Best General LiabilityIowaTo find the best general liability insurance in Iowa, MoneyGeek looked for a company that combines critical factors like pricing, customer satisfaction and financial stability. Our analysis found that Nationwide is the state's best general liability insurance provider.
Nationwide is also Iowa's cheapest general liability insurance company for small businesses. It charges $35 per month for LLCs with 20 employees and $18 for sole proprietors with no employees.
Best General LiabilityIowaBest General Liability Insurance in Iowa
Best Overall - Nationwide
Cheapest - Nationwide
Best for Employers - Nationwide
Best for Sole Proprietors - Nationwide
Best Overall General Liability Insurance in Iowa
MoneyGeek determined that Iowa’s top general liability insurance provider is Nationwide, with an outstanding MoneyGeek rating of 98 out of 100.
Look at the table below to view the companies analyzed by MoneyGeek for this study so that you can compare their rankings, pricing and MoneyGeek scores for yourself.
How was this MoneyGeek score calculated?
Best OverallScore: 98
5/5LLC Affordability
5/5Sole Proprietor Affordability
5/5Customer Satisfaction
4/5Financial Stability
3/5Online Quote Process
PROS
Most affordable insurer for LLCs and sole proprietors
Exceptional customer service
Strong financial stability
CONS
Slow online quotes service
Company Highlights
Nationwide is our top pick for general liability insurance in Iowa, thanks to its excellent ratings across our metrics. It combined affordability and customer service excellence to outrank all of its competitors.
It earned the lowest customer complaint index among all the general liability insurers in our study, despite its relatively inefficient online quote service. It also obtained an A+ rating from AM Best, implying a robust financial backing to settle policyholders’ claims reliably.
Cheapest General Liability Insurance in Iowa
General liability insurance from Nationwide is the least expensive provider for businesses in Iowa, costing only $18 per month for sole proprietors and $35 per month for LLCs with 20 employees.
We averaged the providers’ affordability scores for sole proprietors and LLCs to get an appropriate overall ranking. The winner may not always be the cheapest in both business types — although, in this case, it is.
How was this MoneyGeek score calculated?
CheapestScore: 100
5/5LLC Affordability
5/5Sole Proprietor Affordability
5/5Customer Satisfaction
4/5Financial Stability
3/5Online Quote Process
PROS
Most affordable general liability insurance for LLCs and sole proprietors in Iowa
Rated A+ by AM Best for financial stability
CONS
Slowest online quotes service
Company Highlights
Nationwide is Iowa’s cheapest general liability insurance provider, whether you have an LLC or are a sole proprietor without employees. On average, it costs $415 per year for LLCs with 20 employees and $213 per year for sole proprietors.
Policyholders can rest easy knowing Nationwide has an A+ rating from AM Best for its financial standing, meaning that it’s unlikely this company will go under and not make good on its claims obligations.
Best General Liability Insurance for Employers in Iowa
Nationwide provides companies with the most affordable general liability insurance in Iowa, with an average monthly premium of $35. It received an almost perfect score of 99 out of 100 from MoneyGeek. The average monthly premium for LLCs with 20 employees was the basis for our rankings in this category.
The quantity of employees significantly impacts the cost of general liability insurance. A firm with less than 20 employees typically pays less than the average premium, while companies with more employees will pay more.
How was this MoneyGeek score calculated?
Best for EmployersScore: 98
5/5LLC Affordability
5/5Customer Satisfaction
4/5Financial Stability
3/5Online Quote Process
PROS
Cheapest general liability insurance for LLCs
Excellent customer service
Strong financial standing
CONS
Inefficient online quotes system
Company Highlights
Nationwide is the top general liability insurance company for employers in Iowa due to its low prices, excellent customer service and strength of its financial backing. The average monthly insurance premium for LLCs with 20 employees is $35.
In addition to affordable policies, the few customer complaints received by Nationwide demonstrate that this provider often satisfies the expectations of its policyholders, giving them peace of mind. Paying claims is also not a problem because of Nationwide's solid financial position.
Best General Liability Insurance for Sole Proprietors in Iowa
In Iowa, Nationwide offers the best general liability insurance for sole proprietors without employees at an average monthly premium of $18. MoneyGeek gave it a score of 98 out of 100.
We based our ranking for this group on the average general liability rates for sole proprietors. However, your insurance costs might be higher than average if you operate in a risky sector like construction.
How was this MoneyGeek score calculated?
Best for Sole ProprietorsScore: 98
5/5Sole Proprietor Affordability
5/5Customer Satisfaction
4/5Financial Stability
3/5Online Quote Process
PROS
Offers the most affordable general liability rates for sole proprietors
Low rate of customer complaints
Strong financial stability
CONS
Slower online quoting system relative to competitors
Company Highlights
MoneyGeek found that Nationwide offers the most affordable general liability insurance for sole proprietors in Iowa, at an average of $18 monthly or $213 annually.
Nationwide's A+ rating from AM Best demonstrates that it has the financial capacity to cover claims from sole proprietors. Its customer-to-complaint ratio is scant compared to other insurers, which indicates that it can satisfy the claims of the policyholders it serves. Its online quoting system is not the fastest, though, making it harder to compare quotes.
Do You Need General Liability Insurance in Iowa?
Although Iowa doesn’t mandate general liability insurance, we still recommend that businesses invest in these policies. This coverage can prevent you from losing significant money if your company gets sued by a third party.
General liability insurance covers bodily injury of a third party to which your business is liable, damages to others’ properties that your business caused and liability related to various offenses like copyright infringement, slander and libel.
These policies cover medical costs for accidents on your business premises and include the general public. General liability insurance also handles your defense and legal fees resulting from legal action against your business.
Unlike commercial auto insurance, states generally don’t require general liability insurance. However, businesses within specific industries might need this coverage for closing a contract or getting a license.
In Iowa, businesses with any number of employees (except for LLC members, agricultural exchange employees and domestic employees earning less than $1,500) are obligated to carry business insurance, specifically workers' compensation. Moreover, commercial auto insurance for company-owned cars must have the following minimum liability limits:
- $20,000 per person
- $40,000 per accident for bodily injury
- $15,000 for property damage
This insurance covers accidents that occur while using a business vehicle.
SMALL BUSINESS RESOURCES IN IOWA
Iowa offers IEDA (Iowa Economic Development Authority) programs for small business owners. It provides companies with information about federal funding, legal requirements for Iowa businesses and assistance for small businesses owned by women, veterans, minorities or individuals with disabilities.
How Much Is General Liability Insurance in Iowa?
In Iowa, the average cost of general liability insurance for LLCs with 20 employees is $52 per month, compared to $25 for sole proprietors with no employees.
We based these premiums on a policy with a $0 deductible, a $1 million occurrence limit and a $2 million aggregate limit. The occurrence limit defines the maximum amount an insurer will pay per claim, whereas the aggregate limit represents the highest amount an insurer will pay out for claims throughout the policy period. The deductible is the amount policyholders must pay out of pocket before their insurance kicks in.
Factors That Impact General Liability Insurance Costs in Iowa
Several factors affect how much general liability insurance will cost for your company. We’ve detailed the major considerations below:
Policy limits
The higher the policy limits you choose, the more you will have to pay for coverage. General liability insurance covers the aggregate limit (maximum coverage amount per policy period) and the occurrence limit (maximum coverage amount per claim).
Number of employees and payroll costs
More employees and higher payroll costs also increase general liability insurance rates. Our analysis showed that LLCs in Iowa pay a yearly average of $623, while sole proprietors without employees pay $302.
Business location
The physical location of your business also affects your premiums. Companies operating in an area with dense populations are more likely to pay higher premiums than those in rural areas. Being in a busier area makes you statistically more likely to submit claims.
Claims history
Businesses with prior claims history are considered risky customers by general liability insurance providers. Insurers usually charge higher rates for these companies than companies that have never filed a claim.
Industry
The industry your business belongs to also determines how much your general liability insurance will cost. For instance, a high-risk industry like construction tends to have higher premiums than those with less hazardous work.
Frequently Asked Questions About General Liability Insurance in Iowa
Here are some answers to the most frequently asked questions regarding general liability insurance in Iowa to help you find the best provider.
About Melissa Wylie
sources
- Iowa Economic Development Authority. "Small Business Resources." Accessed May 11, 2023.