Workers' Compensation by state

Workers' compensation requirements in Iowa

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Does Iowa require workers' compensation insurance?

Yes. Iowa requires workers' compensation coverage once a business has one or more employees, under the Iowa Workers' Compensation Act. Iowa requires most employers with one or more employees to carry workers' compensation coverage. Coverage is provided through private insurers or an approved self-insurance program.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

Iowa requires most employers with one or more employees to carry workers' compensation coverage. Coverage is provided through private insurers or an approved self-insurance program.

Coverage trigger: One or more employees
If you go without coverage: Employers without required coverage can face penalties, injunctions, and loss of common-law defenses in a suit by an injured worker.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

Sole proprietors, partners, and certain LLC members who are not covered by default
Some agricultural employers below statutory cash-payroll thresholds
Domestic and casual workers under specified limits

Statutes and sources

Iowa Workers' Compensation Act

Iowa Code sect. 85.1 et seq.

Regulator: Iowa Division of Workers' Compensation . Last verified 2026-07-29 from the official source .

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