Business Insurance in Iowa
The Hawkeye State has 267,733 small businesses, accounting for 99.3% of all businesses in Iowa. They employ 648,541 (48.3 %) workers. Iowa's Small Business Administration offers coverage for Des Moines businesses, Iowa City businesses, Cedar Rapids businesses, and more. The Iowa companies have protected themselves for hundreds of years with company insurance.
Iowa law, administered by the Iowa Department of Insurance, requires that most employers have a reliable method of reporting workers' compensation benefits to eligible workers. An employer can obtain a workers' compensation policy through a private insurer or be self-insured by meeting the Iowa Insurance Commissioner's specific requirements. A workers' comp claim in Iowa resulting from employment activities may include any health condition other than those derived from physical labor. Employees with conditions or hearing losses may be eligible to receive benefits if they have work-related causes or are hurt by their job activities or environmental factors. Examples of businesses that get insured in Iowa are:
- Architecture & Engineering
- Commercial Maintenance
- Home Services
Types of Commercial Business Insurance Offered in Iowa
A small business insurance package in Iowa may include these coverages:
General Liability Insurance
Generally, small business insurance packages in Iowa should consist of General Liability Insurance coverage. General liability insurance helps pay for legal fees and damages if your business is blamed for errors in judgment causing harm to or losing another person's property. General liability coverage can help pay for legal costs and damages if you are declared responsible for an incident.
For instance, a pressure washing company based in Des Moines breaks windows when cleaning an office building. The company's general liability insurance will help pay for the expenses up to the policy limits and their deductible amount.
Cleaning and construction companies in Iowa can choose to add tools and equipment insurance to their general liability policy. This type of coverage can help pay for the replacement of equipment or tools if damaged or stolen.
All Iowa businesses should benefit from this policy. Most commercial leases necessitate this insurance for all businesses.
Workers’ Compensation Insurance
Companies based in the state of Iowa are legally required to have workers' compensation insurance. Sole proprietors, partners, and members of limited liability corporations may be subject to purchasing this policy to protect themselves in case of an accident.
Employees' compensation insurance enables workers who are harmed on the job to pay for the medical care they require. Iowa employees' comp coverage will also pay some of an employee's lost wages.
Commercial Auto insurance
Iowa stipulates that all drivers have a minimum $40,000 insurance policy to pay for medical expenses if they injure someone else in an accident. Personal insurance likely won't cover accidents in vehicles owned by the business. Since you run a company, commercial auto insurance coverage should be a part of your strategy in Iowa to cover mishaps that happen in company-owned automobiles.
Unless specifically required for your business, you may need more than your commercial automobile insurance policy to cover your employees driving on the job. Consider purchasing higher insurance limits if you want to make sure your budget covers it for your team.
If your company sometimes asks workers to rent or borrow vehicles for your business, consider obtaining a commercial auto insurance add-on called hired and non-owned coverage.
Professional Liability insurance
A professional mistake on your side could be costly for your business. You might be asked to repay expenses if you were held responsible for a failure to meet a deadline or incomplete work. A frivolous lawsuit may be added to your company.
The liability protection this coverage provides reduces the cost a small company has to pay when an incident like this enacts.
This insurance is also called errors and omissions insurance. It helps cover financial losses resulting from an instance of professional negligence.
Business owner’s policy
A business owner's policy (BOP) combines liability and property insurance into one convenient package. Typically, it’s less expensive than insuring the policies separately.
Small businesses most frequently need commercial general liability insurance and commercial property insurance when renting or owning an office or other space. In addition, customer contracts require general liability insurance.
Even when no coverage is required, a BOP is a relatively easy choice for businesses that primarily have public-facing assets and deal with customers. The policy helps prevent contractors from losing money from customer accidents and incidents like fires and burglaries.
Cyber liability insurance
Cyber insurance is often called cyber liability or cyber security insurance. It protects small businesses from the costs and repercussions of a data breach or cyberattack. This insurance policy helps cover expenses and penalties, including notification expenses, credit monitoring services, legal fees, and even acceptable costs.
Cyberattacks and data breaches are expensive, and many hackers target small firms. Small companies are easy targets for hackers. Sixty percent of small businesses fail within six months of a cyberattack.
Iowa Small Business Insurance Requirements
Specific state laws can affect whether you are legally mandated to carry business insurance policies. These state laws are required in any part of Iowa, from Des Moines to Davenport.
Workers' compensation insurance - The state of Iowa requires that companies with at least one worker, full-time or part-time, carry workers' compensation insurance. Independent contractors are not regarded as employees.
Workers' compensation plan covers typical risks, including customer injuries. The majority of commercial leases mandate this liability insurance.
Commercial auto insurance - All business-owned vehicles in Iowa must possess commercial auto insurance. This policy covers the cost of vehicle accidents that occur in the course of business operations. Iowa's auto liability insurance requirements are:
- $20,000 bodily injury liability per person
- $40,000 bodily injury liability per accident,
- $15,000 property damage liability per accident.
Trucking companies may need more coverage to meet standards.
Cost of Business Insurance in Iowa
Small business insurance in Iowa typically costs $45 per month. Although depending on your business model, the total cost of insurance in Iowa can vary. The total cost will depend on factors that include:
Considerable regular business risks: If your company is working in a high-risk industry, be prepared to pay more for insurance each month. Construction businesses in Iowa typically pay about $63 per month for insurance, while retail business owners pay a median of $25 per month for protection.
How high your coverage is, including policy limits: For business insurance in Iowa, monthly rates will be generally lower if you take the minimum level of coverage or choose lower limits. However, this will only bring little savings to your business in the long run in a situation where there's a costly accident, and you must pay more to settle a claim yourself.
The number of workers: As in other states, premiums for small businesses in Iowa depend on the number of workers you have. When getting your headcount right, you'll be able to estimate your insurance premiums better.
Get a Quote For Iowa Business Insurance
If you need a quote for your Iowa business, please visit us at InsuranceAdvisor.com. Choose your state, then choose from General Liability, Commercial Property, Business Auto, and Workers’ Compensation insurance to answer the application questions. Once we receive your request, we will provide you with a quote as quickly as possible.
Why Choose Insurance Advisor for Commercial Insurance in Iowa?
We are licensed to provide insurance in Iowa and can provide quotes with different insurance carriers. You can request quotes for your business from the comfort of your home, office, or anywhere by visiting us at InsuranceAdvisor.com. Once you create an account, your business information is stored, and you can come back at any time to request quotes for other lines of insurance, get a certificate of insurance, and update your information.
Frequently Asked Questions (FAQ) about Iowa Business Insurance
1. How much is business insurance in Iowa?
Small business insurance in Iowa typically costs $45 per month. Small business owners in Iowa may rejoice to learn that commercial insurance is relatively affordable for them. Factors that can influence the cost are:
- Type of business and its risks
- Business operations and location
- Number of employees
- Types of insurance purchased
- Coverage options, such as deductibles
2. Where can I get inexpensive business insurance in Iowa?
The old saying, “You get what you pay for,” is very accurate with business insurance. If you want more incidents to be covered, you will pay more for insurance. The cheapest insurance is never the best insurance. Get more than one quote from the same or different agents so you can see how one insurance company’s rates compare to another’s. Always read the exclusions in the policy. This is where you find what is NOT covered. Get an affordable option with the most common mishaps likely to happen to your business insured and not listed under exclusions.
3. What types of business insurance are required for businesses in Iowa?
Iowa small business owners should consider seeking a business insurance policy to help protect their businesses from fiscal damage resulting from a crash or mishap. Recommended insurance policies for small businesses in Iowa are:
- General Liability Insurance
- Commercial auto insurance
- Cyber insurance insurance
- Business owners insurance
- Professional liability insurance
- Workers’ compensation insurance
4. Which insurance companies are best in Iowa?
An Iowa licensed commercial insurance agent will determine the best insurance company for your business. Insurance companies often specialize in specific business industries. Your independent insurance agent knows which carriers fit your company's needs. Visit us at InsuranceAdvisor.com to request a quote.
5. How to find out if a business has liability insurance in Iowa?
Contact your insurance company to ask for a free copy of their public liability certificate, which will provide you with the insurer's policy number and any related documentation. Call the insurance provider and ask for confirmation of the insurance's validity using the number given on the certificate.
6. What is the cost of essential business liability insurance in Iowa?
Average business liability insurance rates are usually about $42 per month. The liability for general business insurance is often estimated based on several elements, including:
- Amount of Coverage
- Industry and risk factors
- Number of employees