A swimming pool is an exciting addition to any home, offering endless opportunities for relaxation and entertainment. However, pool construction entails much more than just digging a hole and filling it with water—it’s a complex project involving heavy equipment and specialized labor. These complexities can pose significant risks homeowners shouldn’t overlook. 

According to Thomas McMillan, commercial lines staff underwriter at Central Insurance, “Homeowners often underestimate the liability they could face during pool construction. Ensuring your contractor has the right pool insurance isn’t just smart—it’s essential.” 

Proper pool insurance encompasses a range of coverages designed to protect contractors, workers, and homeowners from financial fallout due to accidents, property damage, or other unforeseen issues during and after construction. Read on to learn what you need to know before your pool construction begins.

Key Risks Pool Contractors Face

Pool contractors navigate various risks throughout construction, many of which can lead to costly claims if not properly managed. “The unique nature of pool construction—working with heavy machinery, digging deep foundations, and handling chemicals—creates a perfect storm of risks if not properly managed,” McMillan warns.

Some of the most common risks include:

1. Premises and Operations Exposures

Accidents on the job site, such injuries to visitors or subcontractors , pose a significant risk. Negligence, like leaving equipment or tools unsecured, can also lead to third-party injuries.

2. Completed Operations Exposures

Poor workmanship or defects may lead to property damage or bodily injury after the project is finished. Examples include leaks due to improper sealing or structural cracks. “A poorly built pool can lead to major property damage—not to mention expensive claims against the contractor,” McMillan notes. 

3. Auto Liability

Contractors face increased risks while transporting equipment and materials. Collisions are a major concern, especially when traveling during early morning or late evening hours. 

4. Worker Injuries

Construction involves physically demanding tasks, with power tools and heavy machinery creating a high risk for workplace injuries. Without proper safety protocols, these incidents can result in expensive Workers’ Compensation claims. “If a worker gets hurt on your property and your contractor doesn’t have Workers’ Compensation, you could end up in legal trouble,” McMillan advises. 

5. Tools and Equipment

Damage or theft of specialized tools and equipment is a significant risk on jobsites. These incidents can halt progress on the project and lead to unexpected additional costs, resulting in delays and financial strain.

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Essential Pool Insurance Policies

McMillan explains that when hiring a contractor, it’s important to look beyond experience and reputation. He advises homeowners verify their contractor’s insurance coverage to protect themselves from legal or financial issues arising from on-site claims.

6  Essential Pool Insurance Policies to Discuss with Your Contractor:

1. General Liability Insurance
   Protects against bodily injury or property damage claims caused by the contractor’s negligence during and after the project. 
2. Workers’ Compensation
   Protects workers in case of job-related injuries and shields you from potential liability as the homeowner. Most contractors are legally required to have this coverage. 

3. Commercial Auto
   Covers accidents involving the contractor’s vehicles during material transportation or site visits.

4. Builder’s Risk Insurance
   Protects the pool structure and materials from damage caused by theft, fire, or weather while under construction.

5. Contractors Errors & Omissions (E&O)
   Covers financial losses stemming from mistakes or defects, such as misplacing pool equipment or installation errors.

6. Umbrella Coverage
   Offers additional protection beyond the limits of general liability, auto, and Workers’ Compensation policies.

Questions to Ask Your Contractor About Their Pool Insurance Coverage

Understanding your contractor’s pool insurance before signing any contracts is important. Start by requesting a certificate of insurance and ensuring their policies include the coverages listed above. Reputable contractors should be transparent about their coverage and willing to provide proof, so don’t hesitate to ask questions.

These may include:

• Do you carry general liability insurance? What are your coverage limits?
• Can you provide proof of Workers’ Compensation insurance for your employees?
• Are there any exclusions in your policies that might impact the project?

“Approaching the pool insurance conversation with confidence and clarity shows you’re serious about safeguarding your investment and ensures the contractor is equally committed to quality and accountability,” Thomas says.

The Central Difference

Building a pool is an exciting project, but you and your contractor must be properly protected throughout the process. Verifying your contractor’s pool insurance coverage is critical in avoiding unexpected liabilities. If you’re unsure what to look for, consider working with a contractor insured by Central. Our internal specialists and agent partners work with our policyholders to ensure the contractors we insure—and their clients—are covered from project start to finish. 

Learn about pool risks and coverages you’ll need as a new pool owner:

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