Find the Best Business Insurance Options in Iowa
There are over 273,000 small businesses in Iowa, which represent over 99% of the businesses in the state. Small businesses employ over 644,000 people in Iowa, making them essential to the state’s economy.
Iowa business owners face various risks, from crime, severe weather, fires, and other kinds of property damage to the financial devastation that a single lawsuit can bring. A comprehensive business insurance policy can help you repair and rebuild damaged property after a disaster. It can also help you stay in business and pay for your defense if you are faced with a lawsuit.
An independent insurance agent can help you compare business insurance quotes in Iowa.
Best Business Insurance Companies in Iowa
There are a lot of insurance companies that offer business insurance in Iowa. We’ve noted some of the best business insurance companies in Iowa. They are highly rated for their mix of valuable coverage offerings and competitive pricing.
- Liberty Mutual: Liberty Mutual is headquartered in Boston, MA, and has been offering business insurance since 1912. Today, the company offers a flexible, multiline range of coverages designed to meet the needs of any business, regardless of size or industry.
- Hanover Insurance Group: Together with local independent agents, Hanover Insurance Group offers standard and specialized insurance protection for small and mid-sized businesses.
- Progressive: Progressive is based in Ohio, but offers business insurance in most states, including Iowa. Iowa business owners can look to Progressive for most of their business insurance needs.
- EMC Insurance Companies: EMC is in the top 60 business insurance companies in the United States. The company specializes in designing well-rounded insurance programs to protect the financial assets of many types of businesses and organizations.
- Travelers: Travelers offers highly rated business insurance in Iowa. The company provides a variety of business insurance options, including inland marine, workers' compensation, and general liability.
An independent insurance agent in your area can help you learn more about these and other Iowa business insurance companies. A local agent can help you get competitive quotes for the coverage that fits your Iowa business insurance needs.
Iowa Business Insurance Requirements
Business insurance is a package of insurance policies covering your property and liability risks. Most types of business insurance are not required in Iowa. If your business owns any vehicles, you likely have to buy commercial vehicle insurance that complies with the state’s financial responsibility laws.
Most employers in Iowa must also obtain workers’ compensation insurance, with a few exceptions. Workers’ compensation insurance covers employees who are injured on the job.
Your independent insurance agent can help you learn more about the requirements for commercial vehicle insurance and workers’ compensation insurance in Iowa.
What Business Insurance Covers in Iowa
A typical business insurance package in Iowa will include the following types of coverage, at a minimum:
- Commercial liability insurance: Protects your business from lawsuits related to bodily injury and property damage claims. It pays for medical expenses, legal fees, and financial settlements or judgments. Your general liability policy even covers personal injury claims such as libel and slander.
- Commercial property insurance: This covers damage to a building and its contents if damaged by a weather event, fire, theft, vandalism, and other covered perils.
- Business interruption coverage: Protects your earnings and pays certain expenses if your business cannot operate because of damage after a fire, hail, wind, equipment breakdown, or another covered event. If you are forced to close for a while to make repairs or rebuild your business, this coverage pays for rent, employee salaries, lost income, relocation fees, and more.
- Commercial auto insurance: Protects your business-owned cars and trucks from property damage and liability claims.
- Workers’ compensation insurance: Pays for medical expenses and a portion of an employee's lost wages after a work-related injury.
Your business insurance in Iowa may include additional policies that cover your unique risks.
Liability Coverage Options for Small Businesses in Iowa
Lawsuits against businesses are common. Whether a customer trips and falls in a store or a food manufacturer is responsible for sickening hundreds with tainted products, negligence claims can quickly destroy a business.
A commercial general liability (CGL) policy is a type of small business liability insurance that offers broad protection from lawsuits. It covers the injured party's medical expenses and any property damage you are responsible for. It also covers court costs, attorney fees, and even settlements or judgments that you must pay to injured parties.
A CGL policy does not cover every kind of liability risk. There are additional small business liability policies available for times when your CGL policy isn’t sufficient.
Talk to your independent insurance agent about why you might need other liability coverage options like commercial umbrella insurance, employment practices liability insurance, cyber liability insurance, professional liability insurance, or any other customized small business liability protection.
Property Coverage Options for Small Businesses in Iowa
Property losses can originate in a variety of ways and cause tremendous harm to your business. Here are the basic business property coverage options in Iowa:
Commercial property insurance
- Protects you when your commercial property is damaged by someone else or by some type of unforeseen event.
- You need business property insurance if you own your building or have tangible business assets (furniture, computers, fixtures, inventory, materials, tools, etc.).
- Repairs or replaces damaged or destroyed commercial property after damage due to fire, vandalism, smoke, theft, severe weather, and other causes of loss.
Business interruption insurance
- Usually included as part of a commercial property policy.
- Protects your earnings if your business is unable to operate because of damage after a fire, hail, wind, equipment breakdown, or some other covered event.
- If you’re forced to close your doors for a period of time in order to make repairs, this coverage pays for rent, employee salaries, lost income, relocation fees, and more.
A local independent insurance agent can help you get quotes for business property insurance in Iowa.
Other Insurance Options for Small Business Owners in Iowa
Your business insurance needs likely won’t end with basic property and liability coverage. Other insurance options for small business owners in Iowa include:
- Business owners policy (BOP): A package policy that includes commercial liability insurance, commercial property insurance, and business interruption insurance.
- Workers’ compensation insurance: Typically required for any business that has employees. It pays for lost income and medical expenses for employees who are injured on the job.
- Commercial vehicle insurance: Covers your vehicles and drivers in the event of an accident or other types of vehicle damage.
- Cyber liability insurance: Provides coverage in the event of a data breach involving your business.
- Employment practices liability insurance: Protects you if an employee sues you for discriminatory employment practices.
- Flood or hurricane insurance: Your basic commercial property policy does not cover flood or hurricane damage. Talk to your agent about flood and hurricane insurance if you live in an area that is prone to these events.
- Professional liability insurance: Protects you if a client claims you have been negligent in providing professional services.
- Commercial umbrella insurance: Provides excess liability coverage above and beyond the limits of your applicable underlying commercial liability policies.
This is not an exhaustive list of your business insurance options in Iowa. An independent insurance agent can make sure that all of your Iowa business insurance needs are met.
Average Cost of Business Insurance in Iowa
Business insurance costs are not the same for every company in Iowa. In fact, a variety of factors are used to determine how much you'll pay for your business coverage. Some of the typical factors that are used to determine the cost of business insurance in Iowa are as follows:
- The company’s annual gross sales and payroll
- The company’s employee count
- The size and physical location of the company
- The company's physical assets (buildings, vehicles, machines, equipment, inventory, etc.)
- The nature of the business (what does the company do?)
- The company’s prior insurance claims history
If, for example, your city is prone to problems like crime and natural disasters, you’ll pay more for business insurance because you have a greater likelihood of filing a property damage claim.
An independent insurance agent can help you understand all of the risks you face and get quotes for affordable business insurance in Iowa.
How does your city measure up to the national average?
Number of businesses in the US: 30,819,176
Burglary rate per 1,000 residents in the US: 3.76
Auto theft rate per 1,000 vehicles in the US: 2.29
| City | No. of businesses | Burglaries / 1,000 people | Auto thefts / 1,000 cars |
| Ames | 4,202 | 2.02 | 0.85 |
| Cedar Rapids | 9,807 | 6.25 | 2.72 |
| Council Bluffs | 4,321 | 8.47 | 7.87 |
| Davenport | 7,994 | 7.28 | 3.35 |
| Des Moines | 16,543 | 10.46 | 6.01 |
| Dubuque | 5,122 | 2.38 | 1.1 |
| Iowa City | 5,912 | 4.06 | 0.92 |
| Marion | 2,552 | 2.93 | 1.23 |
| Sioux City | 5,904 | 7.83 | 3.01 |
| Urbandale | 3,813 | 1.21 | 0.81 |
| Waterloo | 4,613 | 7.61 | 1.91 |
| West Des Moines | 6,644 | 2.24 | 1.07 |
How Does Your Iowa City Measure Up?
Property
You will want to be sure that all of your business property is covered at levels that will allow you to rebuild, repair, or replace as needed. Floods pose a significant risk in Cedar Rapids, but this risk is typically excluded from business property coverage.
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, your coverage needs to meet state and federal requirements so that your business is operating within the confines of the law.
Workers' compensation
Workers' 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 workers' compensation rates often vary significantly from one business industry to the next.
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 the 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.
Workers' compensation
Workers' 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. Workers' compensation rates are assigned according to your company’s overall payroll and the types of jobs your employees do.
Property
The high property crime rate in Des Moines makes it particularly important for you to make sure 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
Whether 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.
Workers' compensation
Workers' 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.
Property
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.
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.
Workers' compensation
Workers' 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.
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.
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 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.
Workers' compensation
Workers' 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.
Iowa Business Insurance FAQs
While you can't predict the exact costs of small business insurance in Iowa, it’s important to understand what variables play a role in your rates. Here are just a few of the factors that insurance companies use when calculating your business insurance costs in Iowa:
- Type of industry
- Number of employees
- Gross annual sales
- Location of business
- Number of company vehicles
- Past claims reported
- Number of years in operation
In Iowa, it’s essential for almost every business to carry a comprehensive business insurance package. However, business insurance is not required by law in Iowa, except for workers’ compensation insurance. Workers’ compensation is required for most employers in Iowa.
In addition, if you own any vehicles, you’re required to comply with Iowa’s car insurance laws.
Most businesses in Iowa need a combination of property and liability insurance, in addition to workers’ compensation insurance and commercial vehicle insurance, as required by the state.
Depending on your unique business and the risks you face, you’ll likely need some additional coverage, such as professional liability insurance, commercial umbrella insurance, or cyber liability insurance.
Small business general liability insurance is one of the first policies every small business owner obtains. It helps protect your operation from bodily injury and property damage lawsuits that come your way as a result of doing business. Though not mandatory by Iowa state law, this policy is necessary to avoid major financial ruin.
Health insurance and other employee benefits are important for many small businesses and their employees. A good employee benefits plan helps companies support a healthy and satisfied workforce. In addition, employers who offer employee health plans may also be eligible for significant tax benefits.
There are many different health insurance policy types and options available for you to choose from. An independent insurance agent can help you find small business health insurance plans in Iowa.
Travelers, Liberty Mutual, EMC, Progressive, and Hanover Insurance Group are some of the best small business insurance companies in Iowa. They are highly rated for offering broad coverage, top-notch customer service, and a variety of affordable options for business owners.
Searching for the best and most affordable business insurance can be frustrating and confusing. That’s why it pays to have an experienced insurance professional in your corner.
Find an independent insurance agent in Iowa now, and get one-on-one consultation and affordable options for the best coverage for your unique needs. Your agent will work with you free of charge, offering you a variety of options so you can make the best choice.
Small businesses in Iowa may need the following types of business insurance:
- Commercial general liability insurance
- Commercial property insurance
- Business interruption/loss of use insurance
- Workers’ compensation insurance
- Commercial vehicle insurance
- Commercial umbrella insurance
Business owners in Iowa may also need additional policies including professional liability insurance, equipment breakdown insurance, inland marine insurance, employment practices liability insurance, and more, to cover their unique risks.
You can try to save money on Iowa business insurance in the following ways:
- Bundle your coverage by purchasing a business owners policy (BOP) or any other type of packaged policy designed for your industry
- Implement best practices for safety
- Choose higher deductibles
- Pay annual premiums in full (many insurance companies offer a discount when you pay in full)
- Shop around to find the best prices on the coverage you need
A certificate of insurance is a document you obtain from your insurance company to prove you have business insurance. Certificates of insurance assure your clients that you have the right insurance before they agree to work with you. This can be very important in certain industries, such as construction.
Most insurance companies make it easy to request a certificate of insurance. You can usually request one directly from your insurance company by phone or online, or your independent insurance agent can handle it for you.