Mississippi workers’ compensation Insurance is a must-have for most employers

How does workers’ compensation coverage protect Mississippi employers and employees?

Mandated by Mississippi state law, workers’ compensation insurance is designed to protect employees that are injured on the job by providing medical care, rehabilitation services, and disability benefits when an injury or illness occurs. But workers’ compensation also protects employers from potential lawsuits brought by injured employees. Whether the injury is slight or serious, if it occurs in the workplace, it’s covered by Mississippi workers’ compensation laws.

Now that we better understand some of the benefits of habving a policy, let’s find out more about which employers need to carry it.

What Mississippi businesses are required to have workers’ compensation?

To put it simply, any Mississippi employer with five (5) or more employees is required to provide workers’ compensation insurance coverage. If an employer has less than five employees, coverage is voluntary, but it can is still be a good idea, since it can protect you from liability should a work-place related injury occur.

Businesses required to have workers’ compensation coverage must display a Notice of Coverage form in a conspicuous location at their place of business. The form should include the name of the insurance carrier, claims offer, and the employer contact should an accident or injury occur.

Are there any exemptions?

There are some exemptions from Mississippi’s workers’ compensation regulations. Those exemptions include:

• Domestic workers
• Farm laborers
• Non-profit fraternal, charitable, religious, or cultural organizations
• Federal employees
• Transportation or maritime workers covered by federal compensation laws
• Sole proprietors
• Independent contractors

It’s important to note that though the above categories are exempt from Mississippi workers’ compensation laws, any of the employers above have the option to voluntarily obtain workers’ compensation insurance for their employees.

Let’s talk next about what coverage generally provides employees who need to take advantage of it.

What does workers’ compensation cover?

Mississippi workers’ compensation insurance is designed to cover workplace-related illness and injuries including chronic or repetitive use injuries, and provides the following benefits to all covered employees:

Medical benefits

Medical benefits include all doctor and hospital services, nursing services, medication, physical therapy, and any additional medical apparatus that may be necessary such as crutches and other medical aid devices. Rehabilitation services may also be provided to an injured employee when deemed necessary, with vocational training available as well. In addition, mileage reimbursement for trips to medical facilities is also included in the medical benefits offered.

Wage loss benefits

If an employee is considered temporarily disabled and must miss time from work due to a work-related illness or injury, they are entitled to a wage loss benefit equal to two-thirds of their regular pay. If a physician finds the employee has reached their maximum level of improvement and still cannot perform their job, they are considered permanently disabled and provided with additional benefit payments.

Death benefits

Upon the death of an employee due to a work-related injury or illness, a death benefit is paid to the surviving spouse and/or dependents, with benefits paid for up to 450 weeks after the employee’s death. In addition, funeral expenses and a lump-sum payment to a surviving spouse will be paid immediately.

How do Mississippi employers purchase workers’ comp insurance?

Workers’ compensation insurance can be purchased from any private insurance company licensed to sell workers’ compensation insurance in Mississippi. Premiums for Mississippi businesses depend on several factors including:

• The size of the business
• The number of employees
• The type of work the employees routinely perform
• Claims or accident history

Employers that do not qualify to purchase workers’ compensation insurance from a private insurance company or are considered high-risk can purchase insurance from Mississippi’s Assigned Risk Pool which is administered by the National Council On Compensation Insurance (NCCI).

Mississippi businesses can also elect to self-insure by filling out the Employer’s Application for the Privilege of Paying Compensation Provided in the Mississippi Workers’ Compensation Act as a Self-Insurer. In addition, those applying to be self-insured must submit audited financial statements, loss run analysis and actuarial reserve analysis for the past three years, and their most recent safety report.

What are the penalties for not having workers’ compensation coverage in Mississippi?

Bad news is never something we want to share, but employers that are found to be in violation of the state mandate may face penalties including a fine of up to $1,000, one year in jail, or both. In addition, any employer not covered by workers’ compensation insurance may be responsible for any medical bills that their employee sustains by way of a work-related injury.

How are workplace-related injuries reported?

If an injury occurs, an employee is required to immediately notify their supervisor or the designated contact person. Once an accident or illness is reported, the employer is responsible for filing the First Report of Injury or Illness with the Mississippi Workers’ Compensation Commission, with notification of injury also provided to the insurance company or their contracted self-insured fund.

Employees are required to provide notification of injury or illness within 30 days of the event, or the claim may be delayed. If no compensation is received by the employee and no application for benefits filed within two years of the injury or illness, employees lose the right to any type of future compensation.

Can employees use their own physician for treatment?

The employer is responsible for selecting the appropriate physicians and hospitals for treatment. However, the injured or ill employee has the right to select their own physician for primary treatment, which includes any subsequent referrals to specialists as determined by their primary physician.

If an employee is found to be temporarily or permanently disabled by their personal physician, the employer has the right to request the employee be examined by a physician of the employer’s choice.

More resources for Mississippi employers

For more information on Mississippi workers’ compensation requirements, visit the Mississippi Workers’ Compensation Commission’s website or contact them at 601-987-4200. The following are some additional resources that may be helpful for Mississippi employers.

• Compilation of Rules of the Mississippi Workers’ Compensation Commission
• Mississippi Workers’ Compensation (MWCC) Facts
• Workers compensation and related forms
• MWCC FAQs