Running a pool service business means handling powerful chemicals, operating expensive equipment, and working around water all day long. That combination creates risks most business owners don't face. One chemical spill that damages a customer's deck, one slip-and-fall near a pool edge, or one equipment malfunction that cracks expensive pool plaster—and you're looking at claims that could shut down your business without proper insurance coverage.
This checklist walks you through the essential coverages every pool service business needs, optional policies worth considering, and the right times to expand your protection. Think of it as your insurance audit tool—use it when you're starting out, when you're adding employees, and every year when your policies renew.
Essential Coverage Checklist
These aren't optional—they're the foundation of your pool service insurance program. Every business in this industry needs these coverages from day one.
General Liability Insurance protects you when your business operations cause bodily injury or property damage. For pool service companies, this covers scenarios like a homeowner's child getting chemical burns from improperly stored chlorine, a customer slipping on wet tile near where you were working, or your pressure washer cracking a pool deck. Most clients require at least $1 million per occurrence and $2 million aggregate before you can service their pools. According to the Small Business Administration, general liability claims in the service industry average $45,000 to $75,000, making this coverage critical for survival.
Commercial Auto Insurance becomes mandatory the moment you use a vehicle for business purposes—and your personal auto policy specifically excludes business use. If you're transporting pool chemicals (which are considered hazardous materials), driving to customer sites, or carrying employees in company vehicles, you need commercial coverage. This protects you if your technician causes an accident while driving between pool appointments, if your truck gets stolen with thousands of dollars of equipment inside, or if chemical containers leak and damage your vehicle. The average commercial auto claim in 2025 runs about $22,000 according to the National Association of Insurance Commissioners.
Workers' Compensation Insurance is required by law in most states once you hire your first employee. Pool service work is physically demanding—technicians lift heavy equipment, work in extreme heat, handle caustic chemicals, and navigate slippery pool decks daily. Workers' comp covers medical expenses, rehabilitation costs, and lost wages if an employee gets hurt. It also protects you from lawsuits, since employees who accept workers' comp benefits typically can't sue you for their injuries. Rates vary by state but typically run $0.80 to $2.50 per $100 of payroll for pool service businesses in 2026.
Optional but Highly Recommended Coverage
These coverages aren't always required, but they fill critical gaps that basic policies leave exposed. Consider your business model and client base when deciding which ones you need.
Professional Liability Insurance (also called errors and omissions insurance) protects you from claims alleging your professional advice or services caused financial harm. If you miscalculate chemical dosages and damage a pool's plaster surface, fail to identify a leak that leads to structural damage, or provide faulty advice about equipment upgrades, professional liability covers your defense costs and settlements. This is especially important if you offer consulting services, pool inspections, or renovation advice beyond basic cleaning and maintenance. Policies typically start around $500 to $1,200 annually for small pool service operations.
Inland Marine Insurance is the coverage most pool service owners don't know they need until it's too late. It protects your business property while it's in transit or temporarily at customer locations—exactly where your equipment spends most of its time. Your $3,000 robotic pool cleaner, $1,500 water testing equipment, and $800 vacuum systems aren't covered by standard property insurance once they leave your shop. Inland marine fills this gap, covering theft from your truck, damage during transport, or loss while you're using equipment at a customer's property. For businesses with $15,000 to $30,000 in mobile equipment, this coverage typically costs $300 to $800 annually.
Commercial Umbrella Insurance provides extra liability protection above your general liability and commercial auto limits. If you service high-value properties or have significant assets to protect, umbrella coverage gives you an additional $1 million to $5 million in protection. It kicks in when claims exceed your underlying policy limits—like when a serious pool chemical accident leads to a $3 million lawsuit but your general liability only covers $2 million. Umbrella policies are remarkably affordable, often costing $400 to $1,000 annually for an additional $1 million in coverage.
When to Add or Increase Coverage
Your insurance needs change as your business grows. These trigger points tell you when it's time to revisit your coverage:
Hiring your first employee means you need workers' compensation immediately—it's not optional. Adding professional services like pool inspections, design consulting, or equipment installation requires professional liability coverage. Expanding into commercial pool maintenance (apartments, hotels, community pools) typically requires higher liability limits, often $2 million to $5 million per occurrence. Purchasing expensive equipment like automated pool cleaners or diagnostic tools means increasing your inland marine coverage limits. Taking on subcontractors requires verifying their insurance and possibly adding them to your policies.
Contract requirements from commercial clients often drive coverage changes. Many property management companies and HOAs require specific insurance certificates showing minimum coverage levels before they'll hire you. Don't wait until you've signed a contract to discover you need higher limits—build time for insurance adjustments into your sales process.
Annual Review Checklist
Every year when your policies renew, walk through this checklist with your insurance agent to make sure your coverage still matches your business reality:
Review your revenue growth—if you've increased sales by 20% or more, your liability limits may need adjustment. Count your employees and update payroll figures for accurate workers' comp premiums. Inventory your equipment and tools, updating inland marine coverage for new purchases or increased values. Evaluate your service mix—have you added new services that need additional coverage? Check your vehicle list and remove sold vehicles, add new ones, and adjust coverage for mileage changes.
Review any claims from the past year and discuss whether coverage adjustments would help prevent similar losses. Ask about new coverage options or discounts—insurers regularly introduce new products and bundling opportunities. Compare quotes from at least two other insurers every few years to ensure you're getting competitive rates, but don't chase the absolute lowest premium if it means sacrificing coverage quality or insurer stability.
Getting Started with the Right Coverage
Insurance isn't the exciting part of running a pool service business, but it's what keeps you in business when things go wrong. Start with the essentials—general liability, commercial auto, and workers' comp if you have employees. Then add coverage as your operations expand and your risk exposure grows.
Work with an independent insurance agent who specializes in commercial coverage for service businesses. They can access multiple insurers, compare coverage options, and help you understand the tradeoffs between premium costs and protection levels. Most importantly, they'll help you avoid the coverage gaps that don't show up until you're filing a claim. Use this checklist as your conversation starter, and build an insurance program that grows with your business.
