Get the right commercial insurance for your Iowa business
Which insurance policies are recommended for Iowa businesses?
Small businesses in Iowa most often buy these types of insurance.
General liability insurance
This policy is important for all Iowa businesses. It covers common risks, including customer injuries. Most commercial leases require this business liability insurance.
- Customer bodily injuries
- Damaged customer property
- Libel and other advertising injuries
Workers’ compensation insurance
Iowa requires workers' compensation for businesses that have one or more employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal fees from employee injuries
Commercial auto insurance
This policy is required for business-owned vehicles in Iowa. It covers injuries and property damage in an accident, along with vehicle theft, vandalism, and weather damage.
- Accidents involving business vehicles
- Theft of a business vehicle
- Damage to a company vehicle
Business owner’s policy
This insurance package bundles commercial property insurance and general liability coverage. It's often the most cost-effective type of commercial insurance for an Iowa business.
- Customer injuries
- Damaged customer property
- Damaged business property
Professional liability insurance
Also called errors and omissions insurance (E&O), this liability policy protects businesses that provide professional services and expert advice.
- Errors that cause a client to lose money
- Professional negligence lawsuits
- Late or incomplete work
Errors and omissions insurance
E&O, sometimes called professional liability insurance, is common with professional services in Iowa. It can cover the cost of lawsuits related to your work performance.
- Missed deadlines
- Accusations of negligence
- Errors and oversights
Cyber insurance
This policy helps Iowa businesses survive data breaches and cyberattacks by paying for client notification costs, legal fees, and other related expenses.
- Customer notification expenses
- Fraud monitoring services
- Data recovery
Commercial umbrella insurance
Umbrella insurance boosts coverage on your general liability insurance, commercial auto insurance, and employer's liability insurance when the underlying policy reaches its limit.
- Customer lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
Commercial property insurance
This policy covers the value of a business's physical structure and its contents, such as inventory, equipment, and furniture. Bundle it with general liability coverage in a BOP for savings.
- Fire
- Theft and vandalism
- Weather damage
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Which business insurance policies are required in Iowa?
State laws can affect which business insurance coverage you need. These policies are required everywhere in Iowa, from Des Moines to Davenport.
Workers' compensation insurance
The state of Iowa requires businesses with one or more employees, full-time or part-time, to carry workers' compensation insurance. Independent contractors are not considered employees.
Workers' comp covers medical costs for work-related injuries and illnesses. It also provides disability benefits for injured Iowa workers.
Commercial auto insurance
All business-owned vehicles in Iowa must be covered by commercial auto insurance. This policy covers the cost of accidents involving work vehicles.
Iowa's minimum requirements for auto liability insurance 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 additional coverage to comply with regulations.
Though it's not required, personal vehicles driven for work purposes should be covered by hired and non-owned auto insurance (HNOA), as personal auto policies usually exclude business use. It can be added to general liability insurance or a business owner's policy (BOP).
How much does small business insurance cost in IA?
Commercial insurance can be affordable for small business owners. Based on policy data from Insureon customers in Iowa, the average costs are:
General liability: $42 per month
Workers' comp: $65 per month
Professional liability/E&O: $72 per month
Factors that affect business insurance costs include:
- Your industry and risks
- Business operations
- Number of employees
- Location, such as Des Moines or Davenport
- Policy limits and deductibles
Top professions we insure
FAQs about Iowa business insurance
How do I get a certificate of insurance for my business?
Insureon's licensed agents can help you find policies that fulfill Iowa's business insurance requirements and match your type of business. Once you've purchased coverage with us, you can download a certificate of insurance (COI) by logging into your account.
Can my company be held liable for a data security breach?
Yes – that's why cyber insurance is so crucial. Small businesses are a common target of cyberattacks since they often have fewer security measures in place.
Iowa's data breach laws require businesses to report security breaches to affected residents, and the costs can escalate quickly. Cyber liability insurance lessens the financial impact by paying for notification costs, legal fees, and fines.
Does my industry affect state insurance requirements?
Yes, your state may have special requirements for business insurance and bonds for your industry. You may also need a license depending on the work you do.
Contractors often need to carry general liability insurance or surety bonds to perform certain types of work. Having the right insurance and bonds helps you comply with state licensing requirements.
Real estate agents and brokers are required by state law to carry errors and omissions insurance (E&O), while other professionals who offer advice or services sometimes need this policy to get licensed.
Note that cities and counties may have their own laws, in addition to state laws.
How can I save money on Iowa business insurance?
As with any purchase, shopping around is one of the best ways to find an affordable option. With Insureon, you can compare quotes from top-rated insurance carriers by filling out a free online application.
Other ways to save include bundling policies for a discount, and choosing less expensive coverage options, such as lower limits or a higher deductible. Learn more about how to find cheap insurance that still meets your business insurance needs.