Running a pool service business means juggling chemicals, equipment, client properties, and a whole lot of liability exposure. Between your truck full of expensive tools and the very real risk of someone slipping near a pool you just serviced, you need insurance coverage that actually protects you. That's where a Business Owners Policy (BOP) comes in—it's essentially a bundle deal that combines your most essential coverages into one package.
Here's what you need to know about whether a BOP makes sense for your pool service operation, what's typically included, and what gaps you'll still need to fill.
What Is a Business Owners Policy and Why Pool Service Companies Use It
A BOP is essentially a pre-packaged insurance product that combines general liability insurance with commercial property coverage. Instead of buying these policies separately and managing multiple renewals, you get both in one convenient package. For pool service businesses, this typically means protection for your equipment, tools, and inventory (the property side) plus coverage if you're sued for damaging someone's property or causing an injury (the liability side).
The main appeal? Cost savings. Insurance companies typically discount BOP packages by 10-15% compared to purchasing the same coverages individually. For a small pool service operation spending $2,000-$3,000 annually on insurance, that's $200-$450 back in your pocket each year. Plus, you're dealing with one policy, one renewal date, and one insurance company—which makes your administrative life significantly easier.
Most insurers design BOPs for small to mid-sized businesses with annual revenues under $3-5 million. If you're running a two-truck operation servicing residential pools and small commercial accounts, you're in the sweet spot for a BOP. Once you start scaling up with multiple crews, larger commercial contracts, or specialized services like pool construction, you might outgrow the BOP format and need customized commercial policies instead.
What's Actually Covered in a Pool Service BOP
The general liability portion of your BOP is the heavy lifter for most pool service claims. This covers you if a client's property is damaged during your work—say you accidentally crack a pool tile during cleaning or your chemical spill kills their landscaping. It also protects you if someone gets injured and blames your business, like a homeowner who slips on water you tracked into their house.
Most BOPs include $1 million per occurrence and $2 million aggregate for general liability, though you can often increase these limits. The policy typically covers legal defense costs, settlements, and judgments up to your policy limits. For pool service businesses, this is essential because many commercial clients won't hire you without proof of at least $1 million in liability coverage.
The property coverage component protects your business assets. This includes your pool cleaning equipment, chemical inventory, testing supplies, and tools—whether they're at your business location, in your truck, or at a job site. If your storage facility floods and ruins $10,000 worth of chemicals and equipment, your BOP property coverage handles the replacement costs. Most policies cover damage from fire, theft, vandalism, and certain weather events.
Many BOPs also include business interruption coverage, which is more valuable than people realize. If a fire damages your storage facility and you can't work for two weeks, this coverage reimburses your lost income and helps cover ongoing expenses like rent and payroll. For seasonal businesses or operations with tight margins, this can be the difference between recovering from a disaster and going under.
What's Not Covered (and Why That Matters)
Here's where pool service owners get tripped up: a BOP doesn't cover everything you need. The most glaring gap is commercial auto insurance. Your BOP won't cover damage to your service vehicles or liability claims from accidents while driving to job sites. Since you're on the road constantly, you absolutely need a separate commercial auto policy for your trucks and vans.
Workers' compensation is another major exclusion. If you have employees—even just one part-time helper—most states legally require workers' comp coverage. This protects your workers if they're injured on the job and protects you from being sued by an injured employee. Your BOP won't include this, so you'll need a separate workers' comp policy.
Professional liability (also called errors and omissions insurance) typically isn't included either. This covers claims that you gave bad advice or failed to perform your services properly—for example, if improper chemical balancing damages a pool's interior surface or filtration system. Some insurers offer this as an add-on to your BOP, while others require a separate policy. If you provide consulting services or handle complex commercial accounts, this coverage is worth considering.
Cyber liability is becoming increasingly important as pool service companies adopt scheduling software, store client credit card information, and manage customer databases. A standard BOP won't cover data breaches or cyberattacks. While this might seem like overkill for a small operation, one compromised customer database could expose you to significant liability and regulatory fines.
When a BOP Makes Sense for Your Pool Service Business
A BOP is ideal if you're running a straightforward pool service operation focused on maintenance and cleaning. If your business model is servicing residential pools and smaller commercial accounts, keeping equipment and chemicals at a single location, and operating with a handful of employees or subcontractors, a BOP probably fits perfectly. The bundled approach saves you money and simplifies your insurance management.
You might outgrow a BOP if your operations become more complex. Pool companies that expand into construction, major renovations, or operate multiple locations often need more customized commercial policies. Similarly, if your annual revenue exceeds $5 million or you start taking on large municipal contracts, insurers may require you to move beyond the standardized BOP format.
The other consideration is your client requirements. Many property management companies and commercial clients require specific insurance certificates with minimum coverage amounts. A BOP typically satisfies these requirements for general liability and provides the certificates you need. Just make sure your BOP limits match what your contracts require—if a client demands $2 million in general liability and your BOP only provides $1 million, you'll need to increase your coverage or add an umbrella policy.
How to Get Started with a BOP for Your Pool Service Company
Start by gathering information about your business operations. Insurers will want to know your annual revenue, number of employees, types of services you provide, and where your equipment is stored. They'll also ask about your claims history—previous insurance claims can affect your rates, though most insurers focus on the past three to five years.
Shop around. BOP pricing varies significantly between insurers, especially for pool service companies. Some insurers specialize in service-based businesses and offer better rates or broader coverage for your industry. Get quotes from at least three insurers and compare not just the price but the coverage limits, deductibles, and exclusions. The cheapest policy isn't always the best value if it has restrictive coverage or high deductibles.
Consider working with an independent insurance agent who specializes in commercial insurance for service businesses. They can help you identify coverage gaps, find competitive rates, and navigate the differences between insurers. A good agent will also help you bundle your BOP with the additional coverages you need—like commercial auto and workers' comp—potentially saving you even more through multi-policy discounts.
A Business Owners Policy gives most pool service companies the core coverage they need in one convenient, cost-effective package. It won't cover everything—you'll still need commercial auto and workers' comp at minimum—but it handles your biggest exposures while simplifying your insurance management. Take the time to understand what's included, identify what's missing, and shop around for the best combination of coverage and price. Your business depends on having the right protection in place.
