Iowa Workers’ Compensation Laws

An A-Z guide on everything you need to know before you purchase an Iowa Workers' Comp Insurance Policy

Iowa workers’ compensation laws state that if you have one employee, you must provide workers’ compensation. It’s essential to be aware of the nuances of the requirements in this state and follow all the rules to avoid penalties and other consequences.

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1

employee

Workers related to the business owner do not need to be covered by a policy.

Employees who earn less than $1,500 a year don't need a to be covered by a policy.

Is workers’ comp insurance required in Iowa?

Any business with one or more employees must have workers’ compensation insurance.

Do you need workers’ compensation coverage if you’re self-employed?

No, you aren’t required to have workers’ compensation as a sole proprietor or other self-employed person. However, if you have employees, you will need coverage for them. In addition, while coverage for self-employed professionals is not mandatory, you can sign up for it anyway. This may be a good idea if you want the protection afforded by this type of insurance policy.

Who is exempt from Iowa workers’ comp requirements?

Proprietors, limited liability partners, company members, and partners can choose not to purchase worker’s compensation or employers’ liability insurance coverage. 

In addition, employees who earn less than $1,500 a year and casual employees who work for purposes other than business are exempt. Workers related to the business owner do not need to be covered by workers’ compensation insurance.

How much is workers’ comp coverage in Iowa?

Your Iowa workers’ comp rate will depend on the following factors:

  • The type of business you have
  • The size of your payroll
  • Your safety record
  • Claim history
workers comp policy cost

How can Iowa small business owners save money on workers' comp?

A few ways to save money are:

How does workers’ comp work in Iowa?

The basic idea is that you get quotes from several insurance companies, so you have a few options to pick from. 

Once you select a company and policy, you pay the premium and are covered for the next 12 months. Your policy is based on what you estimated as your annual payroll. 

After the term, the payroll will be audited to see how accurate it was. If you overpaid, you’ll get a refund. If you are underpaid, you’ll receive a bill.

What does workers’ comp cover in Iowa?

Workers who file a workers' comp claim in Iowa can receive benefits for the following:

workers comp covers medical bills

Medical bills

workers comp covers lost wages

Lost Wages

Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.

How to get workers’ comp insurance in Iowa?

You can get a quote and buy a policy from any commercial insurance agent in Iowa. 

You can also get a policy from some online agencies like Kickstand Insurance. If you are ready, get started with a quick and easy quote.

What can happen if I don’t have workers’ comp insurance in Iowa?

The consequences of not having workers’ compensation insurance in Iowa can be steep. There are both criminal and civil penalties to be aware of. 

Willfully failing to provide coverage can lead to a potential felony conviction with up to $7,500 in fines and five years in prison.

In addition, failing to provide coverage means being liable for damages if an injured or ill employee sues the business.

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FAQS

What are workers’ comp death benefits in IA?

The spouse and children of a deceased worker may receive death benefits in Iowa. If there are none, other people who can show dependency may be eligible for death benefits. 

For the burial portion of the benefits, up to $10,587 is provided. In addition, up to 80% of a worker’s net weekly wages can be paid out. The weekly minimum is $308, while the maximum is $1,765.

No limits exist on dependency benefits in Iowa. However, remarrying or dying will stop benefits for a spouse. 

Children will get benefits until 18 or 25 if they are a student. Benefits may be provided longer for disabled children.

How do workers’ comp settlements work in IA?

In Iowa, settlement compensation may be provided as payments or a lump sum. However, payments are the most common option. 

The Workers’ Compensation Commissioner can make decisions about settlements. For example, they might allow two lump sum payments for commutations and other similar situations.

What are the statutes of limitations regarding workers’ comp in IA?

There is a two-year statute of limitations for workers’ compensation claims if the worker doesn’t receive weekly benefits within two years of injury. 

However, if they receive those benefits, this timeline moves to three years from the last payment. Filing after the deadline may result in not getting benefits.

How do I get a workers’ comp insurance policy with Kickstand Insurance?

Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!

Learn more about Workers' Comp in Iowa

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Why use Kickstand to
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Unlike other online insta-quote systems,
here your quote is reviewed by experts

Why does it matter?

  • Avoid surprise bills at audit
  • Make sure all your employees are properly covered
  • Protect yourself from lawsuits

What do we check?

  • Business categorized correctly
  • Employees job roles
  • Special discount opportunities
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