National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

Workers' Compensation Insurance Laws in Iowa

In Iowa, if you have one or more employees, you must carry workers' compensation insurance at the set state minimum limits or greater. If you're a sole proprietor, partner, or member of an LLC, you may exclude yourself from coverage. You can be included under workers' compensation coverage but file an exemption when you're a corporate officer. Consult with your local adviser for specifics on your situation and coverage options.

Common Workers' Compensation Claims in Iowa

The Top 5 industries with the most fatal occupational injuries, in order:

  1. Construction
  2. Transportation and warehousing
  3. Manufacturing
  4. Crop farming
  5. Landscaping

The Top 7 most reported fatal occupational injuries, in order:

  1. Violence and other injuries by persons or animals
  2. Transportation incidents
  3. Fires
  4. Falls, slips, trips
  5. Exposure to harmful substances or environments
  6. Contact with objects and equipment
  7. Overexertion and bodily reaction

According to statistical data, 58 workers' compensation claims turned fatal in one recent year. However, your workers' compensation insurance will usually help pay for funeral expenses when an employee passes due to doing work in your company.

FAQ: Workers' Compensation Insurance in Iowa

Iowa workers' compensation insurance is necessary when you have any employees. This policy helps pay for medical expenses and lost wages of an employee who becomes injured or ill as a result of doing their job. It protects the business financially and covers the employee. 

Each industry, job type, and business owner will have different premiums when it comes to workers' compensation insurance. Coverage will be rated within a range per job category. Check out some Iowa workers' compensation rates per industry below, per $100 of employer payroll:

IndustryLow CostHigh Cost
Auto Body Repair$1.82$2.37
Sales Professional$0.47$0.61
Clerical-Office Employee$0.21$0.27
Retirement Living Centers-Congregate Communities$2.35$3.06
Nursing Homes & Assisted Living Facilities$2.35$3.06

Yes. In Iowa, workers' compensation insurance is required for one employee or more. Coverage must meet state guidelines or more to be sufficient. 

Every workers' compensation policy will cover medical expenses and lost wages for employees that sustain injuries or illnesses on the job. The most common incidents that are covered under your Iowa workers' compensation policy are as follows:

  • Traumatic injuries
  • Repetitive injuries
  • Some mental or cognitive injuries
  • Occupational illnesses/diseases

Iowa workers' compensation insurance will not usually provide coverage for the following incidents:

  • Intentional injuries or illnesses
  • Injuries or illnesses sustained outside of work
  • Injuries or illnesses sustained while committing a crime
  • Injuries or illnesses sustained under the influence of drugs or alcohol

A certificate provides proof of insurance to the receiving party on your behalf. It will show your workers' compensation limits and expiration dates. A certificate can be obtained by your local independent agent.

When your business needs the best coverage for a fair price, an independent insurance agent can help. They quote your workers' compensation and other business policies with multiple markets at once, giving you options. Plus, they do the shopping for free, making it a no-brainer.

No. Workers' compensation benefits paid to your employee are not typically considered taxable income in the state of Iowa. Discuss your specifics with your tax professional. 

What Are the Best Workers' Compensation Companies in Iowa?