How Does Workers’ Comp Work in Mississippi?

An A-Z guide on everything you need to know before you purchase a Mississippi Workers' Comp Insurance Policy

Any business in Mississippi with five or more employees must carry workers’ compensation insurance. However, it’s not as clear-cut as you might assume. Only “regularly employed” workers qualify for workers’ compensation coverage. The state also exempts a broad range of other individuals.

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Who can be exempt?

Farm workers
Domestic workers
Charitable, religious or nonprofits organizations
Independent contractors
Sole proprietors
LLC members
Business partners

Is workers’ comp insurance required in Mississippi?

Like most other states, Mississippi does require that most businesses carry workers’ compensation insurance. However, unlike some states, Ole Miss only requires businesses with five or more “regularly employed” workers to carry this coverage.

That means very small businesses with four or fewer employees aren’t required to purchase workers’ comp policies.

Do self-employed professionals require workers’ comp insurance in Mississippi?

Under current MS law, self-employed professionals are not required to purchase workers’ comp. This includes a broad range of individuals, from various freelancers and gig workers to skilled professionals like electricians and plumbers who have no employees of their own.

Who’s exempt from Mississippi workers’ compensation insurance requirements?

There are plenty of exemptions. This includes sole proprietors, LLC members, and others, but it also includes those who aren’t “regularly employed”.

How much is workers’ comp coverage in Mississippi?

While workers’ compensation insurance will come at a cost, it does not have to be exorbitant. The average workers’ comp rate in Mississippi is $3.22 per $100 of payroll.

Your Mississippi workers’ comp rate will depend on the following factors:

The type of business you have
The size of your payroll
Your safety record
Claim history

You can learn more about Mississippi’s workers’ comp rates here.

workers comp policy cost

How can Mississippi small business owners save money on workers' comp?

Protecting your business and your employees is important, but it’s also essential to save money where you can. Just a few of the ways you can reduce your liability-related costs when it comes to workers’ comp insurance include:

Implementing a workplace safety program‍
Ensuring employees always follow OSHA safety practices
Verifying that your employees are correctly classified‍
Creating an alcohol and drug-free workplace policy‍
Apply dividends to your new policy after your annual workers’ comp audit

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How does workman’s comp work in MS?

The workers’ comp process in Mississippi follows the overall process in other states. First, you’ll need to purchase a policy, which will be based on your estimated annual payroll and employee classifications.

Next, you’ll pay your premium and your insurance coverage will go live. Any workplace accidents will be covered for a full year.

At the end of the policy’s term, you’ll be audited. This is done to ensure that you paid the correct price for your policy. If you overpaid, you’ll receive a refund for that portion. If you underpaid, you’ll be billed for the difference.

What does workers’ comp cover in Mississippi?

Workers who file a workers' comp claim in Mississippi can receive benefits for the following:

workers comp covers medical bills

Medical bills

workers comp covers lost wages

Lost Wages

workers comp pays death benefits

Death Benefits

Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.

How can I obtain workers’ comp insurance in Mississippi?

Businesses have three options for purchasing workers’ compensation insurance in Mississippi.

You can compare policies from insurance companies and then choose the one that fits your business best. Kickstand Insurance can give you an online quote in a few minutes.
Some businesses will find that many insurance companies won’t offer them a policy because of the high-risk nature of their business. These companies can turn to the state fund, administered by the National Council on Compensation Insurance.‍
Large firms may be able to self-insure. This means those companies will pay out of pocket for medical costs, lost wages, and other costs. However, these businesses must apply for approval with the Mississippi Workers’ Compensation Commission, prove their ability to pay, and be approved by the commission.

What are the penalties if I don’t have workers’ comp insurance in MS?

Mississippi takes failure to comply with state workers’ comp laws seriously. You could face a fine of up to $1,000, criminal charges leading to jail for a year, or both jail time and financial penalties.

The state may also require that your business pay for all of a worker’s related medical bills and lost pay.

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FAQS

What are MS workers’ comp death benefits?

In the event of death related to a workplace injury or work-related disease, Mississippi requires that policies pay benefits to the surviving spouse and qualifying dependents.

Payments must be made to the spouse at least every 14 days for up to 450 weeks after the employee’s death.

Policies must also include up to $5,000 for funeral expenses and a $1,000 lump sum to the employee’s surviving spouse.

How do workers’ comp settlements work in MS?

In some cases, an employee may choose to settle their case with the employer and insurance company. In this situation, the insurance company will offer a lump sum payment to the employee.

The employee will then waive their right to pursue further damages related to the particular claim. The state’s workers’ comp commission must approve all settlements.

What are the statutes of limitations on workers’ comp claims in MS?

All workplace injuries must be reported within 30 days. However, employees have two years to apply for benefits.

If no payments are made or no request for benefits is received by the end of that time, the employee’s rights expire.

How do I get a workers’ comp insurance policy with Kickstand Insurance?

Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!

Ready: Fill out an online form. It only takes 5 minutes!
Set: One of our agents will contact you to review the quote.
Go: You can get covered starting today!

Why use Kickstand to
get workers' comp insurance?

Speed + Service + Experts

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Unlike other online insta-quote systems,
here your quote is reviewed by experts

Why does it matter?

Avoid surprise bills at audit
Make sure all your employees are properly covered
Protect yourself from lawsuits

What do we check?

Business categorized correctly
Employees job roles
Special discount opportunities

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It’s time to get the coverage you need. Just complete our simple online form and we’ll get you a no-obligation quote and connect with one of our expert MS agents. It’s that simple!

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