There are nearly 59,000 employers in the state of Mississippi, and many of them are required to carry workers’ compensation insurance. This coverage is designed to cover the various expenses related to workplace injuries and occupational illnesses so that your employees and your business can avoid large financial losses. Local independent insurance agents can help you find the best and most affordable workers’ compensation policy to cover your Mississippi business. Find an insurance agent near you to learn more.
Do All Mississippi Businesses Need to Have Workers’ Compensation Insurance?
The state of Mississippi mandates that all businesses with at least five regular employees must have workers’ compensation insurance. There are a few exceptions. It is not necessary to purchase coverage for sole proprietors, corporate officers or partners, though you may cover these individuals if you want to. If these individuals choose not to be covered, they will be included in your total employee count. It is also not necessary to purchase coverage for domestic or farm laborers or for independent contractors. If you are uncertain if your business is required to purchase coverage, you can consult a local independent insurance agent.
How Much Does Workers' Compensation Insurance Cost in Mississippi?
The good news for Mississippi employers is that although rates for coverage in this state have increased over the last few years, they are still among the lowest in the country. Your cost for coverage will be based mainly on the types of work your employees do and your company’s overall payroll. The more likely it is that your employees will be hurt, the higher your costs will be. Mississippi is an NCCI state. Every job is assigned a specific classification code, and coverage rates for each class code are regulated by the Mississippi Insurance Department and the Mississippi Worker's Compensation Commission.
Commercial insurance providers must comply with the state-issued rates for coverage, but they are permitted to offer discounts and incentives at their discretion and in accordance with each business’s experience modification. That is why comparing quotes from competing insurance companies can prove beneficial. Let’s take a look at the average rates paid per every $100,000 in employee payroll for some common jobs in the state of Mississippi:
- Roofing contractors: $16,475 per year
- Tree trimmers and removers: $12,465
- Landscapers: $6,175 per year
- Fast-food workers: $1,545 per year
- Clerical/office workers: $265 per year
As you can see, it costs far more to insure workers who have a high risk of injury (such as those who work on rooftops) than to cover workers who very rarely suffer serious injuries on the job (such as those in office settings). For help obtaining actual, customized quotes for your particular business, contact a local independent insurance agent.
What Does Mississippi Workers’ Compensation Insurance Cover?
Workers’ compensation insurance (sometimes referred to as “workman’s comp”) is designed to cover the costs associated with on-the-job injuries and occupational illnesses. You can expect your policy to provide the following coverage:
- Medical treatment: Workers’ comp is designed to cover all reasonable and necessary medical care related to work-related illnesses and injuries, as long as the treatment is authorized. This includes coverage for doctor visits, hospital stays, physical therapy, and any necessary prescription medications.
- Mileage reimbursement: In Mississippi, injured workers may obtain reimbursement for miles driven to and from doctor visits and other medical appointments that are associated with their work-related injury.
- Temporary disability: Employees who need to take time off work to recuperate from a work-related injury are eligible for temporary disability compensation. The first seven days of missed work are not covered unless the injured employee must take more than six weeks off in total. Workers’ compensation will pay injured workers a weekly benefit of 2/3 of their average weekly wages until they are able to return to work or for 450 weeks, whichever is shorter.
- Permanent total disability: Serious injuries may leave workers unable to ever return to work of any kind. In this case, workers’ compensation insurance can provide weekly compensation in an amount of 2/3 of the worker’s previously earned wages for as long as the disability continues.
- Permanent partial disability: This is designed for workers who have suffered a permanent impairment but who are nevertheless still able to hold a job of some kind. In the case of a serious disfigurement, the injured employee would be entitled to a one-time lump sum payment of $5,000. Additionally, injured Mississippi workers can receive one of two types of permanent partial disability awards:
- Scheduled: Scheduled permanent partial disability awards pay out compensation in the amount of 2/3 of the employee’s previously earned wages for a scheduled period. This period is based on the injury’s impairment rating.
- Unscheduled: Unscheduled permanent partial disability awards are designed for those who have returned to work but have a decreased earning capacity. This compensates the injured employee 2/3 of the difference between their new wages and their previously earned wages. This award is payable for a maximum of 450 weeks.
- Survivor benefits: In the unfortunate event that a work-related injury or illness results in death, workers’ compensation will contribute up to $5,000 toward the employee’s burial expenses. Additionally, it will pay out compensation in the form of weekly death benefits to the deceased employee’s spouse, children, or other dependents.
You can learn more about each of these benefits by talking to a local independent agent.
Find the Best Workers’ Compensation Insurance in Mississippi
When you are searching for a suitable workers’ compensation policy to cover your Mississippi business, an independent agent can help. These agents can work with several different insurance providers to obtain customized quotes for coverage that you can review and compare together. That way, you can be certain that you are getting your coverage at a competitive rate. Discover how easy it can be to find the right workers’ compensation policy for your business.
Contact one of the more than 200 independent insurance agents in Mississippi to get started.