When you say "cover it up", what do you mean?
What exactly did the insurance company direct you to fix?
I'm wondering if the insurance company has requested you to fill the pool and you are reluctant to comply because the pool is defective and unable to contain water. Is that it? And you don't want to have it repaired due to the expense?
I think what the insurance company may be concerned about is the possibility of someone falling into the empty pool and injuring themselves. Falling into a pool of water from ground level will not usually result in broken bones.
Usually what the insurance company wants is for the pool to be in good working order and full of water to avoid injury. Some insurance companies, as well as some city ordinances, also require a 4 or 6 foot fence around the pool area to protect unnattended children from falling in and drowning.
Placing a cover, such as a tarp, over the empty pool does not really solve the problem as a person could go right through the tarp into the giant hole.
To completely remove the pool, you may be required to have all of the cement removed which is expensive.
In your area, I would think that a pool would be more of an asset than a liability in resale (You can verify that with your agent)
1. How much will it cost to have the pool repaired?
2. How much will it cost to have the pool completely removed?
3. Do you prefer to have a pool, or not?
4. What else would you do with the space if the pool were not there?
5. Is there a difference in value between a home with a pool and one without a pool? If so, how much?