Nonelection of Workers' Comp or Liability Coverage
A nonelection of coverage election means that an individual or entity chooses not to have workers' compensation or employers' liability coverage. This decision does not give up any rights or options for legal action in case of personal injuries at work.
Only the following may make a nonelection of coverage:
Proprietorships
Limited Liability Companies (LLCs)
Limited Liability Partnerships (LLPs)
Partnerships
They should make this decision on their own. Employers cannot require that employee's sign the nonelection of coverage form. If employees must sign the form as a condition of employment, it is not enforceable.
Process for Filing a Nonelection of Coverage
Use the online form to make a nonelection of coverage with WCD.
If the employer has a workers' compensation or employers' liability insurance policy:
The individual must sign and attach a written nonelection of coverage to the policy.
Individuals are not required to file it with WCD.
If the employer doesn't have a workers' compensation or employers' liability insurance policy:
Complete, sign, and file the online nonelection of coverage form with WCD.
Have the signing witnessed by two individuals who are not affiliated with the employer
Legal Advice
WCD cannot provide legal advice or referrals to private attorneys. It is a neutral body that decides workers' comp disputes. Contact an attorney to learn about an employer's rights and responsibilities under Iowa law.
Individuals who have filed a nonelection of coverage with WCD can end it at any time.
After receiving notice of termination, the person who signed the notice will be treated as if they had not chosen to opt out of coverage. However, this notice will not affect any injuries or illnesses that occur within one week after the notice is submitted.
Hypothetical Scenarios
Various hypothetical scenarios illustrate the application of nonelection of coverage rules for different individuals and entity types.
Riley is the proprietor of a business. The business does not have a workers' compensation or employers' liability insurance policy. Riley wants to make a nonelection of coverage.
To make a nonelection of coverage, Riley must:
Go to the WCD website and complete the online nonelection of coverage form.
Have two witnesses watch Riley sign the online form (see the requirements for a witness above).
Have an authorized representative of the employer complete the online form. (As a proprietor, Riley may be an authorized representative of the employer.)
Have two witnesses watch the authorized representative sign the online form (see the requirements for a witness above).
After the filing of the online nonelection of coverage form with WCD:
Riley and the authorized representative will receive a verification email. The email will include the information provided on the form.
The online WCD nonelection of coverage list will show Riley's nonelection of coverage.
Peyton is a member of an LLC. The company has a workers' compensation or employers' liability insurance policy. Peyton wants to make a nonelection of coverage. Peyton has questions about how to make a nonelection of coverage.
Because the company has a workers' compensation or employers' liability insurance policy, Peyton:
Does not file a nonelection of coverage with WCD.
Should not contact WCD with questions. WCD cannot give legal advice or make referrals to attorneys. Visit the legal resources page for information about legal advice and referrals.
Should contact an attorney or the insurance carrier with questions.
Jordan is a LLP. The business does not have a workers' compensation or employers' liability policy. Jordan would like to make a nonelection of coverage.
Jordan has completed the online nonelection of coverage form. Jordan needs two witnesses to the signing of the form.
One of the crews of subcontractors that contracts with the company for work is at the office. Jordan cannot have any of the members of the crew of subcontractors be a witness. They have a financial relationship with the company. They do not qualify as disinterested individuals.
Sawyer is the president of a corporation. Sawyer's business has no other employees. Sawyer's business does not have a workers' compensation or employers' liability insurance policy.
Sawyer's insurance carrier advises Sawyer to take out a workers' compensation or employers' liability insurance policy. Sawyer does not want to pay for such a policy. Sawyer's friend is a partner in a business, who tells Sawyer that the partners in the business made nonelection's of coverage. The friend suggests that Sawyer make a nonelection of coverage.
Sawyer does not qualify to make a nonelection of coverage. Sawyer is not a proprietor, LLC member, LLP, or partner. As president of a corporation, Sawyer may make a rejection of coverage.
More information about rejections of coverage is available on this page.
Blake is a member of an LLC. The majority owner of the company tells Blake to make a nonelection of coverage or be fired. Blake makes a nonelection of coverage because the majority owner required it.
The nonelection of coverage that Blake made is not enforceable since it was a condition of employment.
