Small businesses account for almost all companies in Mississippi and employ nearly half of the state’s workers.1
Whether they’re retail stores or professional services firms, all these companies need the protection of business insurance. It can provide a financial safety net after unexpected events, such as:
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Continue reading to learn about important types of business insurance in Mississippi. Or get a free instant quote to see customized coverage options for your business.
Mississippi business insurance typically comes in customized packages with several different types of coverage, which insurance companies call policies. Each type of coverage can provide assistance when different kinds of accidents happen.
For example, general liability insurance can help protect against financial losses if you’re accused of causing physical injury to a non-employee or damaging their property. Whereas, if one of your employees gets hurt on the job, you would need Mississippi workers’ compensation coverage.
Other types of business insurance coverage purchased in the state of Mississippi include professional liability coverage, commercial auto insurance and business property insurance.
Whether you’ll want some or all of these types of coverage will depend on your business operations. Every small business is unique and has different business insurance needs. For example, a Hattiesburg construction company probably requires more policies than a Meridian accountant.
Mississippi general liability coverage, also called business liability or commercial general liability insurance, is an essential form of small business insurance in Mississippi. It can help pay for medical costs, damages and lawsuit expenses if a non-employee claims that your business caused an injury or property damage.
For instance, a customer at a small cafe in Jackson accuses a barista of spilling a scalding cup of coffee on their arm and seeks medi
State law requires most businesses with five or more employees to carry Mississippi workers’ compensation insurance. This type of coverage is designed to help pay expenses, including medical costs and lost wages, after employees are hurt or become sick on the job.
For instance, an employee at a Tupelo HVAC firm hurts their back while lifting heavy equipment and requires a trip to the emergency room. Workers’ comp insurance could help pay for the worker’s medical expenses and cover a portion of lost wages if the employee is unable to return to work immediately.
Even if your company employs fewer than five people, it’s a good idea to have workers’ comp insurance. That’s because it can help you avoid significant out-of-pocket expenses after a workplace injury and provide protection against lawsuits.
Mississippi businesses that own vehicles or drive for business reasons need commercial auto insurance. That’s because personal auto coverage won’t pay for accidents that happen while behind the wheel on business.
For instance, a self-employed plumber in Biloxi has a wreck en route to a job, damaging his work van and two other cars. Commercial auto insurance could help pay to repair the vehicle damages and cover medical bills if anyone suffers bodily injury.
Hired and non-owned auto coverage is an optional add-on to commercial auto policies. If you ask employees to drive their own vehicles or rent cars for business, you’ll want to make sure this type of coverage is included in your insurance needs.
Mississippi commercial property insurance can help pay for damaged or destroyed business property after a covered event, such as water, fire or wind damage.
For instance, a sprinkler malfunction at a Tupelo auto repair shop damages the office, ruining a computer, printer and the plasterwork. Commercial property coverage could help pay to clean up the mess, repair the physical damage and replace the damaged business equipment.
It’s important to read your policy documents carefully to make sure there aren’t exclusions. Many insurers don’t cover flooding or hurricane damage.
Claims of professional negligence can hurt both a small business’s finances and its reputation. If a client says that you delivered substandard work, failed to complete a job or missed a deadline, you could be sued.
Professional liability coverage, also known as E&O or errors and omissions insurance, can help cover costs associated with these types of claims, including court and legal fees and any damages for which you’re found responsible.
For instance, a client accuses a Gulfport accountant of making a critical error that led to a hefty fine. E&O coverage could help the accountant reimburse the client for the fine, as well as assist with legal costs if the client files a lawsuit