If you're running a pool service business in Florida, you've probably noticed that every commercial client wants proof of insurance before they'll sign a contract. And for good reason—one accident involving pool chemicals or equipment could cost thousands in medical bills or property damage. But here's what surprises most new pool service owners: Florida treats pool contractors differently than regular service businesses, with stricter insurance requirements that kick in from day one.
Whether you're cleaning residential pools, maintaining commercial properties, or handling repairs, understanding Florida's insurance landscape is essential for staying compliant and protecting your business. Let's break down exactly what coverage you need, what it costs, and how to avoid the common pitfalls that trip up pool service contractors.
Florida Pool Service Licensing and Insurance Requirements
First things first: not all pool work requires a license in Florida. If you're just skimming leaves, brushing walls, and adding chlorine—basically maintenance that doesn't affect the pool's structural integrity or equipment—you don't need a state license. But if you're servicing equipment, making repairs, or doing anything beyond basic cleaning, you'll need a Service Pool Contractor license.
To get licensed as a Service Pool Contractor, you must pass both the Service Pool Trade Knowledge exam and the Business & Finance exam. You'll also need to prove you have at least one year of relevant experience (or a four-year construction-related degree plus one year of experience). Here's where insurance comes in: before Florida issues your license, you must attest that you have general liability and property damage insurance. Then, within 30 days of receiving your license, you need to either obtain workers' compensation insurance or file for an exemption.
Pool service contractors are classified as Division II specialty contractors in Florida. If your credit score falls below 660, you'll also need to post a $10,000 surety bond or letter of credit. The good news? You can cut that requirement in half by completing a 14-hour financial responsibility course, bringing it down to $5,000.
Workers' Compensation Insurance: The Rule That Surprises Most Pool Contractors
Here's where Florida's rules get strict: because pool service is considered construction work, you need workers' compensation insurance if you have even one employee. This is different from non-construction businesses in Florida, which only need coverage once they hit four employees. So if you hire a single helper to assist with routes, you're legally required to carry workers' comp.
Here's the other twist that catches people off guard: Florida law doesn't recognize independent contractors in the construction industry. That means if you hire someone to help with pool service work, they're automatically classified as an employee for workers' comp purposes. You can't just have them sign a 1099 form and call it a day—they must be covered under your policy.
If you're a corporate officer or LLC member who owns at least 10% of the business, you can file a Notice of Election to be Exempt from workers' comp coverage. Many solo operators do this to save money when they're just getting started. But remember—once you hire that first employee, you need coverage immediately.
If you use subcontractors for any pool service work, you're required to verify they have their own workers' compensation insurance before they start work on any project. Keep copies of their certificates of insurance on file—if the state audits your business and finds you used an uninsured sub, you could be on the hook for their premiums plus penalties.
General Liability Insurance: State Minimums vs. Real-World Needs
Florida requires pool service contractors to carry a minimum of $100,000 in general liability coverage for bodily injury and $25,000 for property damage. Technically, that's all you need to satisfy the state licensing board. But here's the reality: those minimums won't get you very far in the real world.
Most commercial property managers and homeowners' associations require pool service contractors to carry at least $1 million in general liability coverage, often with a $2 million aggregate limit. Some larger contracts demand even higher limits. The good news is that upgrading from minimum coverage to a $1 million/$2 million policy isn't as expensive as you might think. For small pool service companies, this level of coverage typically costs between $29 and $47 per month—that's $350 to $565 per year.
What does general liability insurance actually cover? It protects you if someone gets injured because of your work (a client slips on water you spilled near the pool deck) or if you damage property (your equipment scratches expensive pool tile or you accidentally crack a pipe during a repair). It also covers legal defense costs if someone sues you, which alone can run into tens of thousands of dollars even if you win the case.
Keep in mind that general liability insurance is required not just for licensing, but must be maintained at all times while your license is active. If your policy lapses, the state can suspend your license until you provide proof of coverage.
Additional Coverage to Consider for Your Pool Service Business
While workers' comp and general liability are the legal requirements, most pool service contractors benefit from additional coverage types that protect against common risks in this industry.
Commercial auto insurance is essential if you're driving to service appointments. Your personal auto policy won't cover accidents that happen while you're using your vehicle for business purposes, and if you're carrying pool chemicals or equipment, you definitely want this protection. Most insurers offer hired and non-owned auto coverage as well, which protects you if an employee uses their personal vehicle for work-related tasks.
Inland marine insurance (also called tools and equipment coverage) protects your pool cleaning equipment, testing kits, pumps, and tools. If your truck gets broken into and someone steals $5,000 worth of equipment, this coverage reimburses you so you can get back to work quickly. Business personal property insurance similarly covers equipment and supplies you keep at your office or storage facility.
Umbrella liability insurance provides an extra layer of protection above your general liability and auto liability limits. For an additional $200 to $400 per year, you can add $1 million in umbrella coverage that kicks in after your primary policies are exhausted. This is especially valuable if you service high-value properties where a single mistake could result in damages exceeding your standard policy limits.
How to Get Started and Stay Compliant
The best time to line up your insurance is before you apply for your pool service contractor license. Contact an insurance agent who specializes in contractor coverage or pool service businesses—they'll understand Florida's specific requirements and can often bundle policies to save you money.
When you're getting quotes, be upfront about the type of work you do. Tell them whether you're doing basic maintenance, equipment servicing, or repairs. Mention if you work on commercial properties or just residential pools. The more accurate information you provide, the better your policy will match your actual needs and the less likely you'll face coverage gaps.
Once you have coverage, set calendar reminders for renewal dates. A lapsed insurance policy doesn't just put you at risk—it can trigger license suspension and make it harder to get coverage in the future. Keep digital and physical copies of your certificates of insurance handy, because you'll need to provide them frequently to clients, property managers, and sometimes even building departments.
If you're having trouble finding affordable coverage through standard insurance carriers, ask your agent about the Florida Workers' Compensation Joint Underwriting Association for workers' comp, or surplus lines carriers for general liability. These options typically cost more but are available when standard insurers won't write a policy.
Running a pool service business in Florida comes with specific insurance responsibilities, but they're manageable once you understand the requirements. Start with workers' compensation if you have employees, carry adequate general liability coverage that meets both state minimums and client expectations, and consider the additional policies that protect against your biggest risks. With the right coverage in place, you can focus on growing your business instead of worrying about what could go wrong.
