Rejection of Coverage

A rejection of coverage means a company officer chooses not to receive workers’ comp or employers’ liability coverage. This applies to any bodily injuries or death that may occur while the officer works for the corporation. By rejecting coverage, the officer opts out of these specific types of insurance protections provided under the law. This coverage is under Iowa Code chapters 85, 85A, and 85B.

Iowa law allows officers of a corporation to make a rejection of workers’ compensation or employers’ liability insurance coverage. The officers of a corporation who may reject coverage are:

President
Vice president
Secretary
Treasurer

No more than four of these officers may reject coverage. Other employees of a corporation cannot reject coverage under the law. This does not apply to family farm corporations.

Employees of other types of entities cannot reject coverage under the law.

A rejection of coverage is unenforceable if it is a condition of the officer's employment.

Process for filing a rejection of coverage

Use the online form to make a rejection of coverage with WCD. A rejection of coverage filed with WCD is a public record. WCD maintains a list of rejections of coverage filed with the agency as required by law.

If the corporation has a workers' comp or employers' liability insurance policy:

The officer must sign and attach a written nonelection of coverage to the policy.
Individuals are not required to file it with WCD.

If the corporation 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

To be a witness for the nonelection of coverage form, an individual must:

Have no formal affiliation with the employer
Have no informal affiliation employer
Be a disinterested party

The form requires two witnesses to sign the form.

Difference Between Rejection of Coverage and Nonelection of Coverage

A rejection of coverage applies to officers of corporations (excluding family farm corporations). A nonelection of coverage applies to proprietors, limited liability company members, limited liability partners, or partners of a business entity.

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.