There are so many different opinions around here, that its really hard to tell what is the truth. Plus sorting through the info available is like looking for a piece of hay in a haystack. typical government language meant to employ more lawyers.
I read everything I can about the issue, and talk to anyone who might have any knowledge. The basic understanding I have is that you can exempt yourself, and don't have to buy wc if you have less than three employees. Except for the construction industry. In my county, Pressure washing is considered part of the construction industry. Go figure. Anyway, the exemption is intended for 'non-working' owners. How many of us are non-working?
If you are hurt and have WC you must go through your WC for any redress. If you do not carry WC, the homeowner can be sued for damages just like if the neighbor kid came and tripped on a tree root and was injured. It happens on your property, you're liable. The claimant may not win, but the suit will cost the HO time and aggravation if not money.
I have chosen to follow my county's licensing rules at considerable cost. many of my competitors do not. I pay for workers comp coverage on me and my employee. I use that to every advantage with the homeowner and on commercial bids. Time to raise the stakes with the hacks out there.