Popular QuestionsCommonly Asked Questions about Business Insurance in Iowa

Why should I have Iowa business insurance?

Hazards such as damaging weather, property crimes, and liability lawsuits are often very expensive. Business insurance is designed to protect your company from the financial losses it may face due to these and other risks. This coverage can prove beneficial, as is evidenced by the fact that in 2016 alone, businesses in Iowa collected approximately $1.6 billion in insurance claims.

A local independent agent can help you build a customized business insurance plan that is suitable to meet the specific needs of your particular company.

How have other business owners used their commercial insurance?

Statisticians predict that an estimated 40% of all small businesses are likely to experience a property damage or general liability lawsuit setback in the next 10 years.

Lawsuits aren’t the only expensive hazard faced by businesses. Here are some common hazards American companies have been using their insurance to cover:

  • Theft and burglary: Average cost per claim - $8,000
  • Water damage and freezing pipes: Average cost per claim - $17,000
  • Wind and hail damage: Average cost per claim - $26,000
  • Fire damage: Average cost per claim - $35,000
  • Customer slip and fall injuries: Average cost per claim - $20,000
How does Iowa business insurance help me?

Business insurance is designed to cover losses associated with a variety of potential hazards so that your business doesn’t have to.

If your inventory is damaged, a severe weather event forces your business to shut down for several weeks, a customer files a liability lawsuit against your company, or one of your employees is severely injured on the job, a solid business insurance policy package will ensure that you won't have to worry about how these exposures will affect your business’s bottom line.

Here’s what you can expect a comprehensive business insurance policy package to do:

Pay for Damage to Your Business Property

  • This is called "business property insurance."
  • Example: An electrical fire gets out of control in the building where your business is housed. The property that isn’t destroyed by the flames is severely damaged by smoke and water from the firefighting efforts.

Pay for Losses Sustained Due to Necessary Closures

  • This is called "business interruption insurance."
  • Example: A tornado damages your business as well as the roads leading to it and local power lines. Because of this, you are unable to reopen for several weeks.

Pay for Someone Else’s Medical Bills

  • This is called "general liability insurance."
  • Example: A customer in your store is severely injured when a display set-up topples over.

Pay for Accidents Involving Company Vehicles

  • This is called "commercial auto insurance."
  • Example: A sales representative from your company misjudges a lane change and causes an accident while driving to an industry expo in your company van.

Pay for Employee Injuries and Work-Related Illnesses

  • This is called "worker's compensation."
  • Example: An employee at your food processing plant becomes disabled due to a mishap involving a mechanical malfunction.

There are many more commercial property and commercial liability products available. Business owners can therefore obtain the appropriate coverage to cover their companies against every one of their specific exposures.

To make sure you're properly insured, consult with a local independent insurance agent who has experience with covering businesses that operate in your industry.

Does Iowa require businesses to have insurance?

A business insurance policy is not required by law. However, some types of commercial insurance that are often included in a comprehensive business insurance policy package may be.

  • Most financial institutions will require you to have property and/or liability coverage before they will agree to finance a business loan or line of credit.
  • In Iowa, nearly all employers are required by law to carry worker's compensation insurance.
  • Contracting firms will often be required to show proof of contractors insurance before they can be hired to do a job.
  • Businesses that have company-owned vehicles will need to cover these cars, trucks, vans, and buses with commercial auto insurance.

To learn more about coverage that your business may need to have, you can talk with a local independent insurance agent.

How do I find the best price for Iowa business insurance?

Business insurance rates are calculated according to a number of factors such as the type of business you have, the value of your business assets, the number of workers you employ, your liability exposures, and the amount and types of coverage you want to purchase. 

Coverage needs can vary significantly from one business to the next, so it is a good idea to work with an experienced insurance agent who can help you build a comprehensive policy package for your company. These agents can ensure that you are getting the right coverage for each of your business’s potential exposures while helping you avoid paying for coverage that is not a good fit.

Also, because independent agents can work with multiple insurance companies, they can search for the best price for each type of coverage you need. Sometimes this means building a business insurance portfolio that includes policies from several different insurance companies. Don’t worry. You will still only have one point of contact with your independent insurance agent.

Are there any independent agents in Iowa?

Yes! There are currently 720 independent agents in Iowa who are ready to help. 

These experienced agents can work with several different insurance providers to help you build a comprehensive yet competitively priced business insurance portfolio. Contact an agent near you to learn more and to get help ensuring that your business is fully covered against all of its potential risks.

InformationFind the Best Insurance in Your City

Let's take a look at some factors that can influence business insurance rates and see how your city measures up.

  • Number of business in the US: 27,626,360
  • Number of businesses in Iowa: 266,382
  • Burglary rate per 1,000 residents in the US: 3.76
  • Burglary rate per 1,000 residents in Iowa: 3.53
  • Auto theft rate per 1,000 vehicles in the US: 2.29
  • Auto theft rate per 1,000 vehicles in Iowa : 1.21
City Population  Number of Established Firms Burglary Rate Per 1,000 ResidentsAuto Theft Rate per 1,000 Vehicles
Ames66,2584,2023.680.85
Ankeny67,3554,3882.340.62
Bettendorf36,5433,0633.711.27
Cedar Falls40,5362,9353.070.67
Cedar Rapids133,5629,8077.042.59
Council Bluffs62,1664,3216.966.86
Davenport101,5907,99410.805.39
Des Moines214,23716,54310.995.80
Dubuque57,8825,1225.681.08
Iowa City75,1305,9124.111.07
Marion40,3592,5523.610.92
Sioux City82,6515,9047.383.49
Urbandale44,3793,8133.161.08
Waterloo67,3284,6137.842.09
West Des Moines67,8996,6442.241.07

Des Moines, IA Business Insurance

Covering Your Business Assets

Property

The high property crime rate in Des Moines makes it particularly important for you to ensure that your business assets are sufficiently covered against risks like theft and vandalism. In addition to covering against crime, your policy can also cover loss and damage due to hazards like severe weather and accidental fires.

Commercial Auto

If your business owns a vehicle or a fleet of vehicles, you may benefit from having the added liability coverage that comes with a commercial auto insurance policy. This is because liability lawsuits often result in higher judgments when they are brought against businesses. Your rates will be based on several factors, including the number and types of vehicles you are covering, information about the employees who will be driving them, and the risk of collisions in your city.

Worker's Compensation

Worker's compensation insurance can cover the cost of medical bills and lost wages if your workers are injured on the job.  Rates are based primarily on your company’s overall payroll and the likelihood that your employees will be injured based on the types of jobs they do.

For every $100,000 in annual payroll, here is an estimate of what businesses in the three leading industries in Des Moines, IA would pay for workers’ comp coverage:

  • Finance and insurance industry: $270
  • Healthcare industry: $1,990
  • Accommodation and food services industry: $1,833

Des Moines is known as a major center for the finance and insurance industry. Fortunately, jobs in this field have a low risk of employee injuries and are therefore comparatively inexpensive to insure with worker's compensation coverage. Workers in the healthcare industry, however, see far more incidents of worker accidents, so the rate for this industry is significantly higher.

A local independent agent can help you compare quotes for worker's compensation policies that are well suited to your business industry.

Cedar Rapids, IA Commercial Insurance

Covering Your Business Assets

Property

You will want to be sure that all of your business property is covered at levels that will allow you rebuild, repair, or replace as needed. Floods pose a significant risk in Cedar Rapids, but this risk is typically excluded from business property coverage. A local independent agent will be aware of this risk and can help you add commercial flood insurance to your business insurance policy package so that you are fully covered.

Commercial Auto

Whether you are insuring a delivery van or a fleet of semi-trucks, commercial vehicle insurance can protect your company against losses related to liability risks and property damage. If your business engages in interstate commerce, a local agent can ensure that your coverage meets all state and federal requirements so that your business is operating within the confines of the law.

Worker's Compensation

Worker's compensation insurance is required by state law for nearly all employers in Cedar Rapids. This insurance can cover medical treatment, lost wages, and other costs associated with injuries that occur on the job. Every type of business has its own risks when it comes to employee safety. Some jobs are simply safer than others. That is why worker’s compensation rates often vary significantly from one business industry to the next.

Based on a $100,000 annual payroll, here is an estimate of what businesses in the three leading industries in Cedar Rapids, IA would pay for workers comp coverage:

  • Healthcare industry: $1,990
  • Educational services industry: $940
  • Accommodation and food services industry: $1,833

As you can see, rates tend to vary significantly from one industry to the next. Even within these industries, there can be a wide variance of rates depending on the specific jobs done by your employees and the risks associated with them. Within the medical industry, a home healthcare worker has a much higher chance of being injured on the job than a receptionist at dermatologist’s office.

Talk to your local independent insurance agent to discover how much it will cost to cover your specific business.

Davenport, IA Business Insurance

Covering Your Business Assets

Property

Hazards like theft, vandalism, and accidental fires can lead to costly business property losses. So can damage caused by Davenport’s damaging weather events like hail, heavy winds, and severe storms. Fortunately, when you have the right business insurance in place, your company will be able to repair damage and continue to function without experiencing a large financial loss.

Commercial Auto

Commercial auto insurance can protect your business from facing large liability costs if one of your drivers causes an accident in a company car. Rates are based on a number of factors like your employees’ driving records and the types of vehicles you are covering. It costs far more to insure a 12-passenger van than a cargo van, since your liability risks are greater when you have passengers.

Worker's Compensation

Worker's compensation insurance is designed to cover the cost of medical treatment, lost wages, and other expenses related to injuries or illnesses your employees may suffer while doing their jobs. It is required for nearly all Iowa businesses that have employees. Worker’s compensation rates are assigned according to your company’s overall payroll and the types of jobs your employees do.

Based on a $100,000 annual payroll, here is an estimate of what businesses in the three leading industries in Davenport, IA would pay for workers’ comp insurance:

  • Healthcare industry: $1,990
  • Educational services industry: $940
  • Accommodation and food services industry: $1,833

A kindergarten teacher in the Davenport Community School District and a professor at Saint Ambrose University are both less likely to be injured on the job than an ICU nurse at Genesis Medical Center or a fry cook at a local diner. The average worker's compensation rates for the industries in which they work reflect this.

To start comparing quotes for worker's comp coverage for your business, consult a local independent insurance agent.

Sioux City, IA Commercial Insurance

Covering Your Business Assets

Property

Having a sufficient amount of business property insurance can shield your company from losses related to hazards like accidental fires, property crimes, and severe weather events like tornadoes and electrical storms. You can make sure your business is properly insured by working with an independent insurance agent in Sioux City.

Commercial Auto

If your Sioux City business owns a vehicle or fleet of vehicles, you will need to carry commercial auto insurance. Rates for coverage can vary according to the number and types of vehicles you are covering, as well as the risk of collisions and of vehicle theft where your employees will be driving. If you engage in interstate commerce, you will need to make sure that your coverage meets federal as well as state minimum coverage requirements.

Worker's Compensation

Worker's compensation insurance covers medical expenses and paid time off for employees who suffer occupational illnesses or are injured on the job. With few exceptions, if your Sioux City business has employees, you are required by law to have this insurance. Rates for coverage can vary significantly from one business to the next, depending on the types of jobs your employees do and your company’s overall payroll.

Based on a $100,000 annual payroll, here is an estimate of what businesses in the three leading industries in Sioux City, IA would pay for workers’ comp insurance:

  • Food production industry: $11,930 per year
  • Healthcare industry: $1,990
  • Educational services industry: $940

Food production is a dangerous job. In fact, employees in this field suffer more injuries and fatalities than any other industrial occupation. Because of this, rates for worker's compensation insurance are quite high in this industry. Employers can often get lower rates for coverage if their business uses industry-recognized safety protocols and has a historically low rate of employee injuries.

Talk to a local independent agent near you for help finding the best rates for worker's compensation insurance for your business.

Iowa City, IA Business Insurance

Covering Your Business Assets

Propert

Most businesses invest a lot in their assets such as computers, furniture, tools, machinery and supplies. Business property insurance can help cover the cost of repairing or replacing this property if it is lost or damaged by a covered event like a tornado. Find the policy and rate that works best for your Iowa City business by teaming up with a local independent agent.

Commercial Auto

Many businesses in Iowa City have company-owned cars, trucks, vans, or buses. If yours is among them, you will need to cover these vehicles with a commercial auto insurance policy. Doing so can prevent your business from facing a financially devastating lawsuit if one of your drivers is responsible for a serious accident.  A local independent agent can help you find a suitable policy at a competitive price.

Worker's Compensation

Worker's compensation insurance covers expenses like medical bills and lost wages for workers who are injured in the course of doing their jobs. It is required for nearly all Iowa businesses that have employees. Rates for this coverage are assigned according to your company’s overall payroll amount and the types of jobs your workers do.

For every $100,000 in annual payroll, here is an estimate of what businesses in the three leading industries in Iowa City, IA would pay for workers’ comp coverage:

  • Educational services industry: $940
  • Healthcare industry: $1,990
  • Accommodation and food services industry: $1,833

Base rates are set by the state in accordance with the various hazards of each particular job. This means that employees in hazardous professions like nursing and hotel housekeeping will cost more to cover than those with fewer risks, like professors and financial aid administrators. Maintaining a safe workplace and keeping accidents at a minimum can result in lower worker's compensation premiums. 

Set up an obligation-free consultation with one of Iowa City’s independent insurance agents to learn more.