Workers' comp rates in Iowa depend on your industry and team size. Find answers to common coverage questions below.
Best Workers' Comp Insurance in Iowa
With rates starting at $5 monthly, The Hartford, ERGO NEXT and Simply Business offer the cheapest and best workers' comp insurance in Iowa.
Get matched to top Iowa workers’ comp insurance providers and find your ideal coverage.
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Updated: January 22, 2026
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Best Iowa Workers' Comp Insurance: Fast Answers
What are the best and cheapest workers' comp insurance providers in Iowa?
ERGO NEXT offers the top cheap workers' compensation insurance in Iowa. The following are the state's cheapest and best workers' comp insurance providers and their average monthly rates:
- ERGO NEXT: $65
- The Hartford: $66
- Simply Business: $67
- Coverdash: $69
- biBerk: $71
Is workers' comp insurance required in Iowa?
Iowa mandates workers' comp insurance for most employers with employees, including part-time and seasonal workers. Exemptions include sole proprietors without employees, some agricultural workers and independent contractors. Violations can result in fines up to $1,000 per employee plus $100 daily penalties until compliance is achieved.
How much does workers' comp insurance cost in Iowa?
Workers' compensation insurance costs in Iowa run about $35 per employee monthly for a two-person business. Pricing varies based on your specific industry and payroll size. The most affordable coverage serves speech therapists at roughly $3 monthly per employee, while roofers face the steepest rates at approximately $396 per employee each month.
How do you get workers' comp insurance in Iowa?
You can get workers' comp coverage in Iowa by:
- Purchasing coverage from private insurance companies licensed to operate in Iowa
- Buying through the Iowa Workers' Compensation Division's assigned risk pool if standard market coverage isn't available
- Qualifying for self-insurance status by meeting the state's strict financial and operational requirements
Many business owners compare quotes online or through brokers to get the best rate and compliance support.
What does Iowa workers' comp insurance cover?
Workers’ compensation in Iowa covers:
- Complete medical treatment for workplace injuries and occupational illnesses at no cost to workers
- Wage replacement benefits covering a portion of lost income during recovery periods
- Permanent disability compensation for lasting impairments from job-related accidents
- Survivor benefits for families when workplace fatalities occur
Best Workers' Comp Insurance Companies in Iowa
ERGO NEXT leads our research for workers' comp insurance in Iowa, delivering responsive support and comprehensive policy options that cover diverse business needs. The Hartford and Simply Business rank as strong alternatives, providing reliable protection for small business owners across the state.
| ERGO NEXT | 4.62 | $65 | 1 | 2 |
| The Hartford | 4.62 | $66 | 2 | 3 |
| Simply Business | 4.54 | $67 | 5 | 1 |
| Coverdash | 4.47 | $69 | 6 | 2 |
| biBERK | 4.44 | $71 | 2 | 5 |
| Nationwide | 4.43 | $77 | 2 | 4 |
| Progressive Commercial | 4.41 | $68 | 7 | 5 |
| Thimble | 4.40 | $67 | 8 | 5 |
| Hiscox | 4.38 | $68 | 4 | 6 |
| Chubb | 4.26 | $81 | 3 | 4 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
Get Matched to Top Workers' Comp Insurers in Iowa
Select your industry and state to get a customized Iowa workers' comp quote from your top provider match.
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LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN IOWA
Explore the best business insurance providers in Iowa through our guides:
Best Iowa Workers’ Comp Insurance Company Reviews
We examined coverage options, pricing and customer service from top workers' compensation providers in Iowa.
ERGO NEXT
Best Workers' Comp Insurance in Iowa
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Workers' Comp Premium
$65We analyzed thousands of workers' compensation quotes from insurers operating in Iowa across 79 industriesWorkers' Comp Digital Experience Score
4.8/5 (1st)Rating from MoneyGeek's customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.8/5 (1st)Percentage of customers who would recommend this provider
The Hartford
Best Iowa Workers' Comp Insurance: Runner-Up
MoneyGeek Rating
4.6/ 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average Monthly Workers' Comp Premium
$66Based on average costs across multiple business typesWorkers' Comp Claims Process Score
4.5/5 (1st)Rating from MoneyGeek's customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.5/5 (2nd)Percentage of customers who would recommend this provider
Cheapest Workers' Comp Insurance Companies in Iowa
ERGO NEXT delivers the most affordable workers' comp insurance in Iowa at just $65 monthly ($785 annually), putting $5 back in your pocket each month compared to the state average of $70. This represents a solid 6% savings over typical rates across the Hawkeye State. The Hartford follows closely as your second-best option at $66 per month, while Thimble rounds out the top 3 cheapest carriers at $67 monthly. The table below shows costs from all companies we analyzed.
| ERGO NEXT | $65 | $785 |
| The Hartford | $66 | $791 |
| Thimble | $67 | $803 |
| Simply Business | $67 | $806 |
| Hiscox | $68 | $813 |
| Progressive Commercial | $68 | $815 |
| Coverdash | $69 | $829 |
| biBERK | $71 | $856 |
| Nationwide | $77 | $924 |
| Chubb | $81 | $967 |
How Did We Determine These Rates?
These rates represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.
Cheapest Workers' Comp in Iowa by Industry
Thimble offers the lowest workers' comp rates for dental practices at $10 monthly or $121 annually. Thimble leads pricing in 13 industries, excelling in welding, dental and construction sectors. The Hartford ranks second for affordability, delivering competitive rates across 25 industries, including auto repair, bakery and wholesale businesses.
| Accountants | Simply Business | $18 | $214 |
| Ad Agency | ERGO NEXT | $14 | $170 |
| Auto Repair | The Hartford | $134 | $1,605 |
| Automotive | ERGO NEXT | $101 | $1,213 |
| Bakery | The Hartford | $47 | $561 |
| Barber | ERGO NEXT | $12 | $147 |
| Beauty Salon | The Hartford | $13 | $156 |
| Candle | The Hartford | $37 | $440 |
| Bounce House | ERGO NEXT | $35 | $414 |
| Catering | ERGO NEXT | $63 | $753 |
| Cannabis | Nationwide | $87 | $1,041 |
| Coffee Shop | ERGO NEXT | $42 | $502 |
| Cleaning | Thimble | $43 | $511 |
| Computer Programming | The Hartford | $25 | $296 |
| Construction | The Hartford | $159 | $1,910 |
| Computer Repair | The Hartford | $21 | $255 |
| Contractor | Thimble | $146 | $1,756 |
| Consulting | The Hartford | $27 | $321 |
| Courier | Simply Business | $202 | $2,425 |
| Dental | Thimble | $10 | $121 |
| Daycare | Progressive Commercial | $12 | $142 |
| Dog Grooming | The Hartford | $58 | $699 |
| DJ | ERGO NEXT | $12 | $144 |
| Electrical | The Hartford | $51 | $607 |
| Drone | Thimble | $24 | $285 |
| Ecommerce | Thimble | $19 | $234 |
| Excavation | ERGO NEXT | $94 | $1,126 |
| Engineering | ERGO NEXT | $34 | $402 |
| Florist | The Hartford | $54 | $648 |
| Food Truck | Thimble | $40 | $480 |
| Food | ERGO NEXT | $37 | $445 |
| Funeral Home | ERGO NEXT | $23 | $281 |
| Handyman | The Hartford | $85 | $1,016 |
| Gardening | Thimble | $42 | $499 |
| Home-based | ERGO NEXT | $9 | $105 |
| HVAC | Progressive Commercial | $56 | $671 |
| Hospitality | ERGO NEXT | $61 | $729 |
| Jewelry | ERGO NEXT | $27 | $321 |
| Janitorial | ERGO NEXT | $44 | $523 |
| Junk Removal | ERGO NEXT | $125 | $1,496 |
| Lawyers | The Hartford | $47 | $565 |
| Lawn/Landscaping | ERGO NEXT | $33 | $401 |
| Marine | ERGO NEXT | $130 | $1,566 |
| Manufacturing | The Hartford | $52 | $619 |
| Mortgage Broker | ERGO NEXT | $12 | $148 |
| Massage | Progressive Commercial | $13 | $153 |
| Moving | The Hartford | $228 | $2,742 |
| Painting | The Hartford | $121 | $1,455 |
| Nonprofit | The Hartford | $28 | $337 |
| Personal Training | Thimble | $22 | $265 |
| Party Rental | ERGO NEXT | $32 | $384 |
| Pet | ERGO NEXT | $27 | $325 |
| Pest Control | ERGO NEXT | $61 | $727 |
| Photography | Simply Business | $15 | $179 |
| Pharmacy | Thimble | $6 | $67 |
| Physical Therapy | The Hartford | $6 | $72 |
| Pressure Washing | Nationwide | $87 | $1,050 |
| Plumbing | ERGO NEXT | $56 | $671 |
| Restaurant | The Hartford | $55 | $659 |
| Real Estate | ERGO NEXT | $26 | $315 |
| Roofing | Nationwide | $882 | $10,582 |
| Retail | The Hartford | $31 | $374 |
| Security | The Hartford | $46 | $550 |
| Software | ERGO NEXT | $23 | $274 |
| Snack Bars | The Hartford | $38 | $452 |
| Speech Therapist | The Hartford | $5 | $64 |
| Spa/Wellness | Simply Business | $15 | $184 |
| Tech/IT | ERGO NEXT | $24 | $292 |
| Startup | Thimble | $11 | $136 |
| Travel | Thimble | $6 | $74 |
| Transportation | ERGO NEXT | $203 | $2,439 |
| Wedding Planning | Simply Business | $25 | $303 |
| Tree Service | Simply Business | $195 | $2,339 |
| Trucking | Thimble | $239 | $2,863 |
| Tutoring | The Hartford | $9 | $105 |
| Veterinary | ERGO NEXT | $17 | $209 |
| Window Cleaning | ERGO NEXT | $186 | $2,226 |
| Welding | Thimble | $107 | $1,284 |
| Wholesale | The Hartford | $35 | $422 |
How Much Is Workers' Comp Insurance in Iowa?
Iowa's workers' comp insurance cost runs $70 monthly ($839 annually), coming in below the national average of $74. Costs vary by profession, with speech therapists paying just $70 annually ($35 per employee) while roofers face steep premiums of $9,498 yearly ($4,749 per employee).
| Accountants | $19 | $232 |
| Ad Agency | $15 | $181 |
| Auto Repair | $144 | $1,730 |
| Automotive | $111 | $1,331 |
| Bakery | $51 | $610 |
| Barber | $13 | $160 |
| Beauty Salon | $14 | $166 |
| Bounce House | $38 | $452 |
| Candle | $39 | $464 |
| Cannabis | $80 | $955 |
| Catering | $70 | $841 |
| Cleaning | $46 | $555 |
| Coffee Shop | $45 | $538 |
| Computer Programming | $27 | $323 |
| Computer Repair | $23 | $275 |
| Construction | $172 | $2,059 |
| Consulting | $29 | $344 |
| Contractor | $157 | $1,880 |
| Courier | $216 | $2,588 |
| DJ | $13 | $160 |
| Daycare | $13 | $153 |
| Dental | $11 | $129 |
| Dog Grooming | $62 | $744 |
| Drone | $26 | $307 |
| Ecommerce | $21 | $249 |
| Electrical | $55 | $655 |
| Engineering | $36 | $433 |
| Excavation | $101 | $1,213 |
| Florist | $58 | $700 |
| Food | $40 | $480 |
| Food Truck | $44 | $523 |
| Funeral Home | $25 | $304 |
| Gardening | $45 | $536 |
| HVAC | $60 | $725 |
| Handyman | $89 | $1,071 |
| Home-based | $10 | $114 |
| Hospitality | $66 | $796 |
| Janitorial | $47 | $559 |
| Jewelry | $29 | $344 |
| Junk Removal | $135 | $1,620 |
| Lawn/Landscaping | $36 | $430 |
| Lawyers | $50 | $604 |
| Manufacturing | $56 | $669 |
| Marine | $143 | $1,711 |
| Massage | $14 | $165 |
| Mortgage Broker | $13 | $160 |
| Moving | $247 | $2,968 |
| Nonprofit | $30 | $364 |
| Painting | $132 | $1,587 |
| Party Rental | $35 | $420 |
| Personal Training | $24 | $287 |
| Pest Control | $66 | $797 |
| Pet | $29 | $354 |
| Pharmacy | $6 | $72 |
| Photography | $16 | $195 |
| Physical Therapy | $7 | $78 |
| Plumbing | $61 | $733 |
| Pressure Washing | $79 | $946 |
| Real Estate | $28 | $341 |
| Restaurant | $60 | $725 |
| Retail | $33 | $399 |
| Roofing | $791 | $9,498 |
| Security | $50 | $599 |
| Snack Bars | $41 | $494 |
| Software | $25 | $300 |
| Spa/Wellness | $16 | $198 |
| Speech Therapist | $6 | $69 |
| Startup | $12 | $148 |
| Tech/IT | $26 | $312 |
| Transportation | $219 | $2,634 |
| Travel | $7 | $80 |
| Tree Service | $210 | $2,520 |
| Trucking | $255 | $3,058 |
| Tutoring | $9 | $114 |
| Veterinary | $19 | $226 |
| Wedding Planning | $27 | $323 |
| Welding | $113 | $1,352 |
| Wholesale | $38 | $460 |
| Window Cleaning | $199 | $2,389 |
Iowa Workers' Comp Insurance Cost Factors
These cost factors affect workers' compensation insurance rates in Iowa:
Higher Rates Than National Average
Rates in Iowa run roughly 20% higher than the national average, which means you'll pay more for coverage than businesses in most other states, even with identical industries and claims histories. The good news? Rates held steady or declined for nearly a decade before recent increases, so strategic shopping matters more than ever.
Iowa Allows Insurers to Offer Up to 25% in Discounts
Insurance companies can offer discounts and credits up to 25% beyond the standard NCCI rates. This flexibility means you have real negotiating power when shopping for coverage. Businesses with documented safety programs, clean claims records, or substantial payrolls can secure significant savings that simply aren't available in states with rigid rate structures. Always compare multiple quotes.
Payroll Minimums and Maximums for Owners
If you're including yourself in your workers' comp policy as an owner, Iowa has specific rules. You must use a minimum weekly rate of $550, which translates to $28,600 annually, and a maximum of $4,400, or $228,800 annually, for 2024. Even if you pay yourself less than $28,600, your premium calculates based on that minimum. On the flip side, if you earn more than $228,800, the cap protects you from excessive premiums.
Employers Control Medical Provider Selection
Unlike many states where injured workers choose their own doctors, Iowa lets you select the medical provider for workplace injuries, though employees can request alternative care through the Workers' Compensation Commissioner. This control helps you manage costs by steering employees to occupational health clinics or in-network providers with negotiated rates. Lower medical costs mean smaller claims, which improves your experience modification rate and reduces future premiums.
Weekly Disability Benefits Cap
Iowa limits weekly disability payments to 80% of an employee's earnings, with a maximum of $1,864 for injuries occurring between July 1, 2024 and June 30, 2025. This cap matters because it limits how much insurers pay per claim, which directly influences the rates they charge Iowa businesses. States with higher benefit caps see higher premiums. These annual adjustments reflect Iowa's statewide average weekly wage calculations.
Periodic Second Injury Fund Assessments
Iowa occasionally hits all workers' comp policies with special assessments to fund the state's Second Injury Fund. When the fund runs short, Iowa assesses insurers and self-insured employers to cover the gap, such as the $8 million assessment imposed in March 2025. Insurance companies pass these costs directly to policyholders as surcharges, creating premium increases you can't control through safety programs or claims management. These assessments are unpredictable and Iowa-specific.
How Much Workers' Comp Insurance Do I Need in Iowa?
Iowa law doesn't set specific coverage amounts. Your required workers' compensation coverage must provide unlimited medical benefits and wage replacement equal to 80% of weekly earnings, capped at $1,864 for injuries between July 1, 2024 and June 30, 2025. Coverage amounts depend on your payroll and industry classification codes, with premiums calculated per $100 of payroll.
Willfully operating without coverage is a Class D felony under Iowa Code Chapter 87, punishable by up to five years in prison and fines between $750 and $7,500. You also lose legal protections, allowing injured employees to sue for full damages in civil court.
Iowa Workers' Comp Insurance Exemptions
While you're required to have coverage in Iowa, some business categories are exempt from workers' comp requirements:
- Low-earning employees (under $1,500 annually): Household workers, casual laborers and domestic employees who earn less than $1,500 from your business in the 12 months before an injury don't need coverage.
- Agricultural workers and operations: Farm operations with total cash payroll under $2,500 annually are exempt, along with agricultural family members and workers trading labor with other farms.
- Corporate and farm corporation officers: Up to four corporate officers (president, vice president, secretary, treasurer) can opt out by filing paperwork with Iowa Workforce Development, while family farm corporation officers get broader exemptions covering their spouses and extended family members.
- Police officers and firefighters with pension coverage: Officers and firefighters already receiving benefits through Iowa pension funds (Code chapters 410 and 411) don't need additional workers' comp coverage.
- Business owners and partners: Sole proprietors, self-employed individuals, business partners and LLC members working full-time in their own businesses are exempt but can buy coverage to protect themselves.
- Executive officers with significant ownership: Corporate executive officers who own at least 25% of your company's common stock are automatically exempt from coverage requirements.
- Independent contractors and federal employees: Self-employed workers you hire as true independent contractors don't need your coverage, and federal employees already have their own compensation programs.
FEDERAL WORKERS' COMP PROGRAMS OVERRIDE STATE REQUIREMENTS
Workers covered by federal compensation programs don't need Iowa workers' comp insurance. This includes federal government employees under the Federal Employees' Compensation Act (FECA), railroad employees protected by the Federal Employers' Liability Act (FELA), and maritime workers like longshoremen under the Longshore and Harbor Workers' Compensation Act. Independent contractors and unpaid volunteers also fall outside Iowa's requirements since state law doesn't classify them as employees.
How to Get the Best Workers' Comp Insurance in Iowa
Here's how to get workers' comp insurance with the right provider at the best price.
- 1Determine if you need workers' comp coverage in Iowa
Check Iowa's exemption rules first. Sole proprietors, LLC members and business partners working alone don't need coverage. Add one employee and that changes. Iowa evaluates independent contractor status closely, so workers you consider contractors might legally qualify as employees requiring coverage under state law.
- 2Gather your business information
Pull together your employee count, annual payroll totals and class codes for the work your team does. Iowa uses the National Council on Compensation Insurance (NCCI) classification system, which assigns codes based on job duties.
Getting these numbers right matters. Wrong payroll figures or mismatched class codes trigger audit adjustments costing thousands, or leave you uncovered when someone gets hurt. Construction and agricultural businesses face tricky classification issues in Iowa, so verify your codes before requesting quotes.
- 3Request workers' comp quotes from multiple carriers
Get quotes from three insurers minimum. Iowa doesn't run a state fund, which means you'll work with private carriers or self-insure after meeting requirements set by the Iowa Insurance Commissioner.
Comparing quotes directly affects your business insurance costs. Rates swing widely between carriers covering identical employees doing the same work. Insurers specializing in your industry often provide better pricing than generalists.
- 4Research providers with industry experience
Look past cheap business insurance rates to find carriers who know your industry risks. Manufacturing businesses need insurers familiar with machinery hazards and repetitive strain injuries. Healthcare operations benefit from carriers experienced with needlestick exposures and patient-handling claims common in medical settings.
- 5Evaluate your top provider options
Compare service quality and extra benefits each insurer provides to find the best business insurance provider for you:
- Review claim processing speed, customer ratings and complaint histories filed with the Iowa Insurance Division
- Confirm the insurer maintains an Iowa representative who knows state workers' comp laws and handles claims efficiently
- Ask about safety training, return-to-work programs and injury prevention resources included with coverage
- Find carriers delivering the best business insurance value through perks like round-the-clock claim reporting and dedicated account support
- 6Review and purchase your workers' compensation policy
Read policy documents thoroughly before signing. Focus on coverage limits, exclusions and Iowa-specific requirements. Consider pay-as-you-go workers' comp payment structures if your payroll fluctuates with seasons, which smooths cash flow instead of requiring large upfront deposits.
- 7Reassess before annual renewal
Review your coverage before each renewal. Check employee count changes, examine claims you filed and verify class codes still match your current operations.
Businesses change throughout the year. Hiring more staff, adding services or shifting your business model affects coverage needs and costs. Keep your insurer updated on these changes to maintain proper protection without overpaying for coverage you don't use.
Best Iowa Workers' Compensation Insurance: Bottom Line
ERGO NEXT, The Hartford and Simply Business rank as Iowa's top workers' comp insurers. Research each company's service quality, maximize discounts and select coverage that fits your budget.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
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