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Hawaii Business Insurance

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Business insurance in Hawaii

Small businesses make up almost all companies in the Aloha State and employ about 276,000 Hawaii residents.1

Starting and growing a small business requires hard work and a considerable amount of time, but an accident or mistake can derail what you’ve built. Small business insurance in Hawaii helps protect your investment if:

  • Someone accuses your company of causing an injury or damaging property
  • A client says that your business’s work causes financial losses
  • An employee gets hurt at work
  • Someone has an accident in a vehicle titled to your business

Next Insurance helps more than 1,000 types of small businesses and self-employed workers quickly get the coverage they need online at the best price. We specialize in small business insurance, so we can easily help you find a custom insurance package that is right for you.

Continue reading to find out about the most important types of business insurance in Hawaii or start a free instant quote to review options for your business.

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How Next can help you with business insurance in Hawaii

We offer a quick and simple way for you to get business insurance quotes online, purchase coverage and share your certificate of insurance. The entire process typically takes just a few minutes.

Our team of licensed, U.S.-based advisors can help you if you have any questions.

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Business insurance coverage and requirements in Hawaii

If you own a small business in Hawaii, you should consider some combination of the following protection:

  • General liability insurance, to help cover costs if someone claims that your actions caused injury or property damage.
  • Professional liability insurance, a form of coverage that helps pay for allegations of professional negligence that cause financial losses. These types of allegations could include claims of poor work, missed deadlines and incomplete jobs.
  • Commercial auto insurance, which helps cover damages if a person at your business has an accident in a company-owned vehicle.
  • Workers’ compensation insurance, a type of coverage that is mandatory for Hawaii-based business with employees. It helps pay for medical expenses and a portion of lost wages if a worker gets hurt on the job.

 

General Liability insurance

General liability insurance is one of the most important forms of coverage for small businesses.

If a person who doesn’t work for your company claims that your actions resulted in injury or property destruction, you could be responsible for paying medical bills and other damages. General liability coverage helps small businesses cover such accusations, up to the policy limits.

For example, a homeowner says that a dog walker in Honolulu was negligent after an animal destroys a flower bed and requests reimbursement for damages. General liability coverage helps the dog walker pay to replace the destroyed plants, including labor costs.

In the event of a serious accident, someone could sue your company for causing injury or damaging property. General liability insurance would help cover legal costs, including attorney fees, court costs and any additional damages for which your business is found liable. Companies that plan to rent office space also often need this type of coverage before they’re allowed to sign a lease.

Business insurance in Hawaii might include tools and equipment coverage if you own a construction or cleaning company. This general liability upgrade helps repair or replace essential business gear that is damaged, lost or stolen.

 

Professional Liability insurance

Even the most conscientious small business owners could find themselves accused of professional negligence that causes a client financial losses. Professional liability insurance, which is also called errors and omissions (E&O) coverage, helps small businesses pay for these types of claims. 

If someone says that your business made a mistake, professional liability insurance covers at least part of the damages. Like general liability coverage, E&O insurance also helps pay for lawsuit costs.

A small business owner might need to file a professional liability insurance claim if something like this happened:

A hotel owner in Hilo says that an accounting firm made a property tax error that results in thousands of dollars in fines. The accountants’ professional liability insurance helps repay the client for the damages and potentially avoid further legal problems.

 

Commercial Auto insurance

Anyone who drives a vehicle in Hawaii is required to carry automobile insurance that covers a minimum of $40,000 in damages for injuring another person, $10,000 in personal injury protection and $10,000 for property damages.2

Since personal auto insurance is unlikely to cover damages from accidents in company-owned vehicles, your business might need commercial auto coverage. You should strongly consider carrying more than Hawaii’s minimum required auto insurance if your business owns multiple automobiles that are often on the road.

Commercial auto insurance would help protect a small company in the following scenario:

An employee of an air conditioning installation firm in Kailua has an accident in a company truck while returning from a job, injuring another driver. The company’s commercial auto insurance helps pay for the other person’s medical bills, as well as any vehicle damages, depending on the policy limits. 

Hired and non-owned auto coverage is an upgrade that many small company owners might want to add to their package. If you sometimes request that employees rent vehicles for work or drive their own automobiles, this form of business insurance in Hawaii helps pay for accident damages.

 

Workers’ Compensation insurance

Job-related injuries can cause employees to accrue medical bills and lose even more money if they can’t work for a period of time. For these reasons, Hawaii law requires businesses with employees to carry workers’ comp insurance.3 

This form of business insurance in Hawaii helps employees who suffer on-the-job injuries pay for medical expenses and collect a portion of wages if they need time off to recover. In Hawaii, workers’ comp coverage also reimburses injured employees up to 58% of lost weekly wages, up to a maximum of $650 per week.4 

For instance, an employee of a Maui event planning firm sprains a wrist while staging a conference at the Lahaina Civic Center and requires several doctor visits. Medical professionals recommend that the employee take two weeks off work to recover from the injury.

Workers’ comp insurance helps the injured employee cover medical bills and pays some lost wages while he or she is unable to report to the job.

How much does business insurance in Hawaii cost?

Small business insurance in Hawaii costs Next customers a median of about $38 across all industries that we serve in the state.

How much your company will pay for coverage depends on several major factors, such as:

Risks your business regularly encounters. Your company’s industry and day-to-day risks help determine insurance costs. Construction companies in Hawaii spend a median of $47 each month because the likelihood of causing injury or property damages is higher than in other industries. On the other hand, consulting firms in the state pay $25 per month for coverage.

Coverage types and policy limits. Small business owners on tight budgets might be inclined to purchase only the minimum required kinds of insurance and lowest policy limits. But be forewarned that you’ll likely pay more out of pocket if you need to file a claim and don’t have a comprehensive business insurance package in Hawaii.

The number of people your company employs. A company that employs a dozen people will pay more for workers’ comp coverage than a business with just one staff member. Having an exact number of employees at your fingertips, including part-time and temporary employees, will make sure you get the most accurate quote.

Start a quote with Next Insurance today to explore coverage options for your business in just a few minutes.

 

More resources for Hawaii small businesses and self-employed workers

Check out these links if you would like to learn more about starting a business in Hawaii:

Article sources: 

  1. U.S. Small Business Administration 
  2. Hawaii Department of Commerce and Consumer Affairs 
  3. State of Hawaii Disability Compensation Division 
  4. State of Hawaii Disability Compensation Division