The Hartford tops our analysis of Iowa business insurance providers because of its strong customer service and comprehensive coverage. NEXT and Simply Business are also reliable options for small business owners across the state.
Business Insurance in Iowa
The Hartford tops our Iowa business insurance rankings with a MoneyGeek score of 4.66 out of 5.
Find affordable coverage that protects your small business in Iowa below.
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Updated: August 25, 2025
Advertising & Editorial Disclosure
Key Takeaways
Small business owners can get the best business insurance in Iowa from The Hartford, NEXT and Simply Business.
The best business insurance in Iowa depends on your industry risks, employee count and preferred coverage limits.
To find the best coverage, assess your risks, compare multiple quotes, research provider service quality and maximize available discounts.
Best Business Insurance Companies in Iowa
| The Hartford | 4.66 | 1 | 2 | 3 |
| NEXT | 4.64 | 4 | 1 | 2 |
| Simply Business | 4.51 | 3 | 5 | 1 |
| Nationwide | 4.49 | 6 | 2 | 4 |
| Coverdash | 4.43 | 5 | 6 | 2 |
| biBerk | 4.40 | 8 | 2 | 5 |
| Progressive Commercial | 4.34 | 3 | 7 | 5 |
| Thimble | 4.34 | 2 | 8 | 5 |
| Hiscox | 4.28 | 7 | 4 | 6 |
| Chubb | 4.27 | 9 | 3 | 4 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best by Coverage Type
The Hartford tops our analysis as Iowa's best provider for general liability coverage and business owner's policies (BOP). NEXT offers the best professional liability insurance, while The Hartford and NEXT tie for workers' compensation coverage.
| Business Owners Policy | The Hartford | 4.67 |
| General Liability | The Hartford | 4.64 |
| Professional Liability (E&O) | NEXT | 4.75 |
| Workers Compensation | The Hartford | 4.62 |
| Workers Compensation | NEXT | 4.62 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best Iowa Small Business Insurance Reviews
Our research identified the top three business insurance providers in Iowa based on coverage options and value. Here's what makes each company stand out for comprehensive protection and competitive rates.
The Hartford
Best for Affordability
MoneyGeek Rating
4.7/ of 5
4.7/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Monthly Cost of General Liability Insurance
$102This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$69This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.9/5Our Survey: Likely to Be Recommended to Others
4.8/5
NEXT
Best for Affordability
MoneyGeek Rating
4.6/ of 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Monthly Cost of General Liability Insurance
$98This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$65This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.9/5Ranked #4 nationallyOur Survey: Likely to Be Recommended to Others
4.8/5Ranked #1 nationally
Simply Business
Best for Coverage Availability
MoneyGeek Rating
4.5/ of 5
4.5/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Monthly Cost of General Liability Insurance
$91This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$67This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.7/5Our Survey: Likely to Be Recommended to Others
4.2/5
Cheapest Business Insurance Companies in Iowa
The Hartford provides the most affordable business insurance in Iowa at $80 monthly ($962 annually). Thimble and Simply Business round out the top three budget-friendly options with rates of $89 and $92 per month. Compare rates and coverage options from these providers and others in the table below.
| The Hartford | $80 | $962 |
| Thimble | $89 | $1,071 |
| Simply Business | $92 | $1,100 |
| Progressive Commercial | $94 | $1,130 |
| NEXT | $95 | $1,143 |
| Coverdash | $96 | $1,153 |
| Nationwide | $96 | $1,157 |
| biBerk | $100 | $1,196 |
| Hiscox | $103 | $1,234 |
| Chubb | $112 | $1,343 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest General Liability Insurance Companies in Iowa
The Hartford offers the cheapest general liability coverage in Iowa at $78 monthly. Simply Business ranks second with a $91 monthly rate. You can compare all provider rates for general liability insurance in the table below.
| The Hartford | $78 | $933 |
| Simply Business | $91 | $1,093 |
| Nationwide | $92 | $1,108 |
| Progressive Commercial | $95 | $1,142 |
| NEXT | $98 | $1,177 |
| Coverdash | $98 | $1,181 |
| Thimble | $102 | $1,226 |
| Hiscox | $109 | $1,304 |
| biBerk | $109 | $1,305 |
| Chubb | $113 | $1,357 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Professional Liability Insurance Companies in Iowa
The Hartford offers the most affordable professional liability insurance (E&O) at $68 monthly ($816 annually). NEXT provides another budget-friendly option for Iowa businesses.
| The Hartford | $68 | $816 |
| NEXT | $69 | $827 |
| Progressive Commercial | $71 | $856 |
| Thimble | $72 | $864 |
| Simply Business | $72 | $866 |
| Hiscox | $74 | $885 |
| Coverdash | $74 | $888 |
| biBerk | $75 | $906 |
| Nationwide | $78 | $941 |
| Chubb | $84 | $1,010 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability/errors and omissions policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Workers’ Comp Insurance Companies in Iowa
NEXT offers the cheapest workers' comp coverage in Iowa at $65 monthly ($785 annually). The Hartford and Thimble offer similarly competitive rates, making all three excellent choices for cost-effective business coverage.
| 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 are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest BOP Insurance Companies in Iowa
The Hartford offers the cheapest BOP rates in Iowa at $109 per month ($1,307 annually). Business owners can also find affordable BOP insurance through Thimble, Simply Business and Nationwide.
| The Hartford | $109 | $1,307 |
| Thimble | $116 | $1,392 |
| Simply Business | $136 | $1,633 |
| Nationwide | $138 | $1,656 |
| Progressive Commercial | $142 | $1,705 |
| Coverdash | $143 | $1,715 |
| biBerk | $143 | $1,715 |
| NEXT | $149 | $1,784 |
| Hiscox | $161 | $1,932 |
| Chubb | $170 | $2,035 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP policies. Survey results reflect limited sample data and may not represent all available rates in your area.
How Much Does Business Insurance Cost in Iowa?
Business insurance in Iowa costs between $70 and $141 monthly, with workers' compensation being the most affordable and business owner's policies the most expensive. Rates vary based on the coverage type your business needs.
| BOP | $141 |
| General Liability | $99 |
| Professional Liability (E&O) | $74 |
| Workers Comp | $70 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cost of Business Insurance by Industry and Coverage
Business insurance costs in Iowa vary widely based on industry and coverage types. Our analysis shows speech therapists pay just $6 monthly for workers' compensation, while pressure washing businesses pay $1,273 monthly for a business owner's policy.
Data filtered by:Results filtered by:
Select
Coverage Type:Business Owners Policy
Select
Industry:Accountants
| Accountants | Business Owners Policy | $31 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
What Factors Influence My Costs?
Your Iowa business insurance premiums may be higher than expected. Here are the key factors that determine your insurance costs:
Industry Risk Level
Your business type drives your insurance costs more than any other factor. Iowa's construction companies often pay $500 or more monthly for coverage, while consulting firms might pay just $50. This difference reflects the much higher accident risk on construction sites than in office environments.
Geographic Location and Weather Risks
Iowa businesses face unique weather challenges that affect insurance rates. According to NOAA data, the state averages 48 tornadoes annually, putting businesses at higher risk for property damage. These severe weather patterns, combined with frequent thunderstorms and flooding, make location a major factor in your insurance costs.
Business Size
Your workforce size directly impacts insurance costs. A manufacturing plant with 50 employees pays substantially more than a small retail shop with five workers. This reflects both higher payroll amounts for workers comp insurance and increased liability exposure from more customer interactions.
Claims History
Your claims record follows your business for three to five years and shapes what you pay for coverage. Filing multiple claims can double your premiums, while maintaining a clean record often leads to discounts. Insurance companies look at both the number and size of past claims when setting rates.
Coverage Types and Limits
Your coverage choices impact your costs. Basic liability coverage costs less than comprehensive protection. A business owner's policy saves money by bundling property and liability coverage, while specialized coverage like cyber insurance adds to your total cost.
Years in Business
New Iowa businesses pay more for coverage until they build a track record. Insurance companies reduce rates after three to five years of claims-free operation. This reflects the statistical tendency for established businesses to have better risk management practices.
Professional Certifications
Safety certifications and professional licenses can reduce your insurance costs. Iowa contractors with OSHA safety certifications often qualify for lower rates. Industry-specific credentials show insurers you follow best practices to prevent losses.
Iowa Business Insurance Buying Guide
Getting business insurance can feel overwhelming when you're focused on running your business. Our guide helps Iowa business owners like you understand and secure the coverage you need.
What Coverage Is Required?
We've thoroughly researched Iowa's business insurance requirements to save you time. Check out our detailed breakdown of coverage requirements in the section below.
Workers' Comp
In Iowa, businesses with one or more employees (full-time, part-time, seasonal or temporary) are required to carry workers' compensation insurance, with limited exceptions. Sole proprietors and partners actively engaged in a business full-time are typically exempt from workers' comp coverage. Members of a limited liability company (LLC) are also generally exempt. Independent contractors don't need coverage. Additionally, up to four corporate officers (president, vice president, secretary and treasurer) can exempt themselves from workers' comp, but they must file a rejection form with Iowa Workforce Development.
Commercial Auto Insurance
All business-owned or leased vehicles in Iowa need commercial auto insurance. Iowa requires them to carry at least $20,000 per person, $40,000 per accident for injuries and $15,000 per accident for property damage. If employees use personal vehicles for business purposes, consider hired and non-owned auto coverage to protect your business from liability since personal auto policies usually exclude business use.
Unemployment Insurance Tax
Iowa employers must register with Iowa Workforce Development and pay unemployment insurance taxes within 30 days of hiring employees for the first time or acquiring an existing business. You become liable if you paid wages in any calendar quarter for service in employment. The liability is retroactive to the first quarter wages were paid. New employers are assigned a rate from rank 12 of the current tax table (not below 1.000%), while new construction employers get the rate from rank 21. Depending on the table in effect, tax rates vary from 0.000% to 9.000%, with rates updated annually.
What Coverage Do We Recommend?
Iowa keeps business insurance regulations minimal, leaving you to make smart coverage choices for your company. Here's our analysis of the best coverage options for the state's leading industries:
Food | General liability, product liability, commercial property, equipment breakdown, business interruption, contamination coverage, recall coverage, derecho coverage, flood coverage, workers' compensation | Iowa food processors handle corn, soybeans, pork, and beef with massive contamination liability and recall exposure. Derecho windstorms can devastate facilities and crops, while flooding from multiple river systems creates contamination risks. |
Manufacturing | General liability, product liability, workers' compensation, commercial property, business interruption, environmental liability, derecho coverage, tornado coverage, supply chain interruption | Iowa manufacturers in machinery, renewable energy, and food equipment face derecho wind damage, tornado risks, and supply chain disruptions. Wind turbine manufacturing requires specialized product liability for renewable energy components. |
Construction/Contractor | General liability, workers' compensation, commercial auto, builder's risk, professional liability, derecho coverage, tornado coverage, flood coverage, wind energy project coverage | Iowa construction faces derecho wind damage, tornado risks, and flooding from Iowa River systems. Wind farm construction requires specialized coverage for renewable energy projects and elevated height operations with crane and turbine installation risks. |
Trucking | Commercial auto, cargo coverage, general liability, workers' compensation, severe weather coverage, agricultural transport coverage, grain dust explosion coverage, flood coverage | Iowa trucking companies transport agricultural products with specialized cargo risks including grain dust explosions and livestock transportation. Severe weather including derechos and flooding create elevated accident risks and cargo damage exposure. |
Veterinary | Professional liability, general liability, cyber liability, commercial property, large animal coverage, livestock disease coverage, emergency response coverage, severe weather preparedness | Iowa veterinarians serve extensive livestock operations with disease outbreak liability including African Swine Fever and Avian Influenza. Large animal emergencies during severe weather create elevated malpractice exposure and emergency response needs. |
How to Get the Best Cheap Business Insurance in Iowa
Running a small business in Iowa means watching every dollar. Here's how to secure reliable business insurance coverage while keeping your costs under control:
- 1
Assess Your Actual Risks First
Begin by evaluating real risks specific to your Iowa business operations. A Des Moines restaurant needs strong property and liability coverage, while a Cedar Rapids tech startup might focus on cyber liability and professional coverage.
- 2
Get Quotes from Multiple Insurers
Insurance rates vary significantly between providers in Iowa, even for identical coverage. Contact at least three insurance companies to compare rates and coverage options.
- 3
Choose Providers Based on Service Quality
Research each insurer's financial strength and claims handling reputation in Iowa. A Davenport manufacturing company needs an insurer with solid equipment breakdown coverage, while an Ames retail store wants quick response times for liability claims.
- 4
Maximize Available Discounts
Look for opportunities to bundle policies and implement safety programs to reduce costs. An Iowa City contractor could combine general liability with commercial auto insurance for better rates.
- 5
Review Coverage Annually
Your risks change as you grow, hire employees or add services. A small Waterloo retailer expanding to multiple locations needs updated property coverage, while a growing Council Bluffs service business might need increased liability limits.
Iowa Business Insurance: Bottom Line
Based on our analysis, The Hartford, NEXT and Simply Business are Iowa's best business insurance providers. However, what's ideal for you depends on your business risks and employee needs. Research each company's service quality, maximize discounts and select coverage that fits your budget.
Small Business Insurance in Iowa: FAQ
Small business owners in Iowa often have questions about choosing the right business insurance, so we gathered expert answers to the most common concerns.
What business insurance is required by law in Iowa?
Iowa requires workers' compensation insurance for businesses with employees. Commercial auto insurance is mandatory for business vehicles with minimum limits of $20,000/$40,000/$15,000. Licensed contractors must carry surety bonds.
How much does business insurance cost in Iowa?
Our analysis shows that business insurance costs in Iowa range from $70 to $141 monthly, depending on coverage. Workers' compensation is the most affordable at $70, while BOPs cost $141. Actual costs depend on your industry, business size and claims history.
Which company has the cheapest business insurance in Iowa?
The Hartford offers the lowest rates at $80 monthly in Iowa, with Thimble ($89) and Simply Business ($92) close behind. Always compare quotes since rates vary based on specific risks.
What business insurance do I need for my small business in Iowa?
Begin with general liability insurance to protect against customer injuries and property damage. Include workers' compensation for employees and commercial auto for company vehicles. Professional service firms need errors and omissions coverage, while retailers require property insurance.
What is the best business insurance company in Iowa?
The Hartford leads business insurance in Iowa with a MoneyGeek score of 4.66 out of 5. NEXT and Simply Business are also excellent choices. Compare multiple providers to secure coverage that matches your business requirements.
Do small businesses in Iowa need workers' compensation insurance?
Most Iowa businesses with employees must carry workers' compensation insurance. Limited exemptions exist for sole proprietors, partners and some LLC members. Most owners purchase coverage to protect against costly employee injury lawsuits.
What factors affect business insurance costs in Iowa?
Your industry impacts costs. Construction businesses pay higher premiums than retail stores. Location in Iowa affects rates, with flood-prone areas seeing higher costs. Employee count drives workers' comp premiums, and claims history influences rates, but safety programs help reduce costs.
How do I get cheap business insurance in Iowa?
Compare quotes from multiple insurers like The Hartford and NEXT. Bundle policies and implement safety programs to secure discounts while ensuring adequate coverage for your business needs.
What's the difference between general liability and errors and omissions (professional liability) insurance in Iowa?
General liability insurance covers property damage and physical injuries. Professional liability (E&O) insurance covers financial losses from service mistakes, poor advice or missed deadlines. Service businesses often need both types of coverage.
Can I get business insurance quotes online in Iowa?
Yes, online quotes are readily available from top Iowa business insurance providers. Complex businesses like contractors may need agent assistance for specialized coverage options.
How We Scored the Best Business Insurance Companies in Iowa
Small business owners in Iowa need reliable coverage that protects their operations without breaking their budgets. We designed our methodology to help Iowa entrepreneurs navigate challenges like severe weather risks and the state's optional workers' compensation laws.
We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.
- Affordability (50% of score): We analyzed premium costs across multiple carriers, comparing rates for similar coverage levels and deductibles. This heavily weighted factor reflects the importance of finding budget-friendly coverage.
- Customer experience (30% of score): Our evaluation included claims processing speed, customer service responsiveness and online account management tools. We called each insurer's service lines to test response times.
- Coverage options (15% of score): We examined policy customization options, including industry-specific endorsements and coverage limit flexibility. Special attention went to Iowa-specific needs.
- Financial strength (5% of score): We reviewed AM Best ratings and other financial stability indicators to ensure carriers can pay claims reliably.
This approach helps Iowa small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.
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
- Trustpilot. "NEXT." Accessed August 25, 2025.
- Trustpilot. "Simply Business US." Accessed August 25, 2025.
- Trustpilot. "The Hartford." Accessed August 25, 2025.
- National Centers for Environmental Information. "Billion-Dollar Weather and Climate Disasters." Accessed August 25, 2025.