Sounds fun...maybe a few of the other Mom's might be able to help out.
If you're concerned about your insurance coverage I suppose you could ask your agent or review your policy to see what liability coverage you have and what it covers exactly. If a pool is covered, then do your best to eliminate possible hazards and have a plan in mind in case something should happen.
We have a lake in our neighborhood so our boys grew up practically living on the water doing all kinds of stuff, all of which had safety hazards. Kids are kids JW's or not...I do know one thing and that is, it's good to create a safe setting for your kids to have fun with their friends but it's also good to let them have at it....stay in the background yourself so that they can become their own person without having to sensor themselves too much because ol' Mom and or Dad are hoovering around. This will be a little harder to accomplish since there is a pool involved but worth the effort I'd say.
If the pool idea scares you off, you could have a water baloon fight or get a few of those super soaker water guns maybe set up a bunch of sprinklers. Maybe you could set up a few shallow kiddie pools and have a tug of war where they tried to pull eachother into the pool. Have all the stuff they'll need gathered and let them set it all up... that's part of the fun. Kids and water are automatic fun.
