As a pools and spa contractor, your expertise in pool construction, hydraulics, and navigating complex regulations forms the backbone of your business. However, the unique risks you face—from hazardous materials to the physical demands of the job—bring to light the critical importance of insurance in safeguarding your livelihood.
Without proper coverage, these risks could threaten your operations and financial stability. By understanding the specific policies designed to address these challenges, you can ensure that your business is not only protected but also positioned for long-term success.
Keep reading to uncover the five pool contractor insurance policies you need to protect your business, employees, and clients, with expert tips from Thomas McMillan, Commercial Lines Staff Underwriter at Central Insurance.
5 Pool Contractor Insurance Policies You Need to Protect Your Livelihood
1 – General Liability is Like a Lifeguard for Your Business
With residential and commercial pool demand growing at a steady 4.03% year-over-year, the opportunities for contractors in this thriving industry are vast. However, unforeseen events could jeopardize your business or even bring operations to a halt. That’s why general liability insurance is crucial—it protects pool contractors from third-party claims involving bodily injury or property damage that may arise during your projects, ensuring your business remains secure and profitable.
McMillan explains that general liability is essential for managing the risks of exposure to on-site and completed operations. “For instance, if a homeowner or another contractor is injured on-site due to negligence, general liability insurance can cover medical expenses and legal fees. Similarly, if a completed pool project leads to property damage or personal injury—such as a poorly constructed diving board causing harm—this insurance helps cover associated costs.”
2 – Workers’ Compensation Protects Your Pool Contracting Team
Workers’ Compensation insurance is a necessity for pool contractors, given the physically demanding nature of the job. Employees work outdoors, often in extreme conditions, and handle hazardous chemicals, heavy equipment, and sharp tools. Risks specific to the pool and hot tub industry can include:
- Injury from slips, trips, or falls: Slippery surfaces near pools and icy conditions in colder months increase accident risks.
- Animal bites: Employees working in backyards may encounter dogs, snakes, or other wildlife.
- Strains and injuries: Lifting heavy materials like pool chemicals and equipment can result in back or joint strain.
- Drowning risks: Workers are often close to water, which poses a unique safety challenge.
Generally, state laws require employers to carry Workers’ Compensation insurance in the event of a major employee illness or injury. “By covering medical expenses, rehabilitation costs, and lost wages, workers’ compensation ensures both the safety and financial security of your team,” McMillan offers. “In addition, I recommend establishing safety protocols in your daily operations, as the least expensive accident is the one that never happens.”
Learn more: Insurance For Artisan Contractors: Top Policies to Protect Your Business
3 – Pool Contractor Insurance Must Include Auto Coverage
The U.S. is home to 10.7 million swimming pools, creating a fruitful market for pools and spa contractors. This flurry of business activity is also why you spend significant time traveling between jobsites, often early in the morning or late at night, which can increase your risk exposure, making commercial auto insurance another critical coverage. Most commercial auto policies provide property coverage (which protects against damage to your vehicle) and liability coverage (which protects against bodily injury to others and damage to their property).
“Keep in mind policies can be expanded per request to include additional protection for things like medical payments, uninsured motorists, personal injury protection, employees’ cars used in service of the employer, and more,” McMillan explains. “Additionally, you can enhance their protection with commercial excess limits, which extend coverage beyond standard auto liability limits, providing peace of mind for larger claims.”
Get insights like this right in your inbox. Subscribe to the Central Blog below.
4 – Property Insurance Safeguards Tools, Equipment, and Chemicals
Your business’s success relies on a variety of tools, machinery, and materials stored in offices or warehouses. Property insurance protects these assets against risks like theft, fire, water damage, and other weather-related events. It’s best to work with your experienced Central insurance agent to evaluate all your owned assets, including your building. This assessment will identify your property values and any associated risks.
A distinctive risk for pool contractors is the storage of hazardous chemicals, such as chlorine and cleaning agents, which are often flammable and require careful handling. “The fire load from these chemicals increases the property risk for pool contractors compared to other businesses,” McMillan says. Implementing safe chemical storage practices and ensuring the availability of emergency safety equipment, such as fire extinguishers and first-aid kits, are essential steps to mitigate this risk.
5 – Additional Pool Contractor Insurance Coverage for Mistakes
McMillan explains that Errors & Omissions (E&O) insurance is particularly valuable for artisan contractors like pool builders, who often face significant financial exposure from potential mistakes. E&O addresses risks related to professional mistakes or oversights that general liability insurance might not cover.
For instance, if a pool is improperly designed or installed, leading to structural issues or functionality problems, E&O insurance can cover the cost of repairs, corrections, or compensation for the client. It also protects against claims involving defective work or materials that damage to the pool or surrounding property. This coverage ensures you are safeguarded from the financial impact of design, construction, or maintenance errors, allowing your team to focus on delivering high-quality pools with confidence.
Partner with Central for Comprehensive Coverage
Central provides a comprehensive suite of insurance solutions specifically designed to meet the unique needs of pool contractors. With expertise in construction underwriting, loss control, and claims management, Central delivers the right policies for your business’s success. Partnering with a knowledgeable insurance provider like Central empowers pool contractors to confidently manage risks and focus on building a strong, respected brand that will attract and retain clients.
For more guidance on your pool contractor insurance quote, contact your local independent Central agent today.
