Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Mississippi

When starting a business in Mississippi, understanding workers compensation insurance requirements is essential for operational compliance and employee protection.

Who Must Carry Workers Compensation Insurance

• Employers with five or more employees: Mississippi law generally requires businesses with five or more employees to carry workers compensation insurance.
• Construction industry: Any construction business must have workers compensation insurance regardless of the number of employees.
• Non-construction businesses: If you have fewer than five employees, workers compensation insurance is optional but recommended.

Operational Considerations

• Employee classification: Properly classify employees to determine coverage needs and insurance premiums.
• Insurance providers: Obtain coverage through private insurance companies or the Mississippi Workers' Compensation Assigned Risk Pool if you have difficulty securing insurance.
• Recordkeeping: Maintain accurate records of employee injuries and claims to comply with reporting requirements.
• Payroll impact: Workers compensation insurance premiums are typically based on payroll and job risk classifications.

As of 2026

Mississippi's workers compensation insurance requirements may be updated, so verify current thresholds and coverage rules with the Mississippi Workers' Compensation Commission or a licensed insurance professional.

Ensuring proper workers compensation insurance helps protect your business from liability and supports employee safety and compliance.