Hawaii Workers’ Compensation

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What can be covered by Hawaii Workers’ Comp insurance?

Medical expenses

Medical expenses

Like exams, treatment and rehabilitation.
Lost wages

Lost wages

For employee recovery after a work injury.


To teach injured employees new skills if they can no longer do their jobs.
Permanent injury

Permanent injury

Benefits for employees who can no longer work due to injury.

Table of Contents

Is Hawaii Workers’ Compensation insurance required?

The Hawaii Disability Compensation Division states that workers’ compensation insurance is required for businesses with one or more employees. This includes full-time, part-time, permanent and temporary workers.

With insurance for workers’ comp, Hawaii employers are protected from the financial liability that can result from employee accidents or illness on the job. In addition, business owners are not subject to civil actions from employees for work-related injuries and illnesses.

In addition to carrying workers’ comp coverage, employers in Hawaii must:

  • Keep a printed statement explaining benefit rights, claims for benefits and other key information about workers’ compensation in a place that is readily accessible to employees.
  • File a report of injury to the Disability Compensation Division within seven working days of the incident.
  • Provide each injured employee with a copy of the Highlights of the Hawaii Workers’ Compensation Law brochure within three working days of their injury.

To maintain the required insurance for workers’ comp, Hawaii businesses can’t use a policy from another state. Employers are required to hold workers’ compensation coverage from a carrier authorized to transact insurance in the state of Hawaii.

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How does Hawaii Workers’ Comp work?

In the event of a work-related injury or illness, Hawaii workers’ compensation insurance coverage can help pay for:

  • Emergency treatment
  • Medical bills
  • Lost income
  • Death benefits
  • Vocational rehabilitation
  • Permanent injury

Several types of workers’ compensation income benefits are available in Hawaii, including:

  • Temporary total disability: The employee is unable to work temporarily due to their injury.
  • Permanent partial disability: The employee loses certain body parts or functions as a result of their accident.
  • Permanent total disability: The employee is unable to return to work because of the injury.
  • Disfigurement: The employee sustains significant scarring, deformity or discoloration as a result of their accident.

In incidents when an employee dies due to a work-related injury or illness, death benefits may be paid to a surviving spouse or dependent children.

Hawaii employers who do not have the required workers’ compensation insurance may be subject to fines. The penalty for failure to obtain coverage is $100 for each employee for each day without coverage, with a minimum fine of $500.

If an employee gets hurt on the job when you don’t have coverage, you could be subject to serious financial risk. The injured workers may file civil action against you and submit a claim to the state’s division of workers’ compensation.

Learn more about workers’ compensation coverage.

How much is Workers’ Compensation in Hawaii?

Workers’ compensation costs vary across industries. Factors that influence price include:

  • The number of employees and the type of work they do.
  • Your total payroll.
  • Your insurance claims history.
  • The locations where you do business.

Get a free instant quote in about 10 minutes from NEXT to see your workers’ comp insurance costs.

Who is exempt from Hawaii Workers’ Comp insurance?

There are certain types of employment which are excluded from the workers’ compensation coverage requirement in Hawaii, including:

  • Voluntary or unpaid workers for a religious, charitable, education or nonprofit organization.
  • Students working for a school, university or college club in return for room, board or tuition.
  • Ministers, priests and rabbis.
  • Domestic workers earning less than $225 per quarter.
  • Domestic workers of public welfare recipients.
  • Real estate salespersons and brokers paid solely on a commission basis.

Although employers are not required to have workers’ comp insurance for these excluded employees, they may still decide to obtain coverage to protect their business from potential financial risks.

Workers’ Compensation owner’s coverage

While insurance for employees is required, some business owners are exempt from the insurance requirement for insuring themselves according to Hawaii Workers’ Compensation Law. This includes:

  • Sole proprietors
  • Partners in a partnership
  • 50% stockholders
  • Some 25% stockholders
  • Some members of limited liability companies (LLC)

If you fall into one of these categories, you may still want to consider getting workers’ comp insurance since it could provide coverage if you’re hurt or become ill on the job.

For example, if you own a small retail store and fall off a ladder while restocking shelves and injure your back, your recovery takes several weeks. Workers’ comp could help cover your medical expenses and lost wages while your store is closed.

How NEXT helps Hawaii small business owners

NEXT offers an easy way to get a free workers’ compensation insurance quote, purchase coverage and instantly share a certificate of insurance in about 10 minutes.

NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.

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Other important small business insurance policies in Hawaii

Workers’ compensation insurance provides many important protections, but you’ll need additional coverage to protect from all the risks your small business can face.
Many Hawaii small businesses also consider:
General Liability
General Liability insurance

General liability insurance protects your business from common mistakes or accidents, such as customer injury or damages to someone’s property.

Commercial Auto
Commercial Auto insurance

If you or your employees drive vehicles for work, you probably need commercial auto insurance. This provides coverage for accident-related expenses in a business-owned vehicle or a personal vehicle being used for work purposes.

Commercial Property
Commercial Property insurance

Commercial property insurance can provide financial help if your business structures, goods, gear or inventory are damaged or destroyed by a covered event.

Errors & Omissions
Professional Liability insurance

Professional liability insurance, also called errors & omissions insurance, provides financial protection against claims of professional mistakes and negligence.

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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.