Business Insurance in Mississippi
As a Mississippi business owner, you should make safety one of your top priorities to protect your livelihood against a wide range of natural or manmade threats, including workplace injuries, customer injuries, and property damage. A single lawsuit with costly legal fees and expenses would be difficult to cover without the help of an insurance company that will provide you with a lawyer for defense and pays damages for covered claims.
According to the Small Business Administration Office of Advocacy, in 2021, there were over 264,858 small businesses in Mississippi, representing more than 99% of all businesses in the state. More than 437,000 individuals are employed by Mississippi small businesses. According to the SBA, “small businesses” are those that have less than 500 employees.
Business Insurance in Mississippi
Insurance helps a business deal with injuries and property damage resulting from regular business activities. Without the correct insurance, your business would pay out-of-pocket for claims, lawsuit defense, and damages which can get expensive fast. As a result, it is recommended to have the following insurance policies for small businesses in Mississippi:
1. General Liability
A general liability policy is essential for all Mississippi businesses. It enables your business to avoid the high cost of lawsuits and meet business contract requirements. This policy is best for
- Non-employee injuries at your business
- Copyright infringement
- Bodily injury or property damage caused by your product
- Property damage or injury resulting from work performed
- Personal injury claims of libel, slander, wrongful detention
2. Business Property
Business Property insurance covers damage to or loss of a company’s physical assets, such as a commercial building, inventory, furniture, fixtures, equipment, and machinery used to run the operations.
In coastal states, most property policy include a wind/hail deductible. A wind /hail deductible applies separately to damage caused by windstorms. It is usually a percentage of the total value of the insured property at the location. For example, if a policyholder has a 2% wind deductible and their building is valued at $300,000, they would have to pay the first $6,000 of damage caused by a windstorm before their insurance would cover the remaining costs.
3. Professional Liability
Professional liability insurance, also called errors and omissions insurance, covers the costs of litigation related to financial damages sustained by customers. This policy is best suited for the following professions:
- Architects and Engineers
- Real Estate Agents
- Business Consultants
- Technology Providers
The idea for this insurance category was adapted to fulfill the specialized needs of those whose livelihoods depend on their expertise. Even with experienced professional service providers, regrettably, mistakes happen. Regrettably, your mistakes could cost clients significant time or revenue. Professional liability does not cover bodily injury or property damage incidents, those would be covered under general liability.
Malpractice insurance is another category of professional liability insurance that may cover the financial loss of a claimant for missing work, but the difference is that it also would respond to bodily injuries resulting from a practitioner’s negligence. The above categories of professional liability do not.
Cyber insurance protects firms from cyber attacks. It's crucial for companies handling sensitive credit card information or other private information like health records in Mississippi to obtain this Cyber insurance. It is best suited to cover losses from the following:
- Ransomware - Ransomware is a type of malware that encrypts a victim's files and demands payment in exchange for the decryption key.
- Distributed Denial of Service (DDoS) - A DDoS attack involves overwhelming a website or network with traffic from multiple sources, making it difficult or impossible for legitimate users to access the targeted system.
- Phishing - This attack typically involves using fraudulent emails or text messages designed to trick individuals into providing sensitive information, such as login credentials or financial information.
- Social engineering - Social engineering attacks use psychological manipulation to trick individuals into divulging sensitive information or performing unwanted actions
The effects of an attack are not just an inconvenience; they may result in catastrophic losses. Cyber threats can help your company recover the monetary losses. It can pay for credit monitoring, attorney fees, fines, and other expenses.
5. Business Owner’s Policy
Commercial property insurance and general liability coverage are often bundled into one insurance policy, referred to as a Business owner's policy (BOP). This type of policy is meant to cover small businesses with lower-risk operations. If a business does not qualify for a BOP, a commercial package policy can be written with multiple lines of coverage. However, it is not as cost-effective as a BOP.
6. Workers’ Compensation Insurance
Mississippi requires businesses with five or more employees to purchase workers' compensation insurance. Workers comp insurance covers bodily injuries or occupational diseases that workers suffer, regardless of fault. Though most working Mississippians are covered by workers’ compensation, there may be exceptions, including domestic workers and independent contractors.
A workers' compensation policy covers medical expenses, rehabilitative costs, prescriptions, and a percentage of lost wages when an employee cannot work because of on-the-job injuries.
Medical expenses stemming from workplace injuries and occupational illnesses can escalate rapidly due to the skyrocketing cost of medical care. Even if you only have three employees and your business is not required to purchase a workers’ compensation policy, your business will still be financially responsible to pay for the statutory benefits for an employee injured at work. If you do have five employees or more, note that Mississippi and most states impose costly penalties for not carrying workers’ compensation insurance.
Mississippi Small Business Insurance Requirements
The factors contributing to the insurance limits and coverage that any small business should meet in Mississippi include the following:
- The industry
- The number of people you employ
- Risks your business regularly encounters. Carpentry firms face more day-to-day physical injury risks than accountants.
Laws passed by your state can affect which business insurance you require. Although, these laws are necessary throughout Mississippi, from Jackson to Gulfport.
1. Workers' Compensation
Mississippi requires each business with five or more employees to carry workers’ compensation insurance. Domestic and farm laborers and employees of non-profit fraternal, charitable, religious, or cultural organizations are not covered under the Mississippi Workers Compensations Laws unless coverage is provided voluntarily by the employer.
2. Commercial Auto
Commercial auto insurance is required on all Mississippi vehicles used on public roads. The minimum liability limits required in Mississippi are:
- $25,000 per person bodily injury (limited to a single accident)
- $50,000 per accident for bodily injury
- $25,000 per accident for property damage
As you can see, the minimum liability limits are not very high. If involved in a severe accident where people are injured, these amounts will not go very far to cover the damages when at fault for a collision.
Generally speaking, business-owned vehicles, those titled in the business name and used for business purposes, should be insured on a Business Auto policy. Personal auto policies may exclude coverage for claims when a vehicle is being sued for business purposes.
Cost of Business Insurance in Mississippi
Mississippi small businesses and self-employed workers may pay around $50 monthly for their general liability insurance. But business insurance costs and expenses will vary based on several factors, such as:
Insurance Type: If you need business property insurance in Mississippi and your business is located close to the coast, this likely may be the most costly insurance you buy. The number of hurricanes and the cost of repairing the damage they cause have become more and more frequent. Not only is the price of commercial property insurance going sky high in Mississippi, Florida, Alabama, Louisiana, and Texas are all feeling the pinch of insuring property of any type.
Your industry: Certain industries are more likely to have adverse loss experiences. If your business is involved in a high-risk industry, you'll likely pay a couple of hundred dollars monthly.
Your coverage limits: The limits you choose to insure on a policy contribute to the premium determination. Deductibles are also factor in, but not as much as the limits written.
The number of employees at your business: Insurers consider workers' compensation as a significant factor that often influences the prices they charge. Always provide an accurate estimation to the insurer to get a precise quote.
Annual Revenue: Revenue is a big part of determining the general liability policy premium. The more work performed, products sold or service rendered, the more likely something will go wrong leading to a claim
Get a Quote for Mississippi Business Insurance
Visit us at InsuranceAdvisor.com if you need a price for your Mississippi business insurance. It’s easy, just choose your state, then pick your coverage options from General Liability, Commercial Property, Business Auto, Umbrella, and Workers’ Compensation insurance, and answer the application questions. Once we receive your request, we will provide you with a quote as quickly as possible.
Why Choose Insurance Advisor for Commercial Insurance in Mississippi?
At InsuranceAdvisor.com we are licensed to provide insurance in Mississippi and many other states. We can provide quotes from different insurance carriers to compare your options. Request quotes for your business from the comfort of your home, office, car or anywhere. Once you create an account, your business information is stored, and you can come back at any time to request quotes for other lines of insurance, get a certificate of insurance, and update your information.
Frequently Asked Questions (FAQ) about Mississippi Business Insurance
1. How much is business insurance in Mississippi?
Business liability insurance is reasonably priced for small Mississippi companies. As previously mentioned, if you need commercial property insurance, this may be more expensive. Individual factors that may influence your prices include:
- The type of business and its risks
- Business operations and revenue
- Value of assets insured
- Types of insurance purchased
- Coverage options, such as policy limits
2. Where can I get inexpensive business insurance in Mississippi?
If you want more occurrences and claims to be covered, you will pay more for insurance. The cheapest insurance is never the best insurance. We recommend that you get more than one quote from different insurance companies. This way, you can see how one insurance company’s rates compare to another’s. Always read the exclusions in the policy. This is where you find what is NOT covered. Get an affordable option with the most common mishaps likely to happen to your business insured and not listed under exclusions.
The old saying, “You get what you pay for,” is very accurate with business insurance.
3. What types of business insurance are required for businesses in Louisiana?
Businesses in Mississippi regularly buy multiple types of insurance policies. Common types of coverage include:
General liability insurance – Pays for third-party bodily injury and property damage liability claims for which your business is liable arising from your operations.
Professional liability coverage - Also known as E&O insurance, protects your company from losses and legal fees if somebody accuses you of mistakes, missed deadlines, or incomplete work.
Workers’ compensation coverage - Workers' compensation coverage pays for medical care and lost wages for employees injured on the job.
Commercial auto insurance – Provides state required auto liability for bodily injury and property damage arising out of accidents. It can also include many optional coverages like comprehensive and collision physical damage for your autos.
4. Which insurance companies are best in Mississippi?
Like our agents at Insurance Advisor, an experienced Mississippi commercial insurance agent can determine the best insurance company for your business. Insurance companies often specialize in specific business industries, which can vary from state to state. We will match your Mississippi business with carriers that know your industry and can meet your company’s insurance needs. Visit us at InsuranceAdvisor.com to request a quote for General Liability, Workers’ Compensation, Business Property, Business Auto, or Umbrella insurance.
5. How to find out if a business has liability insurance in Mississippi?
Just ask your vendor or product supplier for a copy of their general liability insurance certificate to be sent to your company. Your business should keep certificates of insurance on file for all service providers and product distributors. At expiration, renewal certificate should be requested and kept on file.
The Certificate of Insurance will show the policy number and the insurance company and usually lists their agency’s contact information. If still in doubt, you can call the agency to verify the coverage shown on the certificate.