Buying workers’ compensation for:


State Fund: No

Insurance Coverage Requirements: Workers’ Compensation is compulsory in Mississippi, waivers are not permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

All employers with 5 employees regularly employed are required to provide workers’ compensation insurance coverage. If the employer has less than 5 employees, workers’ compensation coverage is not mandatory but may be provided voluntarily by the employer.

Domestic and farm labor, and employees of non-profit fraternal, charitable, religious or cultural organizations are not covered under the Law unless coverage is provided voluntarily by the employer.

The Workers’ Compensation Law likewise does not apply to federal employees or certain transportation and maritime employments covered by federal compensation laws.

Independent contractors are ordinarily excluded from coverage although special protection is given to employees of subcontractors.

Factors that Impact Coverage

  • You are a sole proprietor, partner or member of an LLC: In Mississippi, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: Mississippi includes you in coverage, but you have the option to exclude yourself. You are an employee that owns 15% or more stock: You may exempt yourself from coverage.

Failure to Secure Compensation

The penalty for not maintaining current workers’ compensation coverage as required by law.

Proof of Coverage is Required

Every employer who has secured compensation under the provisions of this chapter shall keep "Notice of Coverage" forms which measure at least 8 1/2 inches by 11 inches, posted in a conspicuous place or places in and about his place or places of business, stating that such employer has secured the payment of compensation in accordance with the provisions of this chapter. Such notices shall contain the name and address of the carrier, if any, with whom the employer has secured payment of the compensation and the date of the expiration of the policy.

Independent Contractors

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties.

View 20 factors used by the IRS and our independent contractor questionnaire to determine whether you have enough control over a worker to be an employer.

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.