Workers’ compensation insurance laws and requirements for employers vary from state to state, but private employers can generally choose whether to carry workers' compensation insurance coverage. A workers' compensation insurance policy provides lost wages and medical benefits to employees injured on the job—and death benefits for the spouse and dependents (children) of a worker who dies in a work-related accident.
Under workers’ compensation laws in many states employers who subscribe to workers’ compensation insurance receive a significant legal protection—they cannot be sued by an injured employee (or the estate of a deceased employee) unless the employer was grossly negligent (more negligent than simple, ordinary negligence).
In other words, if an employer has workers’ compensation insurance, that is usually the exclusive remedy for an injured employee (known as the exclusive remedy provision in the statute), and the insurance coverage bars an injured employee from suing the employer (known as the workers’ compensation bar).
An employer who does not purchase or subscribe to workers’ compensation insurance is known as a nonsubscriber. Workers’ compensation laws are usually located in a state’s statutes.
In Iowa, workers' compensation insurance is mandatory for most employers. The Iowa Workers' Compensation Act requires that any employer with one or more employees, whether part-time or full-time, must have workers' compensation insurance to cover their employees. This insurance provides benefits for medical care, rehabilitation, and lost wages to employees who are injured on the job or suffer from an occupational disease. It also provides death benefits to dependents of workers who have died as a result of their employment. Employers in Iowa are protected by the exclusive remedy provision, meaning that in most cases, employees cannot sue their employers for work-related injuries if the employer has workers' compensation coverage. This serves as the primary means of recovery for injured workers. However, if an employer unlawfully fails to obtain workers' compensation insurance, they can be subject to penalties and may lose the protections of the exclusive remedy provision, potentially exposing them to civil lawsuits by injured employees. It's important for employers to comply with these regulations to ensure both legal protection and the well-being of their employees.