Top 5 Insurance Claims Filed by Pool Companies (And How to Avoid Them)

Pool service and construction companies face five common insurance claims — many of which are preventable. Learn what they are, how to avoid them, and how the right policy can save your business.  

Pool companies deal with a unique mix of jobsite hazards, property risks, chemical exposure, and crew injuries. It’s no surprise that the same types of claims show up again and again — often costing contractors thousands in repairs, legal fees, or downtime. 

At McKnight Insurance, we’ve helped dozens of pool contractors file and defend claims. These are the top five we see — and how smart insurance planning (plus a few jobsite changes) can help you avoid them entirely.  

Claim #1: Property Damage During Installation 

Example: A sub hits a gas line while digging for a new pool shell.
Payout Range: $5,000–$50,000+ 

This is the most frequent claim we see with builders and installers. Whether it’s damaging a client’s patio, breaking underground lines, or cracking existing tile, property damage claims are serious. Often, GL will cover it — but not always if it’s subcontracted out improperly or excluded in your policy. 

How to avoid it: 

• Always call 811 before you dig 

• Have subs sign proper contracts (with COIs naming you as additional insured) 

• Confirm your GL policy has no “residential new construction” exclusions

Claim #2: Water Damage After Repairs 

Example: A tech replaces a pump seal, but it fails and floods a mechanical room overnight.
Payout Range: $10,000–$80,000 

This is especially common for pool service and maintenance crews. A simple equipment issue — or even human error — can lead to serious indoor water damage, especially in luxury homes. Some contractors think their GL or tools policy covers this… until they’re told otherwise. 

How to avoid it: 

• Don’t assume general liability covers completed work — verify it 

• Use quality parts, document repairs, and train employees 

• Consider adding contractor’s errors & omissions or limited professional liability

Claim #3: Employee Injury or Chemical Exposure 

Example: A pool tech slips on wet tile while carrying muriatic acid and breaks their ankle.
Payout Range: $15,000–$100,000+ 

Even in states like Texas that don’t require workers comp, these claims can hit hard — especially if a third-party (like a homeowner or HOA) is also affected. If you hire subcontractors or 1099s and they get hurt, you could still be liable. 

How to avoid it: 

• Carry a workers compensation policy (yes, even if you’re exempt) 

• Train techs on chemical handling and safe lifting 

• Provide proper footwear and PPE

Claim #4: Tool or Equipment Theft 

Example: A service truck is broken into overnight and $8,000 in gear disappears.
Payout Range: $5,000–$15,000 

Inland marine (aka tools and equipment coverage) is your friend here — but only if you have it. Standard property or GL policies often don’t cover theft from a vehicle or jobsite. Worse, many contractors don’t inventory their tools until after a loss. 

How to avoid it: 

• Lock all vehicles and trailers — even at the shop 

• Keep an up-to-date list of tools and serial numbers 

• Add inland marine to your policy — coverage is cheap and flexible

Claim #5: Subcontractor-Related Liability 

Example: A tile sub injures someone with a saw at a jobsite — and you get named in the lawsuit.
Payout Range: Varies wildly — often $25,000+ 

If you use subcontractors, your name can end up in a claim even if you weren’t directly involved. If they don’t carry their own insurance, or don’t list you as additional insured, you may be paying for their mistake. 

How to avoid it: 

• Get COIs from every subcontractor 

• Require additional insured and waiver of subrogation wording 

• Work with an agency that reviews and stores these for you (like McKnight)

Final Thoughts: You Can’t Prevent Every Claim — But You Can Prepare for Them 

Most of these claims are completely preventable with the right mix of training, contracts, and coverage. But the truth is, even the safest and smartest pool companies will eventually face a loss. 

That’s why McKnight Insurance doesn’t just sell policies. We help you understand: 

• What’s actually covered 

• Where your biggest exposures are 

• How to minimize your risks before the claim ever happens

Let’s Review Your Risk Before It Becomes a Problem 

Whether you’re a one-truck operation or a multi-crew pool builder, we can audit your current setup and recommend smart, cost-effective protection. 

Call McKnight Insurance today or book a quick risk checkup.
Let’s make sure your next claim doesn’t sink your business.