage for your business really depends on the amount of coverage you’re comfortable with and how often you expect to file a claim. A relatively safe business with a very low risk of accident or legal liability could opt for lower premiums with higher deductibles. 

However, if you are in an accident or injury-prone industry or are making advertising claims about the effectiveness of your service or product, you may wish to consider more extensive coverage. We recommend using a digital insurance provider like Next Insurance.

Do I need business insurance if I already have an LLC?

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.

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