Insurance in Mississippi

The Mississippi State Board of Contractors (MSBOC) requires commercial contractor license applicants to provide proof of general liability insurance of $300,000 per occurrence / $600,000 aggregate and, if the applicant has 5 or more employees, workers' compensation coverage. Workers' comp is required under Miss. Code Ann. 71-3-5 for employers with 5 or more employees. Minimum coverages a new trades shop should expect to carry: - General liability. $300,000 per occurrence / $600,000 aggregate meets MSBOC minimum; $1M per occurrence / $2M aggregate is the typical commercial job requirement on larger projects. Covers bodily injury and property damage arising from your work. - Workers' compensation. Required once the business has 5 or more employees under Miss. Code Ann. 71-3-5. The Mississippi Workers' Compensation Commission administers the system. - Commercial auto. Your personal auto policy almost certainly excludes business use. Hired and non-owned auto coverage protects against claims arising from employee-owned vehicles used on company business. - Tools and equipment (inland marine). Homeowners and auto policies exclude business tools beyond small dollar limits. Inland marine is the contractor-specific tool coverage. - Umbrella. A $1M or $2M umbrella is cheap relative to what it protects on a job with property damage exposure. Shop the market. Trade association programs (ABC Mississippi, AGC of Mississippi, PHCC, MCA) often have group insurance programs that beat street-rate premiums for specialty trades. Independent agents who write construction can quote multiple carriers and compare class codes. Never let coverage lapse during an active job. A one-day gap on a multi-month project is enough to void a claim if something happens during the gap. MSBOC can suspend a license if required coverage lapses.