What is workers’ compensation insurance in Mississippi?

I own a small business in Mississippi. I currently have no employees, but my business is growing and I’m thinking of hiring several full-time workers. What is Mississippi workers’ compensation insurance? What does it cover, and how does it work?

When an employee gets injured on the job, Mississippi workers’ compensation insurance ensures that the injured worker gets medical care and income protection while he or she is unable to work. It is essentially a no-fault insurance plan mandated by the state and supervised by the Workers' Compensation Commission. 

Mississippi became the last state in the nation to enact a Workers’ Compensation Law in April 1948. Workers’ compensation insurance is paid for entirely by employers.

What does workers’ compensation insurance cover in Mississippi?

Mississippi workers’ compensation insurance pays for medical bills for injured or disabled workers. It also pays for lost wages if an employee cannot work while he or she recovers from the injury. In addition, Mississippi workers’ compensation insurance provides death benefits to a surviving spouse or dependents if an occupational injury leads to a worker’s death.

When an occupational injury or illness occurs, the worker should report it immediately to the supervisor or employer, who must then file a report with the Mississippi Workers' Compensation Commission. 

Medical benefits include payments for:

• Treatment by physicians, hospitals, and nursing services
• Medicine
• Physical therapy
• Mileage for travel to and from medical appointments
• Other related medical expenses

The insurance company pays the healthcare providers directly for their services, and employees have no out-of-pocket expenses like deductibles or copayments.

Disability benefits are payable directly to the employee. These benefits continue depending upon the extent of the injury and the amount of lost wages, but will continue for no more than 450 weeks. Disability benefits can equal as much as two-thirds of an employee's average weekly pay, and are tax-free.

How does workers’ compensation insurance work in Mississippi? 

The Mississippi workers’ compensation law ensures payment of certain medical expenses and lost wages to people who are injured at work. It is a no-fault system, which means that it pays injured workers regardless of who is at fault. 

Mississippi employers can purchase workers’ compensation insurance from private carriers, or they can get approval from the Workers’ Compensation Commission to self-insure. 

In Mississippi, all employers with five regular employees are required to have workers’ compensation coverage. If an employer has fewer than five employees, workers’ compensation coverage is not mandatory, but an employer can choose to provide it. 

Domestic laborers, farm laborers, and employees of non-profit fraternal, charitable, or cultural organizations are exempt from the Mississippi workers’ compensation laws. Volunteers and independent contractors are also exempt. 

The Mississippi Workers' Compensation Law likewise doesn’t apply to federal employees or certain transportation and maritime employees who are covered by federal workers’ compensation laws. 

Mississippi has a private workers’ compensation market. This means that Mississippi employers can purchase workers’ compensation insurance from any private insurance carrier or insurance agency that is licensed to sell or write it.