What type of insurance is mandatory for contractors in Mississippi?

In Mississippi, contractors are required to carry workers' compensation insurance. This type of insurance is designed to provide coverage for employees who may suffer from job-related injuries or illnesses. It helps ensure that workers receive necessary medical treatment and compensation for lost wages due to work-related injuries, thus protecting both the employee and the employer from potential lawsuits and financial liabilities resulting from workplace accidents.

While general liability insurance is important for contractors to cover damages to third parties, personal injury, and other claims that may arise from business operations, it is not a mandatory requirement. Property insurance and automobile insurance are also important for contractors but do not carry the same obligation as workers' compensation when it comes to employment safety and regulatory compliance.

In summary, the correct answer focuses on the necessity of having workers' compensation insurance in place to safeguard the welfare of employees and to comply with legal requirements in Mississippi.