Mississippi workers’ comp 101
As a Mississippi small business owner, do you need to maintain workers’ comp insurance?
If your goal is to start a business in Mississippi, you’ll want to ensure you have the proper processes in place to encourage success. For instance, before you start selling services or products to customers, you’ll need to set the foundation for your company. These building blocks include sales and marketing strategies, accounting, and operations.
Along with these building blocks, you’ll also want to ensure you have the proper protection for your company and employees — this means purchasing small business insurance products, including workers’ comp and general liability.
In the state of Mississippi, companies that employ at least five full-time employees must obtain workers’ compensation insurance. This coverage not only protects the business but also covers the medical expenses and potential disability benefits of an injured employee.
For owners who haven’t had experience with workers’ compensation in the past, we have created a helpful guide to get you started.
10 important workers’ compensation insurance facts for Mississippi entrepreneurs
- Only companies with at least five full-time employees are required to maintain an active workers’ compensation policy
- Workers’ comp insurance will cover any injury or illness as long as it’s a result of the work an employee was doing for the company
- In Mississippi, employees are covered under workers’ compensation as early as their first day on the job
- Certain types of employees are considered exempt from the workers’ comp mandate. These groups include:
- Farm laborers
- Federal workers
- Domestic workers
- Nonprofit employees
- Sole proprietors and independent contractors are not required to have workers’ comp for themselves but will need to purchase a policy if they have more than five employees
- In addition to paying an employee’s medical expenses out-of-pocket, business owners could also face a $1,000 fine and jail time for not maintaining workers’ comp coverage
- If a death occurs as a result of a workplace injury, beneficiaries could receive benefits up to 450 weeks after the incident
- Should an employee opt for a workers’ comp settlement, it will need to be approved by the Mississippi Workers’ Compensation Commission
- Workers’ compensation insurance provides several benefits for injured employees, including:
- Medical expense coverage
- Ongoing care coverage
- Missed wages
- Funeral expenses
- Disability benefits
- Injured employees must notify their employees right away when an accident occurs. From that point, employers have 30 days to submit the incident to the Mississippi Workers’ Compensation Commission
Remember, every situation is different and state workers’ compensation laws are subject to change, so be sure to do your research and speak with a trusted advisor.
Please note that this content is intended for educational purposes only. As laws change regularly, refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about the basics of workers’ comp or check your current rate in 3 minutes.