If you run a pool service business, your truck or van is basically your office on wheels. You're hauling chemicals, equipment, and tools to multiple job sites every day, often starting before sunrise and finishing after dark. Here's what catches most pool service owners off guard: that personal auto policy covering your everyday car? It won't protect you when you're driving for business. And if an employee causes an accident while heading to a client's pool, you could be on the hook for thousands—or even millions—in damages.
Commercial auto insurance is designed specifically for businesses like yours. It covers your owned vehicles, protects against liability claims, and fills coverage gaps that personal policies simply don't address. Let's break down exactly what you need to know.
Why Personal Auto Insurance Won't Cut It
Personal auto policies almost always exclude business use. That means if you get into an accident while driving to a client's home to service their pool, your personal insurer can deny your claim. The only exception? Your commute to and from a fixed workplace, which doesn't apply when you're running a route-based service business.
Even if your business doesn't technically own the vehicle—say you're using your personal truck—the moment you're conducting business activities, you're operating outside your personal policy's coverage. This creates a dangerous gap: no coverage for vehicle damage, and more importantly, no liability protection if you injure someone or damage their property.
Commercial auto insurance solves this problem by covering you, your employees, and your business-owned vehicles whenever they're used for work. Unlike personal policies that typically cover one person driving one car, commercial policies are built for businesses with multiple drivers, multiple vehicles, and varying levels of driver experience.
Understanding Hired and Non-Owned Auto Coverage
Here's where it gets tricky for pool service companies. What happens when your employee uses their own car to pick up supplies, or you rent a van for a big commercial pool maintenance job? That's where hired and non-owned auto insurance comes in.
Hired auto coverage protects your business when you or employees drive a rented, leased, or borrowed vehicle for work. Non-owned auto coverage applies when employees use their personal vehicles for business purposes—even if it's just driving to client sites. Here's the thing most business owners miss: if your employee gets into an accident while driving their personal car to service a pool, their personal insurance is primary, but if the damages exceed their policy limits, your business can be sued for the difference. Non-owned auto coverage protects you against exactly this scenario.
The good news? Most small business owners add hired and non-owned auto coverage to their general liability insurance or commercial auto policy as an endorsement, which helps save money versus buying separate standalone coverage. This liability-only coverage handles legal costs and damages if someone is injured or their property is damaged, though it won't cover damage to the hired or employee-owned vehicle itself.
How Much Coverage Do You Actually Need?
Liability limits matter more than most pool service owners realize. Commercial auto policies typically offer higher liability limits than personal policies—and you'll likely need them. Think about your typical day: you're navigating residential streets, backing into driveways, driving during rush hour traffic. The risk of a serious accident that causes substantial property damage or bodily injury is real.
Minimum required liability limits vary by state, but for context, New Jersey just increased its minimum bodily injury coverage to $35,000 per person and $70,000 per accident starting January 1, 2026. That might sound like a lot, but consider this: a serious accident with multiple injuries could easily exceed those limits. Many pool service contractors opt for limits of $500,000 or even $1 million to adequately protect their business assets.
Commercial auto insurance also includes property coverage for your own vehicles—protecting against collision, theft, vandalism, and weather damage. When your truck is loaded with expensive pool equipment, pumps, and chemicals, this coverage becomes essential. If you're financing or leasing your vehicles, lenders typically require comprehensive and collision coverage anyway.
What to Expect for Costs in 2025-2026
Let's talk about the elephant in the room: commercial auto insurance rates are rising. Industry experts predict increases of 5% to 15% in 2025, with commercial auto remaining a challenging market heading into 2026. Social inflation (rising jury awards and settlements) and increasing claim severity are driving these rate hikes.
Commercial auto premiums typically range around $150 per month per vehicle, though this varies widely based on your industry, driving records, vehicle types, and coverage levels. Pool service companies with multiple vehicles should expect higher total costs, but there's good news: insurers are increasingly willing to reward strong risk management.
Implementing telematics (GPS tracking that monitors driving behavior), installing dashcams, running formal driver training programs, and maintaining documented vehicle maintenance schedules can all help lower your premiums. Insurers view these risk management tools favorably because they reduce claim frequency and severity. If you operate a well-managed fleet with clean driving records and proactive safety measures, you're in a much better position to negotiate competitive rates despite the overall market conditions.
Getting the Right Coverage for Your Pool Service Business
When shopping for commercial auto insurance, look for insurers experienced with pool service businesses. They'll understand your unique risks: the early morning and late evening driving, the residential route work, the equipment hauling, and the chemical transportation. Some insurers offer package policies specifically for pool contractors that bundle commercial auto with general liability, workers' compensation, and equipment coverage—often at a discount compared to buying policies separately.
Be upfront about how you use your vehicles. If you're delivering pool supplies to customers or picking up product from manufacturers, mention it. If employees drive their personal vehicles for work, make sure you have non-owned coverage. The last thing you want is to discover a coverage gap after an accident when it's too late to fix it.
Review your policy annually and update it as your business grows. Added a new service vehicle? Hired more drivers? Expanded into new service areas? These changes affect your coverage needs and your premium. Working with an experienced commercial insurance agent who understands pool service operations can help ensure you're properly protected without overpaying for coverage you don't need.
