Pool-related lawsuits are fairly common. In Boise, Idaho, a chemical leak at a pool left a family choking and sick, leading them to sue the city (this could have very well been pinned on the pool contractor). In Texas, an insurance company filed a lawsuit against a pool company for an explosion at one of their client’s homes. And in Nebraska, a woman sued her pool contractor for project delays. E&O insurance could have potentially rescued (at least financially) the two pool contractors in Texas and Nebraska.
In a lot of cases, the damage, delay or pool-related accidents may or may not be the pool contractor’s fault. But proving one’s innocence in court is also an expensive proposition. And in case you lose the case, penalties can sometimes be high enough to wipe out everything you’ve built over years, in an instant.
That’s why pool contractors need insurance. In this blog, we discuss 12 risks at various stages of pool construction and how to protect your project (and your business) with on-ground precautions and specific insurance coverage. We’ll also direct you to specific insurance coverage for every kind of pool construction risk.
Try These Protection Mechanisms For Every Stage Of Pool Construction
Swimming pool builders need a mix of precautionary measures and insurance protection to protect your business. Insurers and courts will look at due diligence to avoid injuries, accidents, project delays and environmental damage should any of these occur. In such instances, your efforts in prevention go a long way in protecting you in a court and getting claims signed off by insurers. Let’s get checklisting!
Excavation Stage
Risk #1: Utility line damage
At this stage, there is the very real danger of damage to underground utilities (gas, water, electrical lines). Mitigate this risk by conducting a thorough utility locate (call 811). You should also use ground-penetrating radar (GPR) to identify buried lines.
General liability insurance jumps to your rescue in case of accusations that your swimming pool construction or excavation job hit a utility line (and also in other cases of property damage). It may also be called swimming pool construction liability insurance.
Risk # 2: Soil collapse dangers
There is also a high risk of soil collapse during this stage, presenting grave danger to your onsite team. Be sure to combat this risk by implementing trench shoring or sloping techniques per OSHA standards (if you aren’t already).
Your next line of protection should be workers’ compensation insurance to cover injuries or fatalities from excavation accidents. It should be worked into your pool construction and remodel insurance package.
Structural Construction Stage
Risk #3: Structural failure
In cases of incorrect rebar placement or concrete curing errors, structural failure is a real risk. Invest in inspections by certified engineers, and have them verify that ASTM standards have been met.
However, if you do find yourself in a structural failure nightmare despite your best efforts and written sign-off from certified experts, professional liability insurance can jump to your rescue. Make sure to get a swimming pool builder’s insurance package that includes this basic (and also crucial) coverage.
Risk # 4: Heavy equipment accidents
If your workers are injured while operating heavy equipment, even if the mistake is theirs, you could face penalties, depending on how things play out in.
Mandate OHSA-compliant safety training and personal protective equipment (PPE). Appoint and empower an onsite “monitor” for every job, and make them the whistle-blower for anyone not adhering to PPE guidelines. Reward, rather than ridicule, snitching on team-mates for not wearing PPE.
With all of these precautions and workers’ compensation in a worst-case scenario, your team is well protected (and your business also stays safe from lawsuits related to worker safety).
Plumbing and Electrical Installation Stage
Risk # 6 Leaks and electrical faults
These might rear their heads during your project or even later. That’s why it is absolutely crucial to use licensed plumbers and electricians. Have them conduct pressure tests and inspections. You might also want to ensure they have insurance, and you might have to share indemnity for this part of the job.
As a final line of defense, be sure to include Errors and Omissions (E&O) Insurance in your swimming pool contractor insurance package—this type of insurance covers you against claims arising from faulty installations.
Risk # 7 Environmental contamination
In today’s climate, chemical spills or improper disposal of construction materials can make headlines.
Your best course of action is to explain the implications of improper disposal of hazardous materials and sloppy spill containment—explain why following EPA guidelines is crucial and what the downstream consequences of not doing so can be for workers, and the business.
Sure, they may not land in the same financial soup that your business would, but who is going to hire the guy whose mistake rendered his previous employer bankrupt!
Be sure to also invest in environmental liability insurance as part of your swimming pool builder’s insurance package—in case an accident occurs, it can cover clean-up costs and fines.
Finishing and Landscaping Stage
Risk # 9: Rule-flouting
Here’s the truth: Your client might just ask you to construct a pool that does not comply with the HOA’s norms or local zoning regulations. From the fence’s height, to the pool’s size, there are a ton of factors to pay heed to. To hedge against this risk, ask for Non-compliance with HOA or local zoning regulations (e.g., fence height, pool size), review HOA covenants and local codes before starting work. Ask for these and permits in writing. If your client claims to have these and instructs you to go ahead as everything is in order, ensure you respond in writing (even if their comment was verbal) outlining the discussion.
Check if the professional liability cover within your swimming pool contractor insurance package includes pollution liability. If not, opt for dedicated coverage. Make no mistake. With sustainability being a much bigger theme today than in decades past, a pollution-related lawsuit could run into millions of dollars. Additionally, pollution might affect more people, and would ramp up penalty charges.
Risk # 10: Accidental property damage
Pool construction sites tend to be accident-heavy zones. Heavy equipment, men at work, drilling and excavation, large amounts of water once the pool is ready; a lot can go wrong. You could damage your client’s property or their neighbor’s property while moving equipment or amidst excavation, or on account of water damage.
There’s not much you can do about this other than what you and your onsite time are (presumably) already practicing: Using protective barriers, indicating dangers with signage, and communicating with your client and their neighbors about ongoing construction work zones.
The general liability cover from your swimming pool builder’s insurance package will kick in, if damage occurs nevertheless. Maintain images of all signs and barriers, and proof of all communication about work timings and zones.
Post-Construction Stage (Usage Stage)
Technically, your work here is done. Legally, you’re still on the hook.
Risk #11: Slips and falls
Slip-and-fall accidents due to slippery pool decks or inadequate signage can easily be pinned on you. Install slip-resistant surfaces and post warning signs per ADA and local safety standards. In addition, the E&O cover from swimming pool builder’s insurance package should step in: this type of insurance covers errors and oversights and helps you battle accusations of negligence, incomplete work or undelivered services, and also delays.
Risk #12: Equipment malfunction
If pumps and filter malfunctions lead to pool downtime or water quality issues (and especially if people fall sick) you could find yourself faced with a lawsuit.
Combat this by providing clients with maintenance manuals. You can also offer routine service contracts. (This also means incremental business and earnings!) Be sure to explain how servicing and maintenance are crucial to long-term safety. Check-in when servicing is due, to complete due diligence. If declined, maintain a record that servicing was offered and its significance sufficiently explained. It might help in case of a lawsuit.
If your project was related to a public pool, maintain proof of written recommendations about placement of signs about slippery and wet areas around the pool.
In the event of a lawsuit, claim or penalty despite these measures, professional liability cover within your swimming pool builder’s insurance policy should help you defend in court and pay off any penalties.
PoolPro: Comprehensive Swimming Pool Builder’s Insurance You Can Count On
You can go out there and get any type of business insurance, but that comes with the risk of gaps where pool-construction-specific risks exist. You need an insurer who understands your business. (By the way, you also need the right insurance advisor, read all about finding the right broker here). PoolPro is a tailored insurance program for pool contractors, crafted by insurers who understand your business. It is designed specially for all facets of pool, spa, and hot tub maintenance, from installation and construction to servicing and repair.
Coverage you can bundle into your package include:
- General Liability
- Errors & Omissions
- Auto Liability
- Property
- Inland Marine
- Umbrella/Excess Liability
- Equipment Breakdown
- Contractors Pollution Liability
- Employment Practices Liability
- Cyber Liability (if you’re accepting online payments, you probably need this!)
- Workers’ Compensation
Ask your broker to protect your business thoroughly. Gaps in your coverage can sometimes be as good as no coverage. It’s easy to get comprehensive protection with PoolPro. Have your call at 800-446-7647 if they need more details.
FAQs
What insurance do pool contractors need for excavation risks?
Pool contractors should have general liability insurance for underground utility damage and workers’ compensation insurance for excavation-related injuries.
How can pool contractors protect against structural failures?
Professional liability insurance covers swimming pool builders from claims related to structural failures due to design or engineering errors. Always hire certified engineers for inspections.
What insurance covers pool equipment malfunctions?
Equipment breakdown insurance covers repair or replacement costs for damaged pool equipment like pumps and filters.
Do pool contractors need insurance for slip-and-fall accidents?
Yes, E&O insurance protects against claims from slip-and-fall accidents caused by slippery pool decks or inadequate signage.
