Iowa contractor insurance requirements

Workers' comp in Iowa

Almost every Iowa business must carry workers' comp from its first employee. Corporate officers can reject coverage for themselves in writing, up to four per corporation.

The agency in charge is the Iowa Division of Workers' Compensation. It can tell you whether a specific business needs coverage, and most states let you look up an employer's policy online.

Contractor licensing and insurance

We found no statewide general liability minimum tied to a general contractor license. Iowa requires contractors to register with the state. Cities and counties can set their own licensing and insurance rules, so check where the project is.

Indemnity and additional insured clauses

Iowa's anti-indemnity statute (Iowa Code § 537A.5) voids construction contract clauses that make a contractor indemnify another party for that party's own negligence, even in part. Clauses limited to the contractor's own share of fault generally hold up.

What to check on a contractor COI for a Iowa project

1. Workers' comp. Nearly every contractor with employees needs it in Iowa. A contractor with a crew and no workers' comp on its COI is a gap. For an out-of-state contractor, confirm Iowa is listed on the workers' comp policy.
2. General liability. Iowa doesn't set a statewide floor for a general contractor license, so your project requirements set the bar. Compare each limit on the COI with what the contract asks for.
3. Additional insured. The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. Dates. Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

Forsured checks every contractor COI against your project requirements, then keeps checking for the life of the project. Send us one project's requirements and a contractor COI or two for a free COI risk check.