MoneyGeek ranked workers’ compensation insurance companies in Iowa based on factors like cost, customer satisfaction, speed of processing online quotes and financial stability. Based on our analysis, Pie is the top workers’ compensation insurer in the state.
Iowa state law requires most small businesses to have workers’ compensation insurance, which provides medical and wage benefits to employees who may suffer from injuries or illnesses related to work. It also offers employers protection against possible legal liabilities.
Best Workers’ Compensation Insurance in Iowa
Best Workers’ Compensation Insurance in Iowa
Our analysis shows that Pie offers the best workers’ compensation insurance in Iowa. This provider charges an average of $87 per month for coverage, although the exact cost you’ll pay will depend on multiple factors.
How was this MoneyGeek score calculated?
- Coverage costs an average of $87 per month
- Fastest online quote process
Pie is an insurance company specializing in providing coverage to small businesses and ranks as MoneyGeek’s top choice for a workers’ compensation insurance provider in Iowa. On average, this insurer provides the cheapest workers’ compensation insurance policies in the state. It also has the fastest sample quote process, only taking an average of 29 seconds to provide sample rates to customers.
However, compared to the other insurers we analyzed in the state, Pie’s financial stability rating is fairly low. Another possible cause for concern is the company’s high rate of complaints at the National Association of Insurance Commissioners (NAIC), which indicates you might face problems with customer service.
- Charges an average of $155 monthly for coverage
- Ranks third best for customer satisfaction
Nationwide is among the largest and most diversified insurance companies worldwide. In Iowa, it provides the second most affordable workers' compensation insurance for small businesses and has the third lowest rate of complaints at the National Association of Insurance Commissioners (NAIC), which indicates a reasonable level of customer satisfaction. The company's AM Best rating of A+ also indicates that it is capable of meeting its existing financial obligations with ease. However, Nationwide is the slowest when it comes to processing and providing online quotes, taking an average of 3 minutes and 24 seconds per request.
- Average cost of workers' compensation insurance is $228 per month
- Most financially stable company of those analyzed
biBERK, a Berkshire Hathaway Company, specializes in providing insurance solutions for small-business owners. Its A++ AM Best rating is as good as it gets, which highlights that this is a very financially secure company that can meet its ongoing financial obligation easily. biBERK is also the third-fastest company when it comes to providing online quotes, with each request taking an average of 1 minute and 25 seconds. Additionally, this company has a relatively low number of complaints with the NAIC, which bodes well for customer satisfaction. One aspect in which biBERK falls short is its pricing, given that it is the second most expensive insurer in the state.
- Provides coverage at a rate of $211 per month
- Ranks highest in Wisconsin for customer satisfaction
The Hartford is an investment and insurance company specializing in providing property, casualty, business, home and auto insurance. It has the lowest rate of complaints at the NAIC, which means it provides the best customer service in the state. Its AM Best rating of A+ indicates a solid level of financial stability, which means it won’t face problems in meeting its existing financial obligations.
Of those analyzed, this company is the second quickest to process online quotes, averaging one minute and 14 seconds per request. It offers the third-cheapest workers' compensation insurance in Iowa out of the six companies MoneyGeek evaluated.
- Charges an average of $246 per month for coverage
- Second-highest customer satisfaction score
Next has the second lowest rate of complaints at the NAIC of the workers’ compensation insurance providers we analyzed in Iowa, which indicates that it provides good customer service.
However, this insurer takes an average of 1 minute and 25 seconds to process online quotes. While that might not seem very long, it’s the fourth fastest of the six companies we evaluated. Its AM Best is also fairly low compared to other providers in the state. On average, Next offers the most expensive workers' compensation insurance in Iowa.
- Policies cost an average of $221 per month
- Solid financial stability rating
Thimble’s A+ rating from AM Best indicates that it is a financially strong provider capable of meeting its ongoing financial obligations without any problems. This company provides the third-most expensive workers' compensation insurance in Iowa, which does not bode well for affordability. It also has the second highest rate of complaints of any provider in the state, which means you may experience problematic customer service.
Cheapest Workers’ Compensation Insurance in Iowa
Pie offers the cheapest workers' compensation insurance in Iowa, charging just $87 per month for coverage. This cost is indicative of what businesses with 20 employees and annual payroll costs of $1,250,000 might pay. However, the actual price of your premiums will depend on factors like the number of employees you have and your payroll costs.
Pie deserves your attention if you’re looking for cheap workers' compensation insurance because it offers the most affordable coverage in Iowa. Getting coverage from this insurer costs an average of $87 per month or $1,035 per year. It is also the quickest insurer to provide online quotes. However, some possible drawbacks of Pie include customer satisfaction scores and less-than-perfect financial stability.
MoneyGeek ranked workers’ compensation insurance companies in Iowa based on average monthly costs; the corresponding table includes those rankings and sample rates for a business with 20 employees. However, remember that the most affordable option for you may vary depending on other factors.
Best Workers’ Compensation Insurance for Micro Businesses in Iowa
Nationwide provides the best workers’ comp insurance for micro businesses in Iowa, charging an average of $47 per month. A micro-business is typically one that has up to nine employees. While employee count affects how much your workers’ compensation insurance costs, payroll expenses tend to have a more significant impact on premium prices. Our sample rate for this category was obtained for a company with annual payroll costs of $312,500 and five employees.
Nationwide’s monthly average cost of $47 for workers’ compensation insurance is the second cheapest in this segment, making it a relatively affordable option. It has a solid AM Best rating, which indicates that it’s a financially stable company. This insurer also ranks as the third best in customer satisfaction. However, it takes the longest to process online quotes.
Best Workers’ Compensation Insurance for Midsize Businesses in Iowa
If you need workers’ compensation insurance for a business with 100 employees and have an annual payroll cost of $6,250,000, Pie is MoneyGeek’s top pick. This provider offers coverage at an average monthly cost stands at $378. Employee count has an effect on the actual cost, but annual payroll costs play a bigger role.
Pie charges an average of $378 per year to provide workers’ compensation insurance in Iowa, which makes it the cheapest insurer in this segment. It is also the quickest insurer to process online quotes. However, this company has the highest rate of complaints at the NAIC, indicating low customer satisfaction. Another possible drawback is the company’s relatively low financial stability.
How Much Is Workers’ Compensation Insurance in Iowa?
If you have a business with 20 employees, you’ll need to pay an average of $191 per month to get workers’ compensation insurance in Iowa. This is higher than the national average of $168 per month. The policy limits we’ve set are as follows:
- Total policy limit of $1 million (this is the maximum an insurer will pay to settle claims through the course of a policy’s term)
- Per accident limit of $1 million (this is the coverage limit that applies on each accident)
- Per employee limit of $1 million (this is the maximum amount an employee may claim through the course of your policy’s term)
The corresponding table highlights the average cost of workers’ comp insurance for businesses with 5, 20 and 100 employees. The main factors that affect the price of coverage are payroll costs and employee count.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Iowa
How much you need to pay to get workers’ compensation insurance depends on multiple factors, including payroll costs, employee count, employee class codes, claims history and state regulations.
Insurers typically price their workers’ compensation insurance policies based on every $100 of payroll costs, and businesses with higher payroll costs may expect to pay more than their counterparts with lower payroll costs. Businesses in Iowa paid $1.52 per $100 of payroll costs in 2022, which is more than most states.
Number of employees
Insurance companies tend to view businesses with more employees counts as riskier to insure than businesses with fewer employees, leading to higher monthly premiums for companies with greater numbers of employees.
Employee class code
Classification codes or class codes refer to the type of work employees perform and are based on the risks associated with the job. Insurers use these codes to price their policies per $100 of payroll. High-risk industries, such as construction and manufacturing, typically have higher premiums than low-risk businesses, like consulting and photofinishing.
If your business has filed workers’ compensation insurance claims in the preceding few years, you may expect to pay higher premiums than if you filed no claims at all. According to data from the U.S. Bureau of Labor Statistics, the private industry in Iowa witnessed 34,900 recordable workplace injuries and illnesses in 2021. Nationally, the private industry’s total recordable non-fatal cases stood at 2.6 million in the same year.
Do You Need Workers’ Compensation Insurance in Iowa?
Almost all businesses in Iowa are required to have workers’ compensation insurance. However, there are some exemptions, including LLC members, domestic employees who earn less than $1,500 in the 12 consecutive months preceding the injury and employees of agricultural exchange programs. Presidents, vice presidents, secretaries and treasurers of family farm corporations might also be exempt, as is the case with proprietors or partners actively engaged in business on a full-time basis.
Businesses that violate Iowa’s mandatory workers’ compensation insurance requirements may face civil and criminal penalties. For example, if the state charges you with a Class D felony, you may face the following consequences:
- Stop business operations
- Civil penalties
What Does Workers’ Compensation Insurance Cover in Iowa?
Workers’ compensation insurance provides benefits for employers and employees alike. From the perspective of a business owner, this coverage safeguards you from financial losses and litigation that may result from an employee’s work-related injury or illness. With workers’ compensation insurance in place, you don’t have to worry about paying steep medical bills or covering lost wages in any such scenario. In case a work-related injury or illness results in an employee’s death, this coverage also provides death benefits to their dependents.
The benefits of workers’ compensation insurance for employees include coverage for medical bills that result from work-related injuries or illnesses. This typically includes the cost of treatment, hospitalization, surgeries, medications and rehabilitation. Income replacement typically depends on the severity of a disability and whether it is temporary or permanent.
Workers’ Compensation Insurance Resources for Employees in Iowa
The Iowa Division of Workers' Compensation offers multiple resources for employees and claimants, and you may use this platform to file claims. Chapter 876 of the Iowa Administrative Code (IAC) makes it mandatory for claimants to eFile their claims using the department’s online portal. Employers may choose to eFile claims on behalf of their employees or guide them through the process. It is crucial that you file a claim soon after a work-related injury or illness comes to light.
Frequently Asked Questions About Workers’ Compensation Insurance in Iowa
If you’re looking for the best workers’ comp insurance in Iowa, reviewing answers to some commonly asked questions may help you make the best coverage choice for your business.
About Melissa Wylie
- Iowa Workforce Development. "Iowa Division of Workers’ Compensation." Accessed May 25, 2023.