Do Subcontractors Put Your Pool Business at Risk? Insurance Tips for Texas Builders

Texas pool builders who hire subcontractors face major liability risks. Learn how insurance can protect your business from their mistakes.

Do Subcontractors Put Your Pool Business at Risk? Insurance Tips for Texas Builders

Hiring subcontractors is a common part of running a pool construction business in Texas. From electricians and plumbers to tile installers and landscapers, subcontractors help you complete jobs on time and on budget.

But here’s the catch: if they mess up, you could be held responsible.

Whether you’re working on luxury backyard pools in Dallas or commercial installations in Houston, using uninsured or underinsured subcontractors can expose your business to serious legal and financial risks. In this post, we’ll break down those risks and share smart insurance tips to keep your company protected.

The Hidden Risks of Using Subcontractors

Many Texas pool builders assume that hiring a subcontractor means liability is passed off to them. But in reality, courts and clients may still hold your company accountable if something goes wrong.

Here are a few common scenarios:

• A subcontractor causes property damage while installing pool lighting.
• An unlicensed worker is injured on your job site and files a claim.
• A client sues your company over poor workmanship done by a subcontractor.

If your contracts and insurance policies aren’t set up properly, you could end up footing the bill.

Why Liability Falls Back on You

Texas law and insurance carriers generally see you as the general contractor or primary business owner, meaning you bear responsibility for:

• The safety of the job site
• The quality of the final product
• The actions of workers hired under your company’s name

That means even if a subcontractor causes the problem, your business could be named in a lawsuit or claim. And if that subcontractor doesn’t have valid insurance? You’re on the hook.

Insurance Tips to Protect Your Pool Business

You don’t have to stop using subcontractors—you just need the right strategy and coverage in place.

1. Require Proof of Insurance from Every Sub

Before any subcontractor steps onto your site, request a Certificate of Insurance (COI) that shows they carry:

• General liability insurance
• Workers compensation (if they have employees)
• Commercial auto (if they use vehicles on the job)

Don’t just take their word for it—verify that the policy is active and has adequate limits.

2. Add Them as Additional Insureds (and Vice Versa)

Ask to be listed as an additional insured on their liability policy. This extends their policy coverage to your business in case of a claim.

You can also offer to do the same for them if it makes sense contractually.

3. Use Strong Subcontractor Agreements

Put everything in writing. Your subcontractor contract should clearly outline:

• Scope of work
• Licensing requirements
• Insurance requirements
• Indemnity and hold harmless clauses

Consult with an attorney to make sure your agreements are enforceable in Texas.

4. Carry Your Own General Liability and Umbrella Coverage

Even with subcontractors properly insured, you still need your own protection. Make sure your general liability policy is up to date and consider an umbrella policy to add extra coverage in case of a large claim.

5. Workers Comp for All Job Site Workers

Texas doesn’t require all businesses to carry workers comp, but it’s strongly recommended if subcontractors or day laborers are on your site. Some policies even cover uninsured subcontractors, but only if disclosed in advance.

6. Review Coverage Annually

As your projects grow in size and complexity, your risks change too. An annual insurance review with your agent ensures your coverage evolves with your business.

Real-World Scenario

A pool builder in Austin hired a subcontracted electrician who accidentally overloaded a panel, causing fire damage to the client’s home. The electrician had no insurance. The client sued both the subcontractor and the pool builder.

Because the builder had strong general liability and an umbrella policy, they were able to cover the claim and legal costs. But had they not carried proper insurance, the business could have faced bankruptcy.

Bottom Line: Vet Your Subs, Protect Your Biz

Subcontractors can be a huge asset—or a massive liability. Protect your Texas pool business by making sure every sub you work with is properly licensed, insured, and under contract.

And don’t leave it to chance. Even if you trust your subs, your insurance is your safety net.

Need guidance? Contact McKnight Insurance to speak with a local agent who understands the risks Texas pool builders face. We’ll help you build a custom insurance plan that protects your projects, your people, and your reputation.