If your Iowa partnership has employees, you need workers' compensation for them from the first hire. The partners themselves are different: Iowa does not treat a partner as an employee, so partners are off the policy by default and are covered only if they elect in.
Who this is for: Iowa general partners and members of an LLP who want to know whether the business needs workers' comp and whether the partners are covered.
The short version
- Employees of the partnership must be covered from the first one, under Iowa Code section 87.1.
- Partners and limited-liability partners are not counted as employees in Iowa, so they are off the policy by default.
- A partner who wants coverage elects in by buying a policy that specifically names that partner.
- A partner who stays off must file a written nonelection form with the state, witnessed by two people not involved.
- A partners-only firm with no employees has no one it is required to cover, until it hires.
Partners versus employees
Iowa groups partners with sole proprietors and LLC members as people who are not workers or employees unless they elect coverage. So whether the partnership must insure turns on the staff you hire, not on the partners. A cook, a clerk, or a laborer you bring on must be covered. Each partner separately decides whether to be on the policy.
| Person in the partnership | On the policy by default? | How to change it |
|---|---|---|
| General partner active in the business | No, off by default | Elect in by buying coverage that names the partner |
| Partner who wants to stay off | No | Must file a written nonelection form with the state, witnessed by two disinterested people |
| A regular employee (non-partner) | Yes, must be covered | Cannot be waived out; coverage is required |
Why partners often elect in
Staying off the policy saves a little premium, but a partner who is hurt on the job then has no workers' comp for that injury, and a personal health plan may treat a work injury differently. Working partners who are exposed to the same risks as the crew commonly elect in. If you would rather stay off, you must file the nonelection, and remember that no one can be forced to reject or decline coverage as a condition of employment.
A Dubuque example
Illustrative, not a quote. Two partners run a Dubuque catering business as a general partnership and hire three kitchen employees. The three employees must be covered from the first one. The partners are off the policy by default; because they both work the events alongside staff, they elect in so the policy names them too. When a venue asks for proof of coverage before an event, the partnership already has a certificate. See our workers comp for restaurants and food service page.
Real questions Iowa owners ask
Does an Iowa partnership need workers' comp?
Yes, once it has employees. Any non-partner employee must be covered from the first hire. A partnership with only partners and no employees has no one it is required to cover.
Are partners covered automatically in Iowa?
No. Iowa does not count a partner as an employee, so partners are off the policy by default. A partner is covered only if they elect in by buying a policy that names them.
How does a partner get workers' comp coverage?
By electing in. The partner buys workers' comp that specifically includes that person, which gives medical and wage coverage for a work injury that a personal plan may not.
What if a partner does not want coverage?
The partner can stay off but must file a written nonelection form with the state, witnessed by two people not involved in the business. The state keeps a public list of these filings.
Can we leave our one employee off to save money?
No. A regular non-partner employee must be covered and cannot be waived out. Only the partners have the choice to be on or off the policy.
Does this apply to a limited-liability partnership too?
Yes. A limited-liability partner is treated like a general partner for this purpose in Iowa, off the policy by default and covered only if they elect in.
Why Iowa owners choose Morrow
- We shop the right market for you. In Iowa you buy workers' comp on the open market from any private carrier approved by the Iowa Insurance Commissioner, because Iowa has no state fund; if no carrier will take you, the state's plan of last resort is the guaranteed fallback, so we can shop your rate freely and still keep a backstop for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Iowa guides
Every Iowa business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Iowa (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Workers compensation insurance, explained
- Hiring your first employee: what changes
- Iowa restaurant workers comp
This guide is general information, not legal advice. Iowa rules and penalty amounts can change, so verify current requirements with the Iowa Division of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.