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Workers Compensation Insurance
Workers compensation insurance covers medical expenses, rehabilitation costs, and lost wages for employees who are injured or become ill at work. It’s required in most states, including Mississippi, and is often one of the most expensive types of insurance for employers. But don’t worry—we’ll guide you through everything you need to know about workers compensation in Mississippi.
Who Needs Workers Compensation in Mississippi?
The short answer—every business does. Many business owners believe their employees are independent contractors because they receive 1099s instead of W-2s, but that’s not what matters. What matters is the nature of the work. If the worker only performs this type of work for you, or if you have control over how and when they do their job, you likely need workers compensation coverage.
Workers Compensation Insurance Requirements
In Mississippi, businesses with five or more employees are required to have workers compensation insurance. Some states, like California, require it even if you have just one employee. Regardless of state requirements, businesses are responsible for covering medical and disability expenses for any employee injured on the job. If there’s a dispute about whether a worker is an employee, the Department of Labor will make a determination after an injury occurs.
What is an e-Mod Factor?
The e-Mod factor is a rating that reflects your company’s risk level based on workers compensation premiums and claims. It’s used to compare your company to others in your industry and location. While much of this calculation is based on data, business owners can control two key factors: premiums and claims. Keeping these low can positively impact your e-Mod factor.
Costs of Workers Comp Claims
Managing workers comp costs is about more than just buying insurance. It involves actively improving workplace safety. The average cost of a workers comp claim is $40,051, according to the National Safety Council. In addition to direct costs like medical expenses and lost wages, claims can negatively affect your company’s experience modification (e-Mod) and increase your premiums for the next three years.
Average Cost Breakdown
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All Claims Average: $40,051
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Motor Vehicle Accidents: $78,293
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Falls/Slips: $46,592
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Struck By: $36,979
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Strains: $33,545
Reducing Insurance Costs with a Strong Safety Culture
Developing a proactive workplace safety culture can help reduce workplace injuries and lower workers compensation costs. Here are some ways to improve safety in your business:
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Establish a safety program with training, incentives, and commitment from all levels of management and staff.
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Be selective in hiring by conducting background checks, verifying references, and ensuring candidates value safety.
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Reduce human error by requiring employees to demonstrate proficiency before performing tasks independently.
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Prevent repeat accidents by investigating every injury and near-miss to identify and correct causes.
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Prepare for emergencies by testing emergency response systems and ensuring all employees know what to do in a crisis.
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Create a distracted driving policy to reduce accidents. Texting while driving is extremely dangerous, and all employees should understand the risks.
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Enforce safety rules with corrective measures for non-compliance.
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Train supervisors in-house so they’re familiar with your specific work environment and safety standards.
Where Do I Start?
Finding the right workers compensation insurance in Mississippi doesn’t have to be complicated. We’ll help you assess your risks and tailor a policy that protects your business and your employees. Let’s get started safeguarding your tea
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