Does a Texas Plumber with 1 Helper Need Workers Comp?

Short Answer: No, Texas law does not force you to buy workers’ comp for one helper. But if you skip it, you lose every legal defense if that helper gets hurt. No arguing he was careless. No arguing he knew the risks. He can sue you for pain, suffering, and lost wages with no cap. For $500 to $1,600 a year, that’s a gamble most plumbers shouldn’t take.

---

The Texas Exception

Texas is the only state in America where private employers can legally opt out of workers’ compensation entirely. You can run a plumbing business with employees and carry zero workers’ comp coverage. It’s not illegal.

But the Texas Department of Insurance is blunt about what happens next: employers without coverage lose protection from most lawsuits by injured workers. And in court, you can’t use three defenses that normally protect businesses:

• You can’t argue the employee’s own negligence caused the injury
• You can’t argue another employee’s negligence caused it
• You can’t argue the worker knew about the danger and accepted it

That third one matters most for plumbers. Every helper knows plumbing is physical work. Lifting water heaters, crawling under houses, working with pipe cutters. If a helper gets hurt, he can’t be told “you knew what you signed up for.”

---

Is Your Helper Actually an Employee?

Here’s where a lot of Texas plumbers get themselves in trouble. They pay their helper as a 1099 contractor and think that solves everything.

It doesn’t.

The Texas Workforce Commission looks at reality, not paperwork. They ask questions like:

• Do you control when and how the helper works?
• Does the helper work only for you, or does he have other plumbing clients?
• Do you provide the tools, or does he bring his own?
• Can he make a profit or lose money on the job, or does he just get paid by the hour?

For a plumber with one regular helper, the answers almost always point to employee status. You tell him where to show up. You tell him what to fix. He uses your tools. He doesn’t advertise plumbing services to the public. He works for you and nobody else.

That’s an employee under Texas law, regardless of what the 1099 says.

---

What a Lawsuit Actually Looks Like

Without workers’ comp, your helper’s injury becomes a personal injury lawsuit against you.

Let’s say your helper falls off a ladder while running pipe. Breaks his wrist. Needs surgery. Can’t work for three months.

With workers’ comp, his medical bills are paid. He gets income benefits while recovering. You don’t get sued.

Without workers’ comp, he sues you. And here’s what he can recover:

• Medical expenses
• Lost wages during recovery
• Lost future earning capacity
• Pain and suffering
• Mental anguish
• Physical impairment

Workers’ comp caps income benefits at 70% of wages and covers medical care. A jury is not bound by those caps.

One back injury. One fall. One surgery. That’s a six-figure lawsuit in Texas.

---

The Cost Breakdown

Workers’ comp for a plumber in Texas runs about $1.15 to $2.60 per $100 of payroll**. Some sources put contractor rates slightly higher, around **$2.80 to $4.00 per $100 depending on classification and experience.

Let’s use the more conservative range. Your helper makes $40,000 a year.

• At $1.15 per $100: $460/year
• At $2.60 per $100: $1,040/year

Monthly, that’s roughly $110 to $340 for a small crew.

Now compare that to one lawsuit. Even a moderate injury with emergency room visits, follow-up care, and a few weeks of lost wages can exceed $50,000. If it goes to trial and includes pain and suffering, it goes higher.

The premium is a business expense. The lawsuit is a business-ending event.

---

When You Can’t Skip It Even If You Want To

Texas gives you the option to go without coverage. But there are situations where you have no choice:

**Government contracts over $25,000.** If you take a plumbing job for a city, county, school district, or any government entity valued at $25,000 or more, you must provide workers’ comp for employees working on that project.

Commercial general contractors. Most property managers, developers, and general contractors won’t let a subcontractor on site without proof of workers’ comp. They don’t care what Texas law says. Their liability insurer says no coverage, no access.

Licensing requirements. Some municipalities and the state plumbing board require insurance as part of licensing or permits. Check your local requirements.

If you want to bid on commercial work or public projects, you’re buying workers’ comp anyway. The only question is whether you buy it before or after you lose a bid because you don’t have it.

---

What You’re Actually Buying

Workers’ comp isn’t just a check to an insurance company. It’s a legal shield.

When you carry coverage, your helper’s injury goes through the workers’ comp system. He gets medical care and income benefits. You get exclusive remedy protection — meaning he cannot sue you for the injury.

No pain and suffering. No mental anguish. No jury.

That’s what the premium buys.

---

The Real Question

Texas law says you don’t have to carry workers’ comp for one helper.

Texas law also says your helper can sue you for everything if he gets hurt.

The law gives you the choice. It doesn’t protect you from the consequence of choosing wrong.

For most Texas plumbers with one helper, the math is simple. Pay $500 to $1,600 a year. Keep the legal

• Texas Department of Insurance: https://www.tdi.texas.gov
• Texas Workforce Commission: https://www.twc.texas.gov
• Texas Mutual: https://www.texasmutual.com
• OSHA: https://www.osha.gov

FAQ