Mississippi workers' compensation insurance

Every state has different requirements for workers’ compensation insurance. In Mississippi, all companies with five or more regularly employed workers must provide workers’ compensation insurance.

If you have fewer than five employees, workers’ comp coverage isn’t mandatory, but you can provide it voluntarily to provide coverage for workplace injuries and protect your business from liability.

In most cases, you have to include yourself in your company’s workers’ comp insurance plan. The exceptions are if:

• You’re a sole proprietor.
• You’re part of a partnership that owns or manages your firm.
• You are a corporate officer who owns 15% or more of corporate stock.

If any of those situations apply, you can still opt to participate in your firm’s workers’ comp policy. This is usually a wise decision since your health insurance provider could deny a claim for an injury related to your work, leaving you with expensive medical bills.

Members of a Mississippi limited liability company (LLC) are treated the same as sole proprietors and partnerships for workers’ compensation purposes.

Additionally, here's what your workers' comp policy won't cover:

• Injuries caused by intoxication, drugs, or company policy violations
• Injuries claimed after a firing or layoff
• Wages for a replacement worker
• Occupational Safety and Health Administration (OSHA) fines

Insurance providers use a specific formula for calculating workers' comp premiums:

To save money on workers' comp insurance, it's important to make sure you classify your employees correctly. Employees with desk jobs or other jobs with a low risk of injury cost less to insure. This also helps you avoid misclassification fines.

In some cases, small business owners can choose to buy pay-as-you-go workers' compensation. This type of workers' comp policy has a low upfront premium, and lets you make payments based on your actual payroll instead of an estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.

A ghost policy is a cheap option in some states, including Mississippi. A ghost policy is a workers' comp policy in name only. It provides no protection or medical benefits, but can fulfill contractual requirements for a workers' comp certificate at a reduced price.

Finally, a documented safety program can help lower workers' comp costs. A safer workplace means fewer accidents, which helps keep your premium low.

When an employee is injured on the job or develops an occupational disease and files their first report of injury, workers' compensation insurance will then go into effect and pay for their medical treatment. It also provides disability benefits of up to two-thirds of the employee's average weekly wage while they cannot work, after the five day waiting period.

Policies usually include employer's liability insurance, which can help cover legal expenses if an employee blames their employer for an injury. However, the exclusive remedy provision in most workers' comp policies prohibits employees from suing their employer if they accept workers' comp benefits.

Workers' compensation benefits for injured workers in Mississippi include:

• Medical benefits (all medical bills related to the injury, from emergency treatment to physical rehabilitation)
• Permanent partial disability (PPD) benefits
• Permanent total disability (PTD) benefits
• Temporary partial disability (TPD) benefits
• Temporary total disability (TTD) benefits
• Vocational training
• Death benefits

The Mississippi Workers' Compensation Act provides no-fault coverage. That means regardless of who was at fault for the injury, workers won't end up paying for medical services or lose out on wages due to impairment.

If you fail to offer workers’ comp insurance as mandated by state law, you may face penalties, including a fine of up to $1,000, up to a year in jail, or both. Corporate officers may be forced to pay for an injured employee’s workers’ comp benefits out of their own pockets.

If an employee dies as a result of a work-related injury or illness, the surviving spouse and certain dependents may be eligible for death benefits.

In Mississippi, an employer’s workers’ compensation insurer or assigned risk administrator pays benefits at least every 14 days. These benefits may continue for as long as 450 weeks after an employee’s job-related death.

Death benefits are based on a certain percentage of a deceased worker’s average weekly wage, subject to a weekly maximum determined by statute.

Also, an employer or its insurance provider must pay up to $5,000 for funeral expenses, as well as a $1,000 lump sum to the surviving spouse.

A workers’ compensation settlement is an agreement between parties to resolve a workers’ comp claim. This benefits both the employee and the employer. A settlement in a workers’ compensation claim is a full and final resolution.

Settlements aren’t mandatory for employees. However, if the worker has reached maximum medical recovery or will not need additional treatment, they can agree to accept a lump sum in exchange for closing the claim.

All settlements are subject to the approval of the Mississippi Workers’ Compensation Commission (MWCC). A licensed Mississippi attorney must be retained by the employer / carrier to prepare the proper paperwork and present the settlement to the commission.

In the state of Mississippi, employees are required to report workplace injuries within 30 days.

Regardless of whether notice was received, if no payment of compensation (other than medical treatment or burial expenses) is made and no application for benefits is filed with the commission within two years from the date of the injury or death, the right to compensation expires.

If you are ready to buy a workers' compensation policy, start a free application with Insureon to compare quotes from top-rated insurance carriers. A licensed insurance agent will help answer your questions and explain your coverage options. Once you find the right policy, you can usually begin coverage and get your certificate of insurance in less than 24 hours.