Iowa Code

Iowa Code § 87.1 (2026)

Insurance of liability required

✓ current as of July 2026
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1. Every employer subject to the provisions of chapter 10A, subchapter III, this chapter, and chapters 85, 85A, and 85B, unless relieved as hereinafter provided from the requirements imposed under chapter 10A, subchapter III, this chapter, and chapters 85, 85A, and 85B, shall insure the employer’s liability under chapter 10A, subchapter III, this chapter, and chapters 85, 85A, and 85B, in some corporation, association, or organization approved by the commissioner of insurance. 2. A motor carrier who contracts with an owner-operator who is acting as an independent contractor pursuant to section 85.61, subsection 12, paragraph “c”, shall not be required to insure the motor carrier’s liability for the owner-operator. A motor carrier may procure compensation liability insurance coverage for these owner-operators, and may charge the owner-operator for the costs of the premiums. A motor carrier shall require the owner-operator to provide and maintain a certificate of workers’ compensation insurance covering the owner-operator’s employees. An owner-operator shall remain responsible for providing compensation liability insurance for the owner-operator’s employees. 3. Every such employer shall exhibit, on demand of the workers’ compensation commissioner, evidence of the employer’s compliance with this section; and if such employer refuses, or neglects to comply with this section, the employer shall be liable in case of injury to any worker in the employer’s employ under the common law as modified by statute. [S13, §2477-m41; C24, 27, 31, 35, 39, §1467; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §87.1] 91 Acts, ch 209, §2; 94 Acts, ch 1066, §1; 98 Acts, ch 1061, §11; 2007 Acts, ch 22, §22; 2008 Acts, ch 1031, §27, 100; 2023 Acts, ch 19, §1753 Referred to in §87.4

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Notes of Decisions
Cited in 21 cases (2 in the last 5 years), 1947–2026 · leading case: Stroup v. Reno, 530 N.W.2d 441 (Iowa 1995).
Stroup v. Reno, 530 N.W.2d 441 (Iowa 1995). · cites it 8× “See Iowa Code § 87.1 (requiring most employers to carry workers' compensation liability insurance).”
In Re the Rath Packing Co., 35 B.R. 615 (Bankr. D. Iowa 1983). · cites it 6× “Statement of Facts Stated briefly, Iowa Code § 87.1 (1983) requires applicable employers to carry workers’ compensation insurance.”
Bashford v. Slater, 108 N.W.2d 474 (Iowa 1961). · cites it 16× “Plaintiff then amended his petition by alleging that the Association did not insure its liability under Section 87.1, Code of Iowa, I.C.A., and did not have more than five persons engaged in hazardous employment within purview of Sections 87.”
Travelers Indem. Co. v. Comm'r of Ins. of the State, 767 N.W.2d 646 (Iowa 2009). · cites it 6× “See Iowa Code § 87.1 (2005). When an employer is “in good faith entitled to” obtain workers’ compensation insurance, but is “unable to procure such insurance through ordinary methods” (i.”
Iowa Contractors Workers' Comp. Grp. v. Iowa Ins. Guar. Ass'n, 437 N.W.2d 909 (Iowa 1989). · cites it 3× “Iowa Code section 87.1 guarantees that employers will have sufficient funds to pay these benefits.”
Bremer v. Wallace, 728 N.W.2d 803 (Iowa 2007). · cites it 4× “1 See generally Iowa Code §§ 87.1 , .4, .11 (2001). Because Wallace was uninsured, Bremer had the option of suing Wallace in “an action at law for damages” or collecting workers’ compensation benefits.”
McKeever Custom Cabinets v. Smith, 379 N.W.2d 368 (Iowa 1985). · cites it 2× “) The significant provision in the insurance statute is section 87.1 which states so far as relevant: “Every employer subject to the provisions of this and [chapter] 85 .”
Samuel De Dios v. Indem. Ins. Co. of North Am. & Broadspire Servs., Inc., 927 N.W.2d 611 (Iowa 2019). · cites it 2× “Iowa Code sections 87.1, 87.4, and 87.11 delineate the entities that act as insurers under our workers compensation system.”
Cedar Rapids Meats, Inc. v. Hager (In Re Cedar Rapids Meats, Inc.), 121 B.R. 562 (Bankr. D. Iowa 1990). · cites it 2× “Iowa Code § 87.1 requires every employer under the purview of the worker’s compensation provisions to furnish insurance for worker’s compensation liability.”
Fabricius v. Montgomery Elevator Co., 121 N.W.2d 361 (Iowa 1963). · cites it 2× “In the process of securing payment the legislature has provided every employer shall be insured, section 87.1, unless relieved as provided in section 87.”
Suckow v. Neowa Fs, Inc., 445 N.W.2d 776 (Iowa 1989). · cites it 2× “See Iowa Code § 87.1 (1985). Co-employees have none of these burdens; their only risk is potential liability for acts of gross negligence.”
Casey v. Hansen, 26 N.W.2d 50 (Iowa 1947). · cites it 4× “Defendant employer, Harry Hansen, had not insured his liability as provided by section 87.1 (references are to Code of 1946), nor had he been relieved from so doing pursuant to section 87.”
— Iowa Code § 87.1(2) — 1 case
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