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When to Purchase Workers Compensation Insurance in Mississippi

Being a business owner comes with many responsibilities. There are buildings to maintain, equipment to purchase, sales to make, and employees to hire and manage. One way you can protect your staff is with worker’s compensation insurance. This coverage is effective the moment a new employee begins working for you and provides medical and wage loss benefits in the event of illness or injury while on the job. Sometimes, though, the line between an employee and an independent contractor is blurry.

Stay within the required legal regulations by reaching out to The Nowell Agency for worker’s compensation insurance in Mississippi. Our knowledgeable brokers assist business owners like you with all your coverage needs. You will gain peace of mind by contacting us today.

Guidelines for Distinguishing between an Employee and an Independent Contractor

As the employment market changes, there are many more workers who are independent contractors. Often this means that the contractor does not fall under the requirements for worker’s compensation coverage. As noted in an article in the Mississippi Business Journal, the line is fine, so it pays to know the difference and when coverage is required.

Here is a brief set of guidelines to keep in mind:

  • The Amount of Supervision Required. Consider how much oversight a worker needs. If you do not have to watch over them or do not have much control over them, then they may be considered an independent worker.
  • The Ability to Turn Down Work. Employees, in general, cannot turn down work that is required of them. However, an independent contractor can refuse to perform some actions without recourse or liability.
  • Who Provides the Equipment and Tools. An employee will use your tools and equipment. Someone who works for themselves is expected to supply their own devices.
  • The Number of Companies the Worker Serves. Employees work for you alone. An independent contractor can work for a variety of clients including your company.
  • Payment for Work. Employees fall under IRS regulations for tax withholding. Someone independent is responsible for their own taxes. Also, they get paid per job and do not receive a regular salary.

In the state of Mississippi, if you have five or more employees, the law requires you to purchase and maintain worker’s compensation. On the other hand, if you have an independent contractor working for you, it is a good idea to have their insurance agency forward a certificate of insurance coverage for workman’s compensation.

Learn about When You Need Worker’s Compensation Insurance for Your Mississippi Company

Ensure you follow Mississippi’s laws on providing the right insurance for your employees. The experienced brokers at The Nowell Agency, Inc. have been helping companies like yours since 1984 attain worker’s compensation insurance. Your team will be covered, and your business protected when you talk with us today.


Call one of our offices near you to schedule a meeting with a knowledgeable and experienced broker at The Nowell Agency about worker’s compensation insurance for your industry. Request a quote online.

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