Iowa Workers' Compensation

If an accident happened in your workplace, how financially prepared are you? Nobody wants to think the worst could happen, but accidents can still happen despite your preventative measures.

According to the Bureau of Labor Statistics, private businesses in Iowa reported around 34,900 work-related non-fatal injuries in 2021. Around 20,600 of this documented number were severe in nature, causing “days away, restricted, and transferred” DART cases.

Workplace accidents can be physically damaging as well as financially draining. Helping to protect your company and employees with Workers’ Compensation coverage can be vital if you’re a small business owner in Iowa.

PolicySweet® offers affordable and comprehensive Workers’ Compensation insurance tailored for small business owners in Iowa. Get your free, no-obligation insurance quote today!


How Does Workers’ Compensation Work in Iowa?

According to Chapter 87 of the Iowa Code, most employers in the state are required to insure their employees unless they are part of the exemptions stated in chapters 85.1 and 85.1 A of the same code.

Work-related injuries and illnesses can be covered by Workers’ Compensation due to the nature of the work. The amount of compensation an injured employee could receive varies according to the severity of their injuries and the terms of the policy.

Employees should notify their employer of injuries sustained on the job. The employer should then notify their insurance provider to start the claims process. The insurance provider is typically responsible for handling the claims and payments related to injuries.

Responsibilities of the Employer

Listed below are the responsibilities of employers under the Iowa Workers’ Compensation Law:

Providing Comprehensive Workers’ Compensation

As mentioned above, most Iowa employers are legally responsible for providing Workers’ Compensation for their employees. However, the law also includes some exemptions to this. These are some of the entities that are not required by the law to purchase a Workers’ Compensation policy:

  • Members of a limited liability company, corporate partners in a partnership setting, or sole proprietors;
  • Employees who are working for a family member;
  • Casual and domestic employees who are earning less than $1,500.

Making Initial and Subsequent Injury Reports

The employer should report work-related injuries sustained by their employees to the Iowa Division of Workers’ Compensation as soon as possible. Once they make an initial injury report, they may also be responsible for filing subsequent reports.

This is called the FROI (or First Report of Injury) and SROI (or Subsequent Report of Injury). This responsibility is stipulated under section 86.11 of the Iowa Code. Failure to make the first report within the timeline or update subsequent statements could result in hefty penalty fines.

Providing Comprehensive Workers’ Compensation

The employer could be responsible for providing their employees with medical care, including doctor visits, medications, hospitalization, and other treatments deemed necessary by the physician. Employers may also be responsible for filing claims to their insurance provider promptly.

Penalties for Not Providing Workers’ Compensation in Iowa

Chapter 85 and 86 of the Iowa Code cover the possible penalties for employers who fail to provide Workers’ Compensation for their employees. The penalties range from fines to the revocation of business licenses in extreme cases. Here are some of the possible charges employers could face:

  • Informal meeting with the commissioner of the Iowa Division of Workers’ Compensation;
  • Up to $1,000 assessment fine for not correctly and timely filing FROI and SROI;
  • An assessment fine for neglecting or delaying weekly benefits; and

What Is Included in Workers’ Compensation?

Workers’ Compensation helps to cover a wide range of benefits for employees who are injured or disabled due to their work. Some of the most common benefits include:

Medical Costs

This could cover expenses related to the employee’s injury, including doctor visits, medications, hospitalization, and other treatments deemed necessary by the physician.

Missed Income

Employees are entitled to recover their lost wages for the time they were away from work, up to a certain amount.

Rehabilitation Costs

The employer may also be responsible for providing necessary rehabilitation services to help the employee recover and return to work as soon as possible.

Start a Quote With PolicySweet Today

Finding a Workers’ Compensation policy can be challenging for a small business owner. With limited financial resources, employers should ensure they get the best coverage for their employees at an affordable price.

At PolicySweet, our team of insurance professionals is here to help guide you through the process. Start a quote today and let us help you find a Workers’ Compensation policy for your small business!

Please Note: State-specific information is subject to change at any time. Always consult with your state’s official information and resources for the most accurate information.