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Insurance is always a gotcha question asked by those in schools wishing to reject facility usage. Glad to take on this concern straight away.
First of all, what does the school district do about insurance for the other sports teams at the school -- such as baseball, football and basketball?
As a school sponsored sports activity, swimming, water polo, SKWIM and other associated educational activities should be insured by the school district.
Outside groups that use the school-owned, (generally public-financed) facilities for their own programs generally need to furnish proof of insurance coverage for certain dollar amounts for liability, personal harm, damages, etc. However, this proposal is about energizing a school-based program with outside support.
Secondly, in the context of the sub-contracted athletic trainer model: What does the school require for insurance for the athletic trainers that are integral to the athletic programs?
Swim clubs that use school facilities as outside groups can obtain insurance. USA Swimming membership provides coverage. Same too with American Water Polo and the A.A.U. A number of insurance options are available, for a price, if desired.
Costs becomes an issue. However, reduced payment options exist with diversity classifications with USA Swimming.
Proper solutions for the insurance requirements are expected. Some research is necessary. See I-League Insurance.
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