“How Do I Cover My Ass?” Protecting Your Pool Business When a Pool is Structurally Failing

When Pool Dreams Turn Into Business Nightmares

Every pool service professional has been there: you're maintaining a beautiful backyard oasis when suddenly you notice that telltale crack, the mysterious water loss, or worse—signs that the entire structure is compromising. What started as routine maintenance has now become a potential liability minefield. Do you walk away from the client? Continue service while repairs are made? How do you protect your business from the fallout of a structurally failing pool?

In a recent episode of the Talking Pools Podcast, host Steve Sherwood and insurance expert Pat Grignon from the California Pool Association tackle this exact scenario. Their conversation provides invaluable insights for pool professionals navigating the delicate balance between customer service and business protection.

The Reality of Structural Pool Failures

Sherwood opens the discussion by sharing a real-world scenario many pool pros will recognize. After discovering a leaking pool with obvious structural issues, his repair technician attempted a crack fix that looked promising initially. However, the victory was short-lived:

She called two days later and said it was losing water at a pretty steady rate again. So my guy said, you know, no, I can't fix this. He was like, we need to either get somebody to come and fiberglass into it, like over the shell. So in case the shell breaks, like you're good with the fiberglass or no more pool.

— Steve Sherwood, Talking Pools Podcast

This situation highlights a critical decision point for pool service companies. When traditional repairs fail and structural integrity is compromised, professionals must weigh the risks of continued service against their responsibility to maintain client relationships. The challenge becomes even more complex when dealing with pools in different geographical locations—a hillside pool in Silver Lake poses vastly different risks than one on a residential street in Lomita.

Documentation: Your First Line of Defense

According to Grignon, the foundation of protecting your business lies in meticulous record-keeping and clear communication. The insurance expert emphasizes that documentation doesn't need to be complex, but it must be consistent and comprehensive.

I think good record keeping is just a smart move in general. I think, you know, doesn't necessarily need to be, you know, like a notarized document or anything like that. But an email saying, hey, you know, like the original email when you notified her, hey, I think it's time to part ways or you should fill in your pool or get it completely demoed and rebuilt.

— Pat Grignon, Talking Pools Podcast

The key is creating a paper trail that clearly establishes your professional assessment of the situation and your recommendations. This documentation serves multiple purposes: it demonstrates your expertise in identifying hazards, shows you provided appropriate warnings, and establishes a timeline of events should legal issues arise later.

Phone conversations, while convenient, can become problematic without proper follow-up. Sherwood shares his experience with this common challenge, noting how verbal agreements or price quotes can become sources of confusion and dispute weeks later. The solution is simple but requires discipline: always follow up phone conversations with written confirmation.

The Communication Strategy That Protects Your Business

Effective communication goes beyond simple documentation—it's about setting clear expectations and boundaries while maintaining professional relationships. Grignon recommends a specific approach for handling these conversations:

Generally speaking, if it's a phone call, you send a recap email and say, hey, per conversation... you could look back and say, hey, this is exactly what it's going to be.

— Pat Grignon, Talking Pools Podcast

This "per our conversation" email strategy accomplishes several objectives:

• Creates written documentation of verbal agreements
• Provides opportunity for clients to clarify or correct misunderstandings
• Establishes professional boundaries and expectations
• Protects against memory lapses and conflicting recollections

When dealing with structural issues specifically, the communication should clearly outline the scope of services you can and cannot provide. Make it explicit that structural repairs are outside your expertise and that continued service is contingent on appropriate professional repairs being completed.

Risk Assessment: When to Stay and When to Walk Away

Not all structural issues carry the same level of risk, and understanding these differences is crucial for making informed business decisions. Sherwood illustrates this point by contrasting two different pool scenarios:

The first involved a pool on a hillside in Silver Lake where a catastrophic failure could trigger landslides affecting neighboring properties. The second was located on a residential street where failure would result in water drainage but minimal collateral damage. This risk assessment directly influenced his decision-making process.

Look, I think it's a good move. I think if you sent those emails or those texts and just say, you know, hey, and especially if you have something from her or if you had a conversation like, hey, per the conversation, you found a company that's going to fix this for you. We're happy to maintain service. In the meantime, if you have those things just tucked away somewhere, you can at least build a pattern.

— Pat Grignon, Talking Pools Podcast

The decision to continue service during repair periods should be based on several factors:

• Potential for catastrophic damage to surrounding property
• Client's commitment to professional repairs
• Your ability to document the situation appropriately
• Location and environmental factors
• Your company's risk tolerance and insurance coverage

Industry Insurance Trends Affecting Pool Professionals

The podcast also addresses broader insurance market trends that are impacting pool service companies nationwide. Commercial insurance markets are increasingly pushing pool contractors into the excess and surplus (E&S) market due to defect claims, pollution exposure from chemicals, and structural issues like pool pop-ups.

These market changes mean higher premiums, more exclusions, and stricter underwriting requirements. Insurance carriers now want to see written safety protocols for chemical handling, vehicle safety, and comprehensive documentation of employee performance. The hiring and training practices of pool companies are now directly affecting insurability and premium costs.

For professionals in high-risk areas like Florida's coastal counties or California's wildfire zones, these challenges are particularly acute. Property insurance costs have skyrocketed, with some areas seeing 100% year-over-year premium increases. This reality affects not only pool service companies but also their clients' ability to maintain adequate property coverage.

Practical Steps for Protection

Based on the expert discussion, pool professionals should implement these protective measures:

• Establish Documentation Protocols: Create templates for common scenarios involving structural issues, including clear language about scope limitations and recommendations for professional repairs.
• Implement Follow-up Systems: Develop procedures to ensure all phone conversations are documented with follow-up emails within 24 hours.
• Create Risk Assessment Guidelines: Develop criteria for evaluating whether to continue service during structural repair periods, considering factors like potential damage scope and client cooperation.
• Review Insurance Coverage Regularly: Work with insurance professionals familiar with the pool industry to ensure adequate coverage and understand policy limitations.
• Maintain Professional Networks: Build relationships with structural repair specialists, engineers, and other professionals who can provide expert assessments when needed.

The Bottom Line: Professional Boundaries Save Businesses

The key insight from this discussion is that protecting your pool service business isn't about avoiding all risks—it's about managing them intelligently through proper documentation, clear communication, and professional boundaries. As Grignon notes, you're not the insurance police or general contractor; your role is to identify hazards, make appropriate recommendations, and document your professional assessment.

The most successful pool professionals understand that sometimes the best customer service means clearly defining what you can and cannot do. By maintaining detailed records, communicating expectations clearly, and making risk-based decisions about client relationships, you can protect your business while still providing excellent service to clients facing difficult situations.

Whether dealing with a minor crack that keeps reopening or a major structural failure threatening neighboring properties, the principles remain the same: document everything, communicate clearly, and make decisions based on factual risk assessment rather than emotional attachment to client relationships. In an industry where the unexpected is always possible, these practices aren't just good business—they're essential for long-term survival.

Episode Chapters

• 00:00 Introduction and Current Pool Situations
• 05:30 Documentation and Communication Strategies
• 12:15 Risk Assessment and Decision Making
• 18:45 Insurance Market Trends and Industry Impact
• 25:30 Practical Protection Strategies