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In the video tutorial, the importance of liability insurance for pool service companies is emphasized. Regardless of how careful one is on a pool route, mistakes can occur, leading to potential liability issues. The speaker shares a cautionary tale about a friend whose employee left a gate open, resulting in a serious incident where a child fell into a pool and sustained brain damage. The friend faced a lawsuit exceeding one million dollars, but fortunately, his liability insurance covered the claim. Without this coverage, he could have lost all his assets and faced bankruptcy. Thus, having liability insurance is crucial for protecting business assets and ensuring financial security.
