Mississippi Workers' Comp
Here we cover the specific state laws and requirements for small business employers and their Mississippi Workers’ Comp Insurance obligations.
First, who needs to be covered by Workers’ Comp coverage? Second, where can you get it? Also, how much does it cost? All of this is covered by state law.
Additionally, are you headquartered or based in Mississippi, but have employees working, or transiting on the clock, to or through another state to perform work? Further, the Workers’ Compensation laws in THAT or THOSE states will also determine coverage requirements. Finally, if your employees are working in more than one state, you will need coverage in each state.
WorkersComp4SmallBusiness can help with just that.
Mississippi Workers Compensation Insurance
In the state of Mississippi, the method you use to insure your workers’ compensation liability is up to you and your small business. There are several options, with one or two being the most prevalent.
Workers' Compensation Requirements in Mississippi
If you regularly employ five (5) or more employees, full-time or part-time – including officers of a corporation of any single business – then Mississippi Workers’ Compensation statutes require you to have workers’ compensation insurance .
Small businesses with five (5) or more employees are required by Mississippi law to carry Workers’ Compensation Insurance. Employee’s coverage under Workers’ Comp begins with the start of employment without probationary period or any minimum salary level in order to be eligible.
Also, if you employ workers on-site in the construction, or assistance in construction, of new, single family detached residential dwellings, then you are required by Mississippi Workers’ Compensation statutes to have workers’ compensation coverage.
If an independent contractor, you might not be covered by the contracting firm’s workers’ comp coverage. You may very well need to provide proof of workers’ compensation coverage.
Also, if you are working for someone else as a contractor – not an employee – you will not be covered by their Mississippi Workers’ Comp coverage and may be required to provide them with proof you have your won coverage. Are you a independent contractor? Let’s look into that. And, if so, we can help get you that coverage.
It is important to remember that Workers’ Comp Insurance is not liability coverage. It insures you and your employees in the event of an occupational injury or illness. If you need coverage for liability for other purposes, we can help with that too.
Why Carry Workers Compensation Insurance?
- It is required by law;
- It remains the exclusive remedy for on-the-job injury and occupational disease;
- The possession of this valuable insurance coverage also provides you and your small business with limited civil liability;
- It avoids double compensation in the event of a claim; and
- Finally, you avoid significant penalties and fines for failing to have workers’ comp coverage.
Benefits of Having Workers' Comp to Small Business Employers and Employees
First, employees are guaranteed a “benefit certain” in the event they sustain an on-the-job injury or occupational disease.
Second, the small business employer pays for this insurance – another significant benefit to employees.
Finally, the employer enjoys “exclusive remedy” protection provisions of the Mississippi Workers’ Compensation laws. This states that an employee with a valid claim is ONLY entitled to the benefits provided by the statutes – thereby, limiting a small business’ employer liability.
Where to Buy Workers' Comp Insurance?
There are several starting points for workers’ compensation insurance in Mississippi. You may purchase workers’ compensation insurance from a commercial workers’ comp carrier approved to do business in Mississippi, you may secure coverage from one of a few self-insurance funds, or you may self-insure as an individual business – providing you qualify. The latter two options are very rare. The best option is to secure workers’ compensation insurance through a commercial carrier.
There are four (4) ways for a small business to meet their obligations under the Mississippi Workers’ Compensation laws:
- Commercial insurance via the “Voluntary or Private Market” – where you purchase an approved policy through an insurance company via WorkersComp4SmallBusiness. This is an ideal option for a small business employers with low to medium workers’ comp exposure or claims history. These approved policies are recognized by state courts, offered at a reasonable premium, and guaranteed by the Mississippi Insurance Guaranty Association. Further, with the assistance of WorkersComp4SmallBusiness, you also have the ability to shop the market for the best coverage at the most affordable premium.
– Commercial Insurance – the Assigned Risk Pool – allows small businesses to purchase insurance when insurance carriers in the voluntary market decline to offer you coverage due to high workers comp exposure or claims history – also known as the “Involuntary Market.” This option is best suited for the small business employer with medium to high workers compensation exposure and/or claims history. This type of coverage is also an approved policy recognized by the state courts and guaranteed by the Mississippi Insurance Guaranty Association. It should be noted, this type coverage comes at higher cost, without a choice in insurance carrier and you are still subject to rate increases.
To use this insurance option, you must have decline letters from two (2) insurance carriers – proof to the NCCI Assigned Risk Pool via WorkersComp4SmallBusiness.com
Group Self-Insurance – is available to small business employers where the employer enters into a common fund where employers by mutual agreement have pooled their collective liabilities for the purpose providing workers comp coverage to their employees. Candidate businesses must meet underwriting requirements set forth by the fund and meet requirements qualifying for self-insurance.
This coverage is approved, regulated by the state of Mississippi Workers’ Compensation Commission and is recognized by the state courts. Further, it often offers reasonable rates and a choice of available funds. However, the Fund determines your renewability, subject to possible rate increases, and if the Fund becomes insolvent you can be assessed for outstanding obligations of the Fund – called “joint & several liability.” This option can be looked into by WorkersComp4SmallBusiness on your behalf or you may contact NCCI directly, if you prefer.
Individual Self-Insurance – is the option where you actually become the insurer – a very serious long-term commitment requiring the larger employer to meet significant financial requirements. An employer must provide audited financial statements, minimum $5 million net worth, current asset to liability ratio of 1.0 or greater, and a positive net income.
This type coverage is also recognized by state courts, but long-term liability from providing lifetime medical benefits mandated by law renders this option out of the question except for the largest of financially viable employers.
Subcontractors / Independent Contractors
Most subcontractors and independent contractors are sole proprietors or partnerships. Unless they are an employee, they will not be covered by your insurance policy, and they may need proof of workers comp insurance.
Are they an independent contractor or an employee? Great Question. Let’s get some idea.
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Obtaining Workers Comp Insurance for Your Small Business
Mississippi has its private, voluntary and involuntary markets, meaning employers may purchase a workers comp policy from any insurance carrier or broker licensed to write workers compensation in the state.
Request a quote from WorkersComp4SmallBusiness.com
Mississippi Coverage and Rates
NCCI, the National Council on Compensation Insurance, is used by most states to collect workforce injury data and make recommendations regarding insurance rates. NCCI administers workers compensation residual market services, offering coverage to businesses that who are unable to find coverage through private insurers. NCCI also recommends rates in Mississippi.
When accepted, insurance companies must use these rates as a baseline for premiums. The type of industry, total covered payroll, claims history and other individual details all influence total premiums.
Your business must comply with the state where your employees perform work – not necessarily where the business was founded or is based.
If your business operates in multiple states, or employees travel across state lines to work, you may need to modify your policy to guarantee coverage.
Mississippi Work Comp Resources
Workers’ compensation insurance coverage in Mississippi is regulated by the Mississippi Workers’ Compensation Commission in Jackson at (601) 987-4200.
Mississippi workers’ compensation rates are determined through the NCCI (National Council on Compensation Insurance). Additionally, Mississippi has a high-risk pool for those businesses having trouble securing coverage – the Mississippi Assigned Risk Pool.
Areas We Serve in Mississippi
- Jackson
- Gulfport
- Southaven
- Biloxi
- Hattiesburg
- Olive Branch
- Tupelo
- Meridian
- Greenville
- Horn Lake
- Pearl
- Oxford
- Madison
- Starkville
- Clinton
- Brandon
- Ridgeland
- Columbus
- Vicksburg
- Pascagoula
- Gautier
- Laurel
- Ocean Springs
- Hernando
- Long Beach
- Natchez
- Bay St. Louis
- Corinth
- Clarksdale
- McComb
- Greenwood
- Grenada
- Canton
- Cleveland
