Quite suddenly you decided to hand up your white lab coat testing crummy PH levels and made a pact with your pet parrot to start a new business that involves your know how in water chemistry and your new-found passion for meeting new people. Then it hits you, a pool business would be the perfect opportunity because you are surrounded with inns and motels that need regular pool cleaning. Perfect!
You get busy with applying for a business name, paying for a business license, purchasing equipment, hiring trustworthy personnel, and promoting your pool cleaning business. The first customer calls and asks you about your service. You're all eager to go but then you realize you haven't bought insurance yet. Okay, tell your first customer his business means a lot to you so much that you need to buy insurance first.
Here's what you need to find out when buying insurance for your pool cleaning business:
- You need three types of insurance coverage. You read it right. You need three, tres, trios, III. These three types are namely liability, employee accident, and equipment insurance coverage.
- Liability insurance is for damage incurred while your crew is cleaning the pool. For example, the stand-alone filter is damaged during cleaning and one of the pool's vacuums stops working after cleaning. Insurance steps in to pay for the damage and replacing the parts of the pool or equipment that helps clean the water without cost to you as a business owner.
- Employee accident insurance. Pretty self explanatory. Insurance steps in when something happens to your employee in the performance of his duty/job as a member of your pool cleaning crew.
- Equipment insurance is needed because your equipment will eventually bog down through the usual wear-and-tear process. Pool cleaning equipment is not cheap so it is recommended that you buy this coverage along with the other two. Please include your trucks in the insurance policy.
- Specify that what you need is business insurance not a personal insurance. This means that your insurance policy will carry the name of your business with you being declared as the owner of the business. Taking out a personal insurance under your name won't do anything to protect your business, your employees, and equipment and it certainly won't cover complaints that will fall under liability. Ergo, be very precise that what you want to buy is business insurance. Is that clear?
- Include TPL or Third Party Liability in the insurance clause. This provides another buffer for your business insurance coverage. What is TPL? TPL means that someone or something else other than your business has caused damage to property. For example, while cleaning a pool filter, your crew discovers that it has been haphazardly cleaned and improperly placed back together. Your crew tells the pool owner about this but the pool owner insists your crew just put it back together as usual. When the pool has been cleaned, the filter acts up. This is where you can rely on TPL to pay for it instead of seeking a lawsuit that will prove more expensive in the long run.
- Go for maximum insurance coverage regardless of cost. Hold on. Before you go all drama king on this tip, please read further. This simply means that you don't go all scroogey on the cost of insurance premium. If you choose the lowest premium you'll end up with lemons. In the pool cleaning business you can't afford to make lemonade ‘cause lemonade ain't footing the bills. Instead, be a man and choose an insurance package that might hurt your bottom line for a while. This is going to pay off big time in the end. When accidents or liabilities strike (these will), your bottom line won't hit rock bottom.
Now you're really ready to open for business. Go back to your first customer and start cleaning pools today!
For more information about the pool cleaning business, check out 13-year business specialist veteran Davy Feller at www.poolcleaningbusiness.com