Key Takeaways
- General liability insurance protects businesses from third-party bodily injury and property damage claims
- Commercial General Liability (CGL) policies use occurrence or claims-made triggers
- Professional liability covers errors and omissions in professional services
- Mississippi businesses should carry adequate limits to protect against lawsuits
- Workers' compensation is required for most Mississippi employers with 5+ employees
Mississippi Liability Insurance
Liability insurance is essential protection against third-party claims for bodily injury, property damage, and other legal liabilities.
Commercial General Liability (CGL)
Coverage Provided
Coverage A - Bodily Injury and Property Damage Liability
Pays for third-party claims alleging:
- Bodily injury to others
- Property damage to others' property
- Medical expenses (Coverage C)
- Legal defense costs (in addition to policy limits)
Coverage B - Personal and Advertising Injury
Pays for claims involving:
- Libel and slander
- False advertising
- Wrongful eviction
- Copyright or trademark infringement in advertising
Occurrence vs. Claims-Made
| Trigger Type | When Coverage Applies | Best For |
|---|---|---|
| Occurrence | When injury/damage occurs | Most businesses |
| Claims-Made | When claim is made during policy period | Professional liability |
Occurrence Example:
- Injury occurs: June 2024
- Claim filed: January 2026
- Policy that responds: 2024 policy (when occurrence happened)
Claims-Made Example:
- Injury occurs: June 2024
- Claim filed: January 2026
- Policy that responds: 2026 policy (when claim made)
Exam Tip: Occurrence policies cover incidents that occur during the policy period, regardless of when the claim is made. Claims-made policies cover claims made during the policy period, regardless of when the incident occurred (subject to retroactive date).
Mississippi Workers' Compensation
Who Must Carry Coverage
Mississippi requires workers' compensation for:
| Employer Type | Requirement |
|---|---|
| 5+ Employees | Must carry workers' comp insurance |
| Construction | Required if 1+ employee |
| Government | Required for all government employees |
| Less Than 5 | May voluntarily provide coverage |
What Workers' Comp Covers
Benefits Provided:
-
Medical Benefits
- All necessary medical treatment
- Hospital care
- Medications
- Rehabilitation
- No deductibles or co-pays
-
Disability Benefits
- Temporary total disability (66⅔% of average weekly wage)
- Permanent partial disability (scheduled benefits)
- Permanent total disability (lifetime benefits)
-
Death Benefits
- Burial expenses (up to $10,000)
- Weekly benefits to dependents
- Based on worker's average weekly wage
Exclusive Remedy
Workers' compensation is the exclusive remedy - employees cannot sue employer for workplace injuries, except:
- Intentional injury by employer
- Employer failed to carry required workers' comp
- Injury outside scope of employment
Penalties for Non-Compliance
Mississippi employers who fail to carry required workers' comp face:
- Fines of $1,000 to $5,000
- Criminal misdemeanor charges
- Employee can sue employer directly (loses exclusive remedy protection)
- Stop-work order until coverage obtained
Exam Tip: Mississippi requires workers' compensation for employers with 5 or more employees, or any construction employer with 1 or more employees. Workers' comp is the exclusive remedy—employees cannot sue the employer for workplace injuries.
How many employees must a Mississippi employer have before workers' compensation insurance is required?