NEXT is the best workers' compensation insurance provider in Iowa, with a score of 98 out of 100. The company offers an excellent mix of reliable customer service, very low workers' comp rates and extensive coverage selection. Pie and Nationwide are also strong options to consider.
Cheapest Workers' Comp Insurance in Iowa
Updated: June 4, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, Pie, Nationwide, biBerk and The Hartford are the best cheap workers' comp insurance providers in Iowa.
For most small businesses in Iowa, workers' compensation coverage costs around $840 per year or $73 per month.
Workers' comp insurance is required in Iowa for all companies with employees to cover expenses when employees sustain injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Iowa
| Next | 98 | $175 |
| Pie | 94 | $166 |
| Nationwide | 88 | $396 |
| The Hartford | 88 | $414 |
| biBERK | 87 | $417 |
| Thimble | 83 | $433 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
NEXT: Best Overall
pros
Very affordable rates
Excellent customer service reviews
Most flexible customer support
cons
Not the cheapest option in Iowa
COMPANY HIGHLIGHTS
While not the cheapest provider overall, NEXT is the best workers' comp provider in Iowa. It has the second lowest rates overall, averaging $175 monthly. NEXT also has a 4.7 out of 5 customer rating and covers 600,000+ clients and 1,300 business types. You can quickly access your certificate of insurance and enjoy 24/7 chat support.
How Much Is Workers' Comp Insurance in Iowa?
Depending on the size of your Iowa-based business, workers' comp rates range from $840 to $10,710 per year. However, this only represents software development companies. Your rates will vary widely depending on the number of employees, the risk of your industry, the work your employees do individually and your claims history.
| Larger small businesses | $895 | $10,710 |
| Businesses with five or less employees | $73 | $840 |
| Medium-size small businesses | $201 | $2,330 |
Factors That Impact Workers’ Compensation Costs in Iowa
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs, including the following: business type, location and payroll size.
Payroll costs
Businesses typically pay workers' compensation rates based on each $100 of payroll. A business with higher payroll costs pays a higher premium than one with lower payroll costs.
Number of employees
Companies with larger workforces typically experience higher rates of workplace injuries, leading to increased insurance costs.
Employee class code
Class codes categorize employee job functions and determine the premium rate per $100 of payroll. Industries with greater hazard exposure (such as construction, mining and manufacturing) have higher rates compared to lower-risk sectors like consulting, accounting and software development.
Previous claims
A history of workers' compensation claims can increase your premium due to the higher financial risk for insurers.
Iowa Workers' Comp Insurance: Buyer's Guide
Navigating business insurance is often a complicated task. We've broken down how to get the best workers' comp coverage, who needs it and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Iowa
Below are the best steps to take to get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
Before purchasing workers' compensation insurance, research your state's specific regulations since requirements and options vary significantly across jurisdictions. The appropriate coverage level depends on your industry type, company size and past claims experience, so consult with a business insurance agent to ensure you select the right amount of coverage for your organization's needs.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. Also, consider state-provided options and whether self-insurance is possible in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help make your decision.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers on equal terms to find the best deal. Prices vary depending on how you get quotes: by using online comparison sites or by speaking with an agent. Use different methods and contact various companies to gain the most balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in Iowa?
All businesses in Iowa are required to carry workers’ compensation insurance. Sole proprietors, partners and corporate officers who fully own a corporation can choose to be excluded from this insurance.
WORKERS’ COMP PENALTIES IN IOWA
Employers in Iowa should be aware that not following workers' compensation insurance laws can lead to serious consequences. Here's what could happen if you don't comply:
- Criminal Penalties:
- Class D felony for willfully and knowingly failing to carry workers' compensation insurance
- Up to five years in prison
- Fines between $750 and $7,500
- Civil Penalties:
- Loss of exclusive remedy protection, making employers liable for full tort damages if sued by injured employees
- Assessment of up to $1,000 payable to the Second Injury Fund for not properly filing employee injury reports
- Assessment payable to the Second Injury Fund for habitually failing to begin paying weekly benefits within 11 days
- Award to employees of up to 50% additional benefits for delaying or denying weekly benefits
- Additional Consequences:
- Injured employees can choose to proceed in civil court rather than under workers' comp laws
- Full liability for medical bills, lost wages and other damages under tort law
What Does Workers’ Compensation Insurance Cover in Iowa?
Workers' compensation insurance provides vital benefits to employees experiencing work-related injuries or illnesses. This coverage usually encompasses medical care, disability benefits and lost wages for affected workers, paying out 70% of spendable earnings (the pay remaining after taxes) according to Iowa law. This not only safeguards employees but also protects the business against potential legal claims associated with workplace injuries or illnesses.
Best Workers' Compensation Insurance Iowa: Bottom Line
In Iowa, the top three workers' comp insurance providers are NEXT, Pie, and Nationwide. While these companies are our recommendations, compare rates yourself and consult similar businesses in your industry to get the best deal.
Workers' Comp Insurance in Iowa: FAQ
Below are answers to frequently asked questions about Iowa workers' comp insurance from our MoneyGeek experts.
Which company has the best workers’ compensation insurance in Iowa?
In Iowa, NEXT is the best workers’ compensation insurance provider, with competitive pricing (averaging around $175 per month) and a low complaint index. However, selecting the best insurance for your needs will depend on various factors, including your industry, the size of your workforce and specific state requirements.
Does Iowa require businesses to have workers’ compensation insurance?
In Iowa, businesses are required to carry workers' compensation insurance. However, individual owners, partnership members and fully owning corporate officers can choose to exclude themselves.
How much does workers’ compensation insurance cost in Iowa?
In Iowa, a mid-sized small business with around 20 employees typically pays a monthly workers' compensation insurance cost of $201.
How We Rated Workers' Comp Insurance Companies in Iowa
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT. "Customer Reviews." Accessed June 3, 2025.