You've got your truck, your equipment, and your first few clients lined up. You're ready to launch your pool service business. But here's what catches most new pool service owners off guard: insurance isn't something you figure out later. The moment you step onto a customer's property, you're exposed to risks that could wipe out everything you've built. A single slip-and-fall claim or property damage incident can cost tens of thousands of dollars.
This guide breaks down exactly what insurance you need at each stage of your pool service business—from solo operator to growing team—so you can protect your business without overpaying for coverage you don't need yet.
Day One Coverage: The Non-Negotiables
Before you service your first pool, you need two foundational policies: general liability insurance and commercial auto insurance. These aren't optional—they're the baseline protection every pool service business must have.
General liability insurance covers you if you damage a customer's property or if someone gets injured because of your work. Think about what you're doing: you're working around expensive pools, decks, and landscaping. You're handling chemicals. You're accessing backyards where kids and pets might be present. If your equipment scratches a $15,000 pool finish, or if a homeowner trips over your vacuum hose and breaks an arm, general liability steps in. Most policies start around $500-800 annually for a solo operator with $1 million in coverage.
Commercial auto insurance is required the moment you use a vehicle for business purposes. Your personal auto policy won't cover you if you're in an accident while driving to a client's house with equipment in your truck. Commercial auto covers vehicle damage, liability if you cause an accident, and often your equipment while it's in the vehicle. Expect to pay $1,200-2,500 annually depending on your driving record and vehicle type.
When to Add Professional Liability Coverage
Once you're offering advice or specialized services beyond basic cleaning—like chemical balancing, equipment repairs, or pool opening/closing—you need professional liability insurance, also called errors and omissions (E&O) coverage. This protects you when your professional judgment or service fails to prevent a problem.
Here's a real scenario: you balance a pool's chemistry, but miss a calculation. The high chlorine level damages the pool's plaster surface, costing $8,000 to repair. General liability won't cover this because you didn't physically damage the pool—your professional service did. Professional liability fills this gap. Most pool service businesses add this coverage within their first year, with policies ranging from $400-1,000 annually for $500,000 in coverage.
Growth Phase: Adding Employees and Equipment
The moment you hire your first employee—even if it's part-time—workers' compensation insurance becomes mandatory in almost every state. Workers' comp covers medical expenses and lost wages if an employee gets injured on the job. Pool service work involves chemical exposure, heavy equipment, and slip hazards around wet surfaces, making this coverage critical.
Workers' comp costs vary significantly by state, but pool service businesses typically pay $2-4 per $100 of payroll. For a single employee earning $35,000 annually, that's roughly $700-1,400 per year. Operating without workers' comp when it's required can result in massive fines and personal liability if an employee is injured.
As you accumulate more equipment—vacuum systems, water testing equipment, pumps, and chemicals—consider adding inland marine insurance. Despite the confusing name, this covers business property that moves from location to location. If your $3,000 worth of equipment is stolen from your truck overnight, inland marine insurance replaces it. This coverage typically costs $300-600 annually depending on your equipment value.
Smart Bundling: The Business Owner's Policy
Once you're buying multiple policies, ask your insurance agent about a Business Owner's Policy (BOP). A BOP bundles general liability, commercial property coverage, and business interruption insurance into one package at a discounted rate—typically 20-30% less than buying each policy separately.
The commercial property component covers your business property—like equipment stored at your home office or in a storage unit. Business interruption coverage is often overlooked but incredibly valuable. If your truck is totaled in an accident and you can't service clients for three weeks while you get a replacement, business interruption insurance replaces your lost income during that period.
Common Mistakes New Pool Service Businesses Make
The biggest mistake is assuming your personal insurance policies cover business activities. They don't. Using your personal auto insurance while driving to client sites, or thinking your homeowner's insurance covers business equipment stored in your garage—these assumptions can leave you completely unprotected.
Another common error is buying the minimum liability limits to save money. While a $300,000 general liability policy might be cheaper, one serious claim could exceed that limit, putting your personal assets at risk. Most insurance professionals recommend at least $1 million in general liability coverage. The cost difference between $300,000 and $1 million is usually only $100-200 per year—a small price for significantly better protection.
Finally, many new business owners delay getting insurance because they're operating part-time or just getting started. But here's the reality: you're not less likely to cause damage or face a lawsuit just because you're small. In fact, you're more vulnerable because you have fewer financial resources to absorb a major claim. Get insured before you service your first customer, not after something goes wrong.
How to Get Started with Pool Service Insurance
Start by contacting an independent insurance agent who works with multiple carriers and understands service-based businesses. They can compare quotes and coverage options across different insurers to find the best fit for your specific situation. Be prepared to provide details about your services, revenue projections, number of employees, and vehicle information.
For a solo pool service operator just starting out, expect to budget $2,000-3,500 annually for basic coverage including general liability and commercial auto. As you add employees and expand services, plan for insurance costs to scale to roughly 2-4% of your gross revenue. It's a significant expense, but one that protects everything you're building and is often required by commercial clients before they'll hire you.
Insurance might not be the most exciting part of launching your pool service business, but it's one of the most important. The right coverage lets you focus on growing your business instead of worrying about what happens if something goes wrong. Start with the essentials, add coverage as you grow, and review your policies annually to make sure you're protected at every stage.
