As an employer in Starkville, it is your duty to provide your employees with a safe and healthy work environment. Of course, even when all the proper safety protocols are being followed, accidental injuries and occupational illnesses sometimes occur. Workers’ compensation insurance is designed to protect you and your employees by covering the associated medical treatment and lost wages.
Some workers’ compensation insurance companies are better-suited than others to cover businesses in certain industries. If you are an employer in this city, a local independent insurance agent can help you find the best and most affordable coverage for your business. Find an insurance agent in Starkville to learn more.
Is Workers’ Compensation Insurance Required in Starkville?
Employers in Starkville must be in compliance with Mississippi state laws regarding workers’ compensation insurance. In this state, you are required to carry workers’ comp insurance if you employ at least five regular workers.
There are a few exceptions. It is not necessary to purchase coverage for:
- Domestic servants
- Farm and ranch laborers
- Employees of nonprofit fraternal, charitable, religious, or cultural organizations
- Independent contractors
- Federal employees
- Transportation and maritime workers who are covered by federal compensation laws
Failure to meet the state’s requirements for carrying coverage can result in fines up to $1,000, jail time, or both.
Coverage can be purchased through a commercial provider. Your business also has the option to self-insure if you can demonstrate a financial ability to do so and get approval from the state. Most small businesses in Mississippi purchase coverage through a commercial provider.
How Much Does Worker’s Comp Insurance Cost in Starkville, MS?
The cost of your workers’ compensation coverage will depend mainly on the types of work your employees do.
Each type of job is given a specific classification code, and rates for each class code are regulated by the Mississippi Insurance Department and the Mississippi Workers’ Compensation Administration (WCC) according to how likely it is that workers doing that job will suffer a significant injury.
Commercial insurers use these rates as a starting point and can raise or lower rates based on your company’s claims history and experience modification. Discounts are permitted up to 25%, so it pays to shop around for coverage.
The following are the average rates paid per every $100,000 in employee payroll for three of the top industries in Starkville, MS:
- Educational services: $1,015 a year
- Health care: $1,180 a year
- Accommodation & food services: $2,000 a year
Of course, these are average rates representing large industry umbrellas. Therefore, under the healthcare industry, it is likely to cost far less to insure a medical billing clerk than to cover a home health nurse. To find out how much it will cost you to purchase workers ’ compensation insurance for your employees, arrange a consultation with a local independent insurance agent.
Starkville Workers’ Compensation Pays for Medical Treatment
All employers are required by law to post a workers’ compensation notice at every worksite so that employees are aware of their rights and the procedures for getting compensation for injuries. If a worker is injured, they can begin the workers’ compensation claims process by reporting their injury to a supervisor.
Workers’ compensation is designed to cover all costs associated with treatment for work-related injuries and occupational illnesses. Employees should pay nothing out of pocket. This coverage includes all related medical expenses, such as prescribed medications, devices like crutches or slings when needed, and physical therapy.
Workers’ compensation insurance can also reimburse employees for their mileage to and from medical appointments. Reimbursement rates are updated annually. As of January 1, 2020, the reimbursement rate was $0.575 per mile.
Starkville Workers’ Compensation Insurance Provides Disability Coverage
Disability coverage is designed to cover a large portion of an employee’s lost wages if they must take more than five consecutive workdays off in order to recuperate. There are different types of disability:
- Total temporary disability: This is when an employee is temporarily unable to work at all while recuperating from an injury or occupational illness.
- Partial temporary disability: This is when an employee is approved only for light-duty or part-time work while recovering from an injury or occupational illness.
- Total permanent disability: This is when an employee's injury is so severe that the injured employee is and will remain unable to work in any capacity.
- Partial permanent disability: This is when an employee is injured in such a way that they must get a job in a different line of work in order to continue to earn money.
For both temporary and permanent disability, workers’ compensation insurance can pay a bi-weekly benefit of two-thirds of the employee’s average weekly wages. This benefit cannot exceed the designated maximum payment, which as of January 1, 2020, is $505.43 per week. Maximum benefit amounts are updated annually by the MS Workers’ Compensation Commission.
Disability benefits can be paid for up to 450 weeks, but cannot exceed the designated disability maximum, which is currently set at $227,443.50.
Starkville Workers’ Compensation Covers Fatal Work Injuries
Tragically, workers sometimes suffer fatal injuries on the job. These accidental deaths are extremely hard on the employee’s loved ones. Workers’ compensation insurance seeks to ease the burden on surviving family members by providing them with some financial compensation.
If a work injury or occupation illness results in death, workers’ compensation can cover up to $5,000 of the employee’s burial costs. Additionally, it will pay an immediate lump-sum payment of $1,000 to the employee’s spouse. Thereafter, the employee’s spouse and dependents can collect bi-weekly benefits of two-thirds of the deceased employees' average wage for up to 450 weeks.
Learn more about workers’ compensation death benefits by talking with a local insurance agent.
Find the Best Workers’ Compensation Insurance in Starkville, MS
If you are an employer in Starkville and you are looking for the best workers’ compensation insurance for your business, a local independent insurance agent can help. These agents can match you up with an insurance company that specializes in covering businesses like yours. Your agent can also ensure that you are getting your coverage at a competitive price by comparing customized quotes.
Discover the many benefits of working with a local, independent insurance professional. Contact an insurance agent with an office in Starkville to get started.
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