Why do swimming pool contractors need insurance?
If a client sues over project delays or cracks in a pool, the resulting expenses could sink your business. Business insurance can cover a costly court battle with a client. It provides financial protection against defective materials, injuries, and accidents, and may be required by laws and contracts.
Save money on insurance
With Insureon, pool contractors can compare quotes from top-rated insurance companies to find coverage that matches their risks and budget.
A licensed agent will help you find the right policies, giving you peace of mind.
What types of insurance do swimming pool and spa contractors need?
These insurance policies cover the most common risks faced by pool and spa contractors and businesses.
General liability insurance
A general liability policy covers basic third-party claims, such as a client who trips over a piece of excavation equipment and breaks their ankle. It's often required for leases and contracts.
- Client bodily injuries
- Accidental damage to client property
- Harm caused by pool products
Business owner's policy
Also called a BOP, this insurance package bundles general liability coverage and commercial property insurance at a discount. It's the most cost-effective type of insurance if you have an office.
- Accidents that injure clients
- Client property damage
- Damage to your building or its contents
Workers’ compensation insurance
Most states require workers' comp for pool businesses that have employees. It also protects sole proprietors from work-related medical bills that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Employee injury lawsuits
Commercial auto insurance
This policy helps pay for legal fees and damages if a pool contractor's vehicle is involved in an accident. Each state has its own requirements for auto coverage.
- Property damage caused by a work vehicle
- Medical costs if another person is injured
- Vehicle vandalism and theft
Inland marine insurance
Inland marine coverage helps pay for repair or replacement of excavation equipment, shovels, levels, and other tools that travel to jobsites. It's also called tools and equipment insurance.
- Hand tools and power tools
- Backhoes and excavators
- Personal protective equipment (PPE)
Professional liability insurance
This type of insurance coverage pays for legal costs if a contractor is sued for negligence related to a pool or spa installation. It's also called errors and omissions insurance (E&O).
- Use of wrong materials
- Incorrect pool dimensions
- Failure to finish a pool on time
How much does swimming pool service insurance cost?
A small team of pool and spa contractors will pay less for insurance than a larger business.
Factors that can affect a contractor's insurance premiums include:
- Services you offer, such as pool installation, repairs, or cleaning
- Types of pools, such as aboveground, concrete, or one piece
- Business operations
- Value of your business property and equipment
- Types of insurance purchased
- Your per-occurrence and aggregate limits
- Coverage options and endorsements, such as an additional insured
How do I get swimming pool and spa business insurance?
It’s easy to get swimming pool contractor insurance policies if you have your business information on hand. Our application will ask for basic facts about your company, such as revenue and number of employees. Small business owners can buy a policy online and get a certificate of insurance (COI) with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose a policy.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. providers to find affordable insurance solutions that match your business needs, whether you're an employer, contractor, or subcontractor.
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FAQs about business insurance for swimming pool and spa contractors
Review answers to frequently asked questions about insurance and licensing for the pool industry.
Do swimming pool contractors need a license or certification?
Contractors who build pools and spas typically must have a license and permit to do their work, in addition to a regular business license. However, it depends on the laws in your state and the type of projects you take on.
Here are a few examples:
- You likely need a contractor's license. In most states, you'll need a contractor's license to build a pool or spa, usually once a project exceeds a certain value or size. Unlicensed contractors could face fines or even jail time.
- You probably need a permit. State, city, and county laws determine when you need a permit for a pool or spa, and regulate their construction along with safety measures like fencing. Pool installation and repairs usually require a permit—sometimes even for inflatable or pop-up pools over a certain depth.
- You might need EPA certification. If you work on heating and cooling systems in pools and spas, then you'll need the same Environmental Protection Agency (EPA) technician certification as an HVAC contractor. In addition, any project in a home built before 1978 requires you to obtain a lead abatement certification, either through your state or through the EPA.
- You may need a pool builder certification. The Pool & Hot Tub Alliance issues certificates in a variety of areas, including Certified Builder Professional (CBP). Even when it's not required, a certification can help raise your business above the competition when trying to get a contract or win a bid.
What other types of insurance do swimming pool and spa businesses need?
Pool and spa contractors have different insurance needs depending on their unique risks and exposures. You may want to consider the following insurance products as part of your risk management strategy:
- Commercial umbrella insurance activates to provide coverage when your underlying general liability insurance, commercial auto insurance, or employer's liability insurance policy reaches the limit on a claim.
- Business interruption insurance covers financial losses when your pool company is forced to close temporarily due to a fire or other covered property claim. It's also called business income coverage.
- Installation floater insurance is a type of inland marine insurance that covers damage or theft of pools and other materials awaiting installation. Commercial property insurance only covers items at your business address, which is why you may need additional coverage.
- Pollution liability insurance pays for your legal defense costs if someone sues your business over pollution, such as an accidental release of harmful chemicals into the environment.
- Equipment breakdown insurance helps your business recover financially if a piece of pool construction equipment breaks down unexpectedly, such as a Bobcat that suddenly stops working.