The Real Cost of Ignoring Workers Comp – Even If Your State Doesn’t Require It

Workers comp may not be required in Texas, but skipping it can wreck your pool business. Learn the real financial and legal risks — and how to protect your crew without overspending. 

 Texas is one of the only states where employers aren’t required to carry workers compensation insurance. As a pool contractor, that might seem like a nice break — one less bill, right? 

But here’s the truth: not carrying workers comp can cost you far more than just a monthly premium. One injury on the job can trigger medical bills, lawsuits, and lost contracts — even if the worker is a 1099 or “helper.” 

At McKnight Insurance, we work with pool builders, service companies, and water feature installers across Texas. And we’ve seen how fast one accident can drain a business financially when coverage is missing.  

What Workers Comp Actually Covers 

Workers comp is designed to protect both your business and your employees. It covers: 

• Medical expenses from work-related injuries or illnesses 

• Lost wages while an employee recovers 

• Rehabilitation costs 

• Death benefits for surviving dependents 

It also shields you from most lawsuits related to workplace injuries. 

Even if you don’t have full-time employees, these protections matter — especially if you work with part-time labor, day help, or 1099s.  

Common Pool Contractor Scenarios That Go Wrong 

Scenario 1: Your tech slips on a wet deck and breaks their ankle. 

• If you don’t have workers comp, you’re now paying medical bills out of pocket — or getting sued. 

Scenario 2: A “helper” you paid cash for the day gets chemical burns handling chlorine. 

• Even if they were a 1099, you could be liable under “statutory employer” rules or during a lawsuit. 

Scenario 3: A general contractor requires you to carry WC to bid the job. 

• Without it, you’re out — or scrambling to get coverage last-minute at higher cost.

The Hidden Financial Risks of Skipping Workers Comp 

You may save a few hundred dollars a month, but here’s what you’re risking: 

• Six-figure medical bills 

• Personal injury lawsuits from workers or their families 

• Lost contracts that require proof of WC 

• Damage to your business’s reputation or ability to hire 

We’ve had clients come to us after a serious claim, only to realize they can’t get affordable coverage anymore — or worse, they’re stuck paying it out of pocket.  

Ghost Policies: The Smart Middle Ground for Solo Operators 

If you’re a one-man operation or working owner, you can still carry a “ghost” workers comp policy. It shows you’re covered, satisfies certificate requirements, and costs a fraction of a full policy. 

Even better, it keeps you compliant with general contractors or clients who want a WC certificate — without you needing to pay full payroll premiums. “I don’t think you can get this with employees, if you have employees they must be covered”  

What About Subcontractors or 1099s? 

Here’s the catch: even if your subcontractor is a 1099, if they don’t carry their own workers comp, and they get hurt, you could be on the hook. 

That’s why we recommend: 

• Only using subs who carry their own WC 

• Collecting a certificate of insurance before they ever step on a jobsite 

• Having clear contracts in place with hold-harmless and indemnification language 

If you’re regularly using 1099 labor with no coverage, your GL or umbrella policy may not protect you from injury lawsuits.  

How McKnight Insurance Helps Pool Companies Handle Workers Comp 

We get it — cost matters. That’s why we help pool contractors: 

• Get affordable coverage from industry-friendly carriers 

• Classify payroll properly to avoid overpaying 

• Use ghost policies where appropriate 

• Add or remove employees as needed without major surprises 

• Get ahead of audit season with proper reporting 

We also explain exactly how your coverage works, so you’re not left guessing when something happens.  

You Don’t Need to Be Required to Do the Right Thing 

Protecting your team isn’t just about avoiding lawsuits — it’s about showing clients and partners that you run a serious operation. 

And the truth is, you’re not saving money by skipping workers comp — you’re gambling with your business.  

Let’s Get You Covered Before the Busy Season Hits 

We’ll walk you through the best option based on your setup — from solo owner to 10+ employee crews. Fast quotes, no pressure. 

Call McKnight Insurance today or book a 15-minute coverage review.
Let’s protect your business, your workers, and your peace of mind.