Find the Best Workers' Compensation Insurance Options in Mississippi

There are about 257,000 small business owners in Mississippi. All Mississippi businesses need to consider having workers' compensation insurance in order to get reimbursed for lost wages and medical expenses after a worker gets injured or ill due to the job or workplace. Workers' comp is often mandatory for most businesses in the US. In Mississippi, workers' comp is mandatory for businesses with five or more employees, with only a few exceptions.

Fortunately, an independent insurance agent in Mississippi can help you find the right workers' comp policy for your business. They know exactly how much coverage to include in your policy based on your specific business. But first, here's an overview of Mississippi workers' comp requirements and more.

Mississippi Workers' Compensation Laws

Mississippi workers' compensation requirements can differ depending on a business's industry, but most companies in Mississippi with at least five employees must have workers' compensation insurance by state law. However, businesses without employees usually aren't required to carry coverage. This is the case for sole proprietors.

How Does Workers' Compensation Insurance Work in Mississippi?

Mississippi workers' compensation insurance offers payouts for employees who get ill or injured due to the workplace or job duties. Covered incidents can occur due to an unsafe job site, repeated work tasks, or due to the equipment or materials required on the job. Workers' comp can also replace a portion of an employee's regular wages if they must miss work for treatment or recovery. Labs, prescription medications, and doctor's or hospital visits can be covered.

Having workers' comp as a part of a Mississippi business insurance policy exempts your company from employee lawsuits related to covered incidents. Also, family members of these affected employees are exempt from suing the business. Having workers' comp insurance in Mississippi can protect your team and your business overall from possible financial losses that could otherwise be substantial.

Mississippi Workers' Compensation Exemptions

There are some exemptions to Mississippi workers' comp state law requirements. It's key to understand these exemptions, so you'll know whether your business needs coverage. Mississippi workers' comp exemptions include the following types of workers and industries:

  • Some maritime or transportation workers who are covered by federal compensation laws
  • Non-profit workers
  • Charitable organization workers
  • Domestic laborers
  • Federal employees
  • Farm laborers
  • Religious or cultural organization workers
  • Independent contractors

A Mississippi independent insurance agent can help determine if your business is required by state law to have workers' comp and how much.

Do Independent Contractors Need Workers’ Comp Coverage?

Mississippi state law requires businesses with five or more employees to have workers' comp. Also, by state law, there are a couple of exceptions to this rule. Independent contractors are one of these exceptions and are not required to be covered by workers' comp.

Independent contractors aren't required by Mississippi state law to be covered by workers' comp, but they can choose to get coverage if they wish. If you work as an independent contractor in Mississippi, you don't have to worry about workers' comp requirements or possible resulting penalties from not having coverage, but you may still want to get a policy to have that protection.

Do Mississippi Business Owners Need to Be Covered by Workers’ Compensation?

In certain cases, Mississippi business owners don't need to be covered by workers' comp. These include sole proprietors and business owners who are part of a partnership. Also, corporate officers who own at least 15% of corporate stock are exempt from coverage laws.

Having workers' comp coverage can help you save potentially thousands of dollars or more, even if you're not required to have it. Considering that just one workplace incident could result in the need for costly medical treatment and time out of work, you may still wish to get coverage to be on the safe side. Without workers' comp, you could have to pay these costs out of your own pocket, which could result in a huge loss for your business.

What Does Mississippi Workers' Compensation Cover?

Mississippi workers' comp reimburses many of the potential costs related to covered incidents of employee injuries or illnesses. Covered costs can include doctor's visits, hospital stays, medications, treatments, etc. Many expenses can result from one employee's injury or illness. Workers' comp can also pay a portion of an affected employee's regular wages while they're out of work to recover or get treatment.

Mississippi workers' comp can also provide compensation for funeral costs if a tragic incident results in an employee's death. In turn, having coverage exempts a business from employee lawsuits for covered incidents. The affected employee's family members cannot sue the business either if workers' comp was available. So, having workers' comp is a great way to help safeguard your business against serious incidents in a number of ways.

Here's a further breakdown of what workers' comp covers in Mississippi:

  • Death benefits: Workers' comp can also help pay death benefits for employees who die due to a covered incident. The death benefits are most often paid to an employee's surviving dependent family members or spouse.
  • Funeral costs: Workers' comp can even help cover funeral costs for deceased employees due to a covered incident. Reimbursement can apply to burial costs, coffins, and more.
  • Medical expenses: Workers' comp can help pay for medical expenses after covered incidents, including prescription medications. For example, if an employee needs a prescription for chronic pain due to their job tasks, workers' comp can pay for it.
  • Disability benefits: Workers' comp can also help pay for disability benefits, including temporary total disability benefits, permanent partial disability benefits, and permanent total disability benefits. If an employee qualifies for disability benefits due to a workplace incident, workers' comp can help cover these costs.
  • Ongoing care: Workers' comp can help pay for required ongoing care costs to continue treating a covered injury or illness. For example, if a worker needs physical therapy due to a workplace injury, this coverage can help pay for that cost.
  • Time off during recovery: Workers' comp can help pay to replace some of an employee's wages while they take time off work to recover from a covered incident. For example, if an employee needs to stay at the hospital for two weeks after surgery due to a workplace incident, workers' comp can help continue some of the wages they would've made working during that time.

A Mississippi independent insurance agent can help review your policy's coverage in full with you.

How Much Does Workers’ Compensation Insurance Cost in Mississippi?

The average cost of workers' compensation insurance in Mississippi is $86 per month or $1,032 per year. Keep in mind that the cost of workers' comp insurance can vary based on many factors. The number of employees your company has and its annual payroll heavily influence the cost of your workers' comp policy.

The location and industry of your business can also impact your workers' comp costs. Some industries come with an inherently higher risk level, including those in the construction industry and the trucking industry, so insurance companies charge higher premiums for workers' comp in these industries. Additionally, your business's previous claims history and the limits applied to coverage influence the cost of your workers' comp.

National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

How Can Mississippi Business Owners Save Money on Workers’ Comp?

Mississippi business owners have options to save money on workers' comp coverage. There's a "pay-as-you-go" payment option that offers a nice benefit of a low upfront premium. This option also offers the ability to buy coverage based on actual payroll rather than projected or estimated payroll, which can help save a lot of money on premiums. Another tip to save on workers' comp coverage is to hire seasonal or casual employees

Sending proof to your insurance company that your business completed a safety program can also help bring down the cost of your workers' comp. Insurers like to see that your company has taken measures to reduce the risk of workplace incidents that would result in claims. Because of this, requiring your employees to complete safety training is also a way you could save money on workers' comp. 

What Are the Penalties for Not Having Workers' Comp in Mississippi?

Businesses in Mississippi that don't comply with state law for workers' comp can face harsh penalties like fines or worse. Business owners can be convicted of a misdemeanor and a fine of up to $1,000 and/or up to a year in prison if they fail to provide workers' comp. Mississippi's Workers' Comp Commission may also fine businesses an additional $10,000.

Not having workers' comp in Mississippi makes a business vulnerable to many types of potentially huge financial losses. It's a wise decision to carry coverage at all times to help avoid these penalties. Not doing so could end up being too costly for your business to manage.

How to Buy Workers' Compensation Insurance in Mississippi

Mississippi provides a couple of options for buying workers' compensation. The first option is to buy coverage via the voluntary market. A Mississippi business owner can also choose to self-insure their company if they qualify. Another option is for a business owner to buy workers' comp online, which is often a fast and easy way to obtain coverage.

However, the overall easiest method of obtaining workers' comp in Mississippi is by working with a local independent insurance agent. These agents can shop and compare policies from many different Mississippi insurers for you. They'll get you matched to a policy with the best blend of coverage and cost.

Best Workers' Compensation Insurance Companies in Mississippi

Workers' comp is available from many different insurance companies in Mississippi. Since you want your business to have the best coverage around, you don't want to waste time searching through endless options. That's why we put together a list of some of the best options for workers' comp in Mississippi for you. Get started by checking out these top-quality insurance companies.

  • The Hanover: The Hanover got its start way back in 1852 and has outstanding AM Best and Better Business Bureau (BBB) ratings. The insurance company also offers 24/7 claims reporting. 
  • Progressive: Progressive has been around for decades and has an excellent financial strength rating from AM Best. The carrier also offers 24/7/365 customer service.
  • Travelers: Travelers is another established carrier with excellent customer feedback. Travelers is known for affordable rates, many discount and endorsement options, and strong financial strength.
  • Nationwide: Nationwide is also a well-established carrier with an outstanding reputation thanks to its outstanding BBB and AM Best ratings. The carrier also offers 24/7 claims support. 
  • Liberty Mutual: Liberty Mutual is a Fortune 500 company with a reputation for providing quality service and coverage. The carrier also has outstanding AM Best and BBB ratings and provides 24/7 claims reporting.

A Mississippi independent insurance agent can help you find the workers' comp your business needs from one of these outstanding carriers.

What Are the Best Workers' Compensation Companies in Mississippi?

Top Workers' Compensation Insurance CompaniesStar Rating
5 star rating
5 star rating
5 star rating
5 star rating
Liberty Mutual
4.5/5 star rating

FAQs: Workers' Compensation in Mississippi

Mississippi workers' compensation covers incidents of injury or illness to employees. These incidents are covered if they're caused by the work environment, tools, or equipment used for the job, or job tasks. 

The average cost of workers' comp in Mississippi is currently $86 per month. This cost can vary due to many factors, though, such as the number of employees your business has.

Yes. In Mississippi, workers' compensation is mandated for businesses with five or more employees. If your business employs fewer than five workers, you're not mandated by the state to have coverage, although many still choose to do so to avoid possible financial losses. 

Mississippi workers' compensation insurance covers medical expenses and a portion of lost wages for an employee who gets injured or ill as a result of the job. Medications, doctor's visits, etc., are covered by workers' comp.

Not every claim is covered under your Mississippi workers' compensation policy. Some restrictions apply, and it's key to understand what those are before filing an unnecessary claim. Here are some exclusions under your Mississippi workers' compensation insurance:

  • Intentional injuries or illnesses
  • Injuries or illnesses sustained outside of work
  • Injuries or illnesses sustained while behaving negligently
  • Injuries or illnesses sustained under the influence of drugs or alcohol

Some entities may request evidence of workers' compensation insurance, among other business policies. This is known as a Certificate of Insurance, and it provides the limits, expiration dates, and agent signature on your behalf. You can obtain a certificate from your Mississippi independent insurance agent or the insurance company you got coverage through for no additional fee. 

A Mississippi independent insurance agent can help you find workers' compensation coverage for an affordable price. These agents are free to shop and compare policies and quotes from a number of different carriers. They'll get you matched to a policy that offers the best blend of coverage and cost.

No, workers' comp isn't taxable in Mississippi. The benefits provided by Mississippi workers' comp are tax-free.

The Mississippi industries with the most fatal occupational injuries include:

  1. Construction
  2. Transportation and warehousing
  3. Manufacturing
  4. Crop farming
  5. Landscaping

The most reported fatal occupational injuries in Mississippi include:

  1. Violence and other injuries by persons or animals
  2. Transportation incidents
  3. Fires
  4. Falls, slips, and trips
  5. Exposure to harmful substances or environments
  6. Contact with objects and equipment
  7. Overexertion and bodily reaction

The statute of limitations for workers' comp in Mississippi is two years. If an incident gets reported after this period is over, it may not have to be covered by workers' comp.

If you are a sole proprietor, an independent contractor, or in a partnership that owns a business, you don't have to be covered by workers' comp in Mississippi. Otherwise, if your business has five or more employees, you'll need to cover all these workers with a policy.