Get the right commercial insurance for your Hawaii business
Which insurance policies are recommended for Hawaii businesses?
Small businesses in Hawaii most often buy these insurance products.
General liability insurance
A commercial general liability policy provides financial protection against common third-party lawsuits. It can fulfill the business liability insurance requirements in commercial leases.
- Customer bodily injuries
- Damaged customer property
- Libel and other advertising injuries
Workers’ compensation insurance
Workers’ comp insurance is required for Hawaii businesses that have employees, full-time or part-time. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal fees from employee injuries
Commercial auto insurance
This policy is required for business-owned vehicles in Hawaii. It covers injuries and property damage in an accident, along with vehicle theft, vandalism, and weather damage.
- Accidents involving business vehicles
- Theft of a business vehicle
- Damage to a company vehicle
Business owner’s policy
A BOP bundles commercial property insurance and general liability coverage in one plan. It's often the most cost-effective type of commercial insurance for a small Hawaii business.
- Customer injuries
- Damaged customer property
- Damaged business property
Professional liability insurance
This policy, also called errors and omissions insurance (E&O), is important for Hawaii businesses that provide professional services or expert advice. It covers lawsuits related to work quality.
- Work mistakes and oversights
- Professional negligence lawsuits
- Late or incomplete work
Errors and omissions insurance
E&O, sometimes called professional liability insurance, is common with professional services in Hawaii. It can cover the cost of lawsuits related to your work performance.
- Missed deadlines
- Accusations of negligence
- Errors and oversights
Cyber insurance
This policy covers financial losses caused by data breaches and cyberattacks. It's important for Hawaii businesses that handle sensitive data, such as credit cards or Social Security numbers.
- Data breach lawsuits
- Cost of notifying affected customers
- Fraud monitoring services
Commercial umbrella insurance
Umbrella insurance boosts coverage on your general liability insurance, commercial auto insurance, and employer's liability insurance when the underlying policy reaches its limit.
- Customer lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
Commercial property insurance
This policy covers the value of a business's physical structure and its contents, such as inventory, equipment, and furniture. Bundle it with general liability coverage in a BOP for savings.
- Fire
- Theft and vandalism
- Weather damage
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Which business insurance policies are required in Hawaii?
State laws can affect which business insurance coverage you need. From Honolulu to Hilo, these policies are required on every island in Hawaii.
Workers' compensation insurance
With some exceptions, Hawaii state law requires businesses with one or more employees, full-time or part-time, to carry workers’ compensation insurance.
This policy covers the cost of medical treatment for work-related injuries and illnesses. It also provides disability benefits while the employee is recovering and unable to work.
Commercial auto insurance
All business-owned vehicles in Hawaii must be covered by commercial auto insurance. This policy covers the cost of work vehicle accidents.
Hawaii's minimum requirements for auto liability insurance are:
- $20,000 per person bodily injury liability
- $40,000 per accident bodily injury liability
- $10,000 per occurrence property damage liability
- $10,000 per person personal injury protection
Businesses may also purchase a combined single limit (CSL) auto policy, which combines bodily injury and property damage into one shared maximum instead of split limits.
Trucking companies may need additional liability insurance coverage to comply with regulations.
Though it's not required, personal vehicles driven for work purposes should be covered by hired and non-owned auto insurance (HNOA), as personal auto policies usually exclude business use. It can be added to general liability insurance or a business owner's policy (BOP).
How much does small business insurance cost?
Commercial insurance can be affordable for small business owners. Based on policy data from Insureon customers, the average costs are:
General liability: $45 per month
Workers' comp: $54 per month
Professional liability/E&O: $88 per month
Factors that affect business insurance costs include:
- Your industry and risks
- Business operations
- Number of employees
- Location, such as Honolulu or Hilo
- Policy limits and deductibles
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FAQs about Hawaii business insurance
How do I get a certificate of insurance for my business?
Insureon's licensed agents can help you find policies that fulfill Hawaii's requirements and protect against financial loss. Once you've purchased insurance with us, you can download a certificate of insurance (COI) by logging into your account.
Can my company be held liable for a data security breach?
Yes – that's why cyber insurance is so crucial. Small businesses are a common target of cyberattacks since they often have fewer security measures in place.
Hawaii's data breach laws require businesses to report security breaches to affected residents, and the costs can escalate quickly. Cyber liability insurance lessens the financial impact by paying for notification costs, legal fees, and fines.
Does my industry affect state insurance requirements?
Yes, your state may have special requirements for business insurance and bonds for your industry. You may also need a license depending on your type of business.
Contractors and some handymen often need to carry general liability insurance or surety bonds to perform specialized work. Having the right insurance and bonds helps you comply with state licensing requirements.
Real estate agents and brokers and other professionals who offer advice or services sometimes need errors and omissions insurance (E&O) to get licensed in their state.
Note that cities and counties may have their own laws, in addition to state laws.
How can I save money on Hawaii small business insurance?
As with any purchase, shopping around is one of the best ways to find an affordable option. With Insureon, you can compare quotes from top-rated insurance carriers by filling out a free online application.
Other ways to save include bundling policies for a discount, and choosing less expensive policy options, such as lower limits or a higher deductible. Learn more about how to find cheap business insurance.