Horn Lake Workers 'Compensation Insurance
(Everything you need to know - and more)
Written by
Christina is a freelance writer and licensed insurance agent. She has worked in many facets of the insurance industry, from entry-level assistant to account manager/sales rep to vice president of operations.
Horn Lake offers plenty of fun for locals and visitors alike, including festivals, parks, restaurants, and a dirt race track. When playtime is over, most Horn Lake residents go to work in the construction, transportation, health care, and food services industries. Whatever the type of business, there’s always a chance that employees will get hurt while on the clock. Workers’ compensation insurance is designed to cover the costs associated with employee injuries.
If you’re among the many employers in Horn Lake, a local insurance agent can guide you to the right workers’ compensation plan to protect your business and your staff. To learn more, call an independent insurance agent near you.
Are Horn Lake, MS Businesses Required to Buy Workers’ Compensation Insurance?
Mississippi requires businesses with at least five regular employees to have workers’ compensation coverage. However, Mississippi doesn’t mandate workers’ compensation if your employees are farm laborers, federal employees, domestic servants, independent (1099) contractors, or certain nonprofit employees. Even if your team members fall under the state’s excluded category, it can’t hurt to have workers’ compensation insurance anyway. If you’re confused about whether you should buy a policy, you can talk with a local independent insurance agent for their professional advice.
Your business can buy workers’ compensation insurance from a commercial insurance company or you can self-insure. Of course, if you opt to self-insure your business, then you’ll need to apply for approval and prove that you have the financial resources to do so.
If you decide to avoid buying a workers’ compensation policy, then you’re operating illegally and could be fined up to $1,000 and/or serve jail time. Plus, if one of your employees gets hurt, the officers of your business will probably have to pay out of pocket for the injured employee’s medical care and lost wages. That’s why it’s just easier and more cost-effective to buy workers’ compensation coverage for your business instead of avoiding the expense.
What’s the Premium for Horn Lake, MS Workers’ Compensation Insurance?
Workers’ compensation premiums are calculated according to how risky your industry is and how likely your employees are to get hurt or killed while working. For this reason, work comp rates can vary quite a bit among different industries.
Every US occupation has a designated classification code with corresponding rates that are managed by the Mississippi Workers’ Compensation Commission (WCC) and the Mississippi Insurance Department. Commercial insurers use these rates as base amounts when calculating premiums, but can give discounts of up to 25%. That’s why it’s important to work with an independent insurance agent who can compare rates among several insurance companies.
Let’s look at some general examples of Mississippi workers’ compensation premiums by industry:
- Clerical/office workers: $265 per year
- Landscapers: $6,175 per year
- Roofing contractors: $16,475 per year
- Tree trimmers and removers: $12,465
- Fast-food workers: $1,545 per year
Of course, the only way to know how much a workers’ compensation plan will actually cost your business is to get customized quotes. Contact a Horn Lake, MS insurance agent for help.
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What Costs Will Horn Lake, MS Workers’ Compensation Insurance Cover?
Workers’ compensation insurance is meant to pay for costs associated with occupational injuries and illnesses. Your work comp policy will cover these possible expenses:
- Medical care: Workers’ compensation covers all expenses for medical care needed to treat an occupational injury or illness. This includes things like follow-up treatment, physical therapy, diagnostic testing, and medications . Employees pay nothing out of their own pocket.
- Temporary disability: If an employee must take more than five days off work to recover from an occupational injury or illness, they’ll be able to collect a weekly cash benefit until they can resume working. The amount of the benefit is two-thirds of their average weekly pay.
- Travel reimbursement: Workers’ compensation coverage will reimburse employees for the miles driven to and from medical appointments. Reimbursement rates are updated annually by the state’s Workers’ Compensation Commission. As of January 1, 2020, the WCC approved a $.575 per mile travel reimbursement rate.
- Permanent disability: If an occupational injury or illness is so serious that the employee can’t return to their job, workers’ compensation coverage can provide the worker with a weekly cash benefit. The amount of the benefit is two-thirds of their average weekly pay. The disabled employee may collect this cash benefit for up to 450 weeks, or more than 8 years.
- Survivor benefits: If an injury or illness that happens on the job leads to a fatality, workers’ compensation can offset the family’s financial burden by covering paying a lump sum of $1,000 to the worker’s spouse and paying up to $5,000 for burial costs. In addition, the work comp plan will typically provide the worker’s dependents with two-thirds of the employee’s average weekly wages for up to 450 weeks, or more than 8 years.
Keep in mind that weekly disability benefits can’t exceed the yearly maximum allowed by the Mississippi Workers’ Compensation Commission. There’s also a cap on how much can be collected overall. As of January 1, 2020, the weekly maximum payout is $505.43 and the lifetime disability cap is $227,443.50.
You can learn more about workers’ compensation insurance benefits by talking with an independent insurance agent.
Discover the Best Horn Lake, MS Workers’ Compensation Insurance
If you’re shopping for the best workers’ compensation policy to cover your Horn Lake business, an independent insurance agent can help. These insurance agents can get you customized quotes from a variety of insurance companies that understand your industry. That way, you can be sure you’re getting the right coverage at a competitive price.
Contact an independent agent in or near Horn Lake, MS to set up an obligation-free consultation.