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Mississippi workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Mississippi employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Mandated by Mississippi state law, workers’ compensation insurance is designed to protect employees who are injured or become ill on the job by providing medical care, rehabilitation services, and disability benefits. It also protects employers from potential lawsuits filed by injured workers. Whether the injury is minor or serious, if it occurs in the workplace, it is covered by Mississippi workers’ compensation laws.
Now that we understand the benefits of having a policy, let’s take a closer look at which employers are required to have it.
Any employer in Mississippi with five (5) or more employees is required to carry workers’ compensation insurance. If you have fewer than five employees, coverage is optional — but still a wise move to protect your business from potential liability.
Employers who are required to carry coverage must display a Notice of Coverage form in a visible location at the worksite. This notice should include the name of the insurance carrier, claims representative, and a company contact in the event of an injury.
Yes. Certain businesses and worker categories are exempt from the state’s workers’ compensation requirements, including:
Domestic workers
Farm laborers
Nonprofit fraternal, religious, charitable, or cultural organizations
Federal employees
Transportation or maritime workers covered by federal laws
Sole proprietors
Independent contractors
Even if you fall into one of these categories, you may still elect to voluntarily purchase workers’ compensation insurance for added protection.
Mississippi workers’ compensation insurance generally provides coverage for occupational illnesses and work-related injuries — including repetitive motion and chronic conditions. Coverage includes:
Medical Benefits
Doctor and hospital services
Nursing care, medications, physical therapy
Medical devices (e.g., crutches, braces)
Vocational rehabilitation when needed
Mileage reimbursement for travel to medical appointments
Wage Loss Benefits
Temporary disability: 2/3 of the employee’s average weekly wage
Permanent disability: Additional compensation if the employee cannot return to work
Death Benefits
Payments to surviving dependents for up to 450 weeks
Funeral expenses
Lump-sum payment to the surviving spouse
Employers can purchase workers’ compensation insurance through any private insurer licensed to operate in Mississippi. Premium rates are based on:
Business size
Number of employees
Industry classification
History of claims or workplace injuries
If you’re considered high-risk or cannot obtain coverage in the open market, you can apply through Mississippi’s Assigned Risk Pool, managed by the National Council on Compensation Insurance (NCCI).
You also have the option to self-insure. To qualify, you must submit an application along with:
Audited financial statements
Loss run and actuarial reserve analyses from the last three years
Most recent workplace safety report
Failing to comply with state laws can lead to serious consequences, including:
Fines up to $1,000
Up to one year in jail
Personal liability for all medical bills resulting from a work-related injury
Employees must report any workplace illness or injury to their supervisor or designated contact immediately. Employers are responsible for filing the First Report of Injury or Illness with the Mississippi Workers’ Compensation Commission and notifying their insurer.
Employees must report their injury within 30 days. If they fail to file a claim within two years, they forfeit their right to compensation.
Employers may designate the initial treating physician or facility. However, the injured employee retains the right to select their own doctor for primary care and may follow referrals to specialists.
If the employee is found disabled by their personal physician, the employer may request an evaluation by a physician of their choice.
For more information, visit the Mississippi Workers’ Compensation Commission website or contact them directly at (601) 987-4200. Additional helpful links include:
Having a workers’ compensation policy is a smart business decision. It protects employers from costly lawsuits and noncompliance penalties, while giving workers peace of mind knowing they’ll be taken care of after an injury or illness on the job.
If you have questions or need help setting up a policy, the team at Beyond is here to assist.
