Insurance in Iowa

Iowa does not impose a blanket liability-insurance minimum on every trade license, but workers' compensation is effectively mandatory and the real market (general contractors, commercial and public customers) will require more coverage than the statutory floor. 1. Workers' compensation. Iowa Code Chapter 85 requires most employers with employees to carry workers' compensation insurance or qualify as a self-insurer through the Iowa Division of Workers' Compensation. Sole proprietors, partners, LLC members, and certain corporate officers are not required to cover themselves but may elect coverage. Working without required workers' compensation exposes the employer to civil penalties and loss of common-law defenses. Source: Iowa Division of Workers' Compensation (https://www.iowaworkcomp.gov/). 2. Commercial general liability. Iowa's DIAL trade-contractor rules require proof of liability insurance for Plumbing Contractor, HVAC Contractor, and Class A Electrical Contractor licensees. The typical commercial job requirement is $1M per occurrence and $2M aggregate regardless of the state-license minimum. 3. Commercial auto. Personal auto policies exclude business use. Hired and non-owned auto coverage protects against claims arising from employee-owned vehicles used on company business. 4. Tools and equipment (inland marine). Homeowners and auto policies exclude business tools beyond small dollar limits. Inland marine is the contractor-specific tool coverage. 5. Umbrella. A $1M or $2M umbrella is inexpensive relative to what it protects and is commonly required on commercial GC paperwork. 6. EPA Section 608. HVAC technicians who handle regulated refrigerants must hold current EPA Section 608 certification under 40 CFR Part 82 Subpart F. Insurers and employers increasingly ask for proof. Shop the market. Trade association programs (ABC, AGC, PHCC, MCA, NECA) often have group insurance programs that beat street-rate premiums for the trade. Never let coverage lapse during an active job. A one-day gap on a multi-month project is enough to void a claim if something happens during the gap.