Our focus is on prevention, but aquatic experts agree that even at the best run pools accidents can happen. That is why liability insurance is such an important part of risk management.
We have concluded that $20 million insurance limits are necessary for swimming pool management companies that provide lifeguards. To see why, please see Liability Insurance Explained.
Many misconceptions exist around the crucial topic of Liability Insurance. The following are basic FAQs.
Why do you need $20 million in liability insurance coverage? Isn’t that excessive?
No, it is not excessive – it is adequate. Recent swimming pool suits include $14 million and $16 million judgments (none of them ours). Years ago, we decided to purchase coverage for the catastrophic event. We simply believe in providing the best in safety and risk management.
Does your company have a lot of insurance claims?
No. We have an excellent safety record. We simply recognize that a catastrophic event can happen anywhere, at any time, even at the best-run pools. Without adequate coverage there is exposure to risk. The $20 million in coverage minimizes risk in the event of a catastrophic event, or several moderate events.
If your lifeguards are so well trained, and the pool is run well, why are you concerned about accidents and lawsuits?
Accidents can happen, even at the best-run pool. Human error and environmental issues both contribute to the possibility of a tragic accident. View this article and video demonstration on bodies becoming invisible underwater.
Is professional liability coverage needed, if general liability insurance exists?
Yes. Potential exposures at swimming pools involve some events that would only be covered by Professional Liability Insurance and some events that would only be covered by General Liability Insurance. The distinction between the two policies is not a clear line, but an example may be helpful:
If someone is injured at the pool there may be a claim resulting from that injury. This claim would fall under the General Liability policy. If, however, a lifeguard provided care and as a result of the care provided the person is injured further, this claim would fall under the Professional Liability policy.
The important thing to understand is that if a swimming pool management company only has General Liability coverage, and does not have Professional Liability coverage, there is liability risk that is not covered.
Liability Insurance Limits
*Swimming Pool Lawsuit Judgments in orange
Gottesman v. Cathedral Oaks Tennis, Swim & Athletic Club, Inc., et al.
Verdict: $16.2 million jury verdict to parents of son who drowned in defendants’ swimming pool while attending day camp.
Jury awards $14 million to family of drowning victim.
A jury awarded the family of a 4 year-old drowning victim nearly $14 million in damages. The personal injury victim drowned on the first day of summer camp almost four years ago.
$4 million wrongful death verdict to parents of child who drowned in swimming pool.
In a wrongful death lawsuit, a jury awarded over $4 million to the family of a boy that drowned in a country club pool.
Cook County jury awards a gross verdict of $8.1 million to victim of swimming pool accident.
A Cook County jury has granted an $8.1 million award to a 22 year-old man who dove into a swimming pool and was rendered an incomplete quadriplegic.