There are currently about 117,000 businesses headquartered in Hawaii. While many are geared toward this state’s huge tourist market, these businesses encompass many different industries. Whether you own a franchise operation such as Aloha Petroleum or a small company like Volcano Winery, a business insurance policy may be necessary to protect the investment you have made in establishing your commercial enterprise. If you are thinking about purchasing insurance to cover your Hawaii-based company, the first step is to start reviewing commercial insurance policies and quotes.
Revenues Generated by Hawaii-Based Businesses
Here's a snapshot for the year 2007 in Hawaii:
- Manufacturers’ shipments: $8.799 billion
- Merchant wholesaler sales: $8.895 billion
- Accommodation and food service sales: $8.042 billion
- Retail sales: $17.612 billion
- Retail sales per capita: $13,793
Regardless of the industry in which your Hawaii-based company operates, business insurance can provide suitable coverage. These insurance policies are designed to be fully customizable so that you can build a policy that is appropriate to meet the various needs of your particular business.
Hawaii Business Statistics
- At the end of 2010, there were 117,509 businesses based in Hawaii. Of these:
- 24,468 were businesses with 1 through 500 employees
- 915 were businesses with more than 500 employees
- 92,126 were businesses with no employees (self-employed individuals)
- Companies with 1 to 500 employees provide jobs to 54.1% of this state’s private-sector labor force
- In 2011, 5,117 new businesses were established in HI and 6,384 businesses closed
- In that same year, 165 businesses based in Hawaii filed for bankruptcy
What Does Business Insurance Cover?
The hazards faced by each particular company tend to vary by industry. This is why business insurance policies are designed with a number of different coverage options. As a business owner, you can customize your policy to meet your company’s unique coverage needs.
Coverage options you can expect to find:
- Liability coverage: This type of insurance is designed to safeguard your business from extreme financial losses that can arise from lawsuits. Even if your company is not truly at fault, defending it against a liability claim can be quite expensive. Liability insurance will cover the funds you are responsible for as well as any associated court costs and legal fees, up to your coverage limit. You can choose from many different types of liability coverage, as dictated by the needs of your business. Some of the more commonly purchased liability coverage types include:
- General liability coverage: This covers injuries and property damage that may be suffered by third parties as the result of an accident in your place of business.
- Product liability coverage: This covers your liability for injuries or illnesses caused by faulty product design for items sold or produced your company.
- Professional liability coverage: Also known as errors & omissions insurance, this covers professionals who give advice or provide services against charges of negligence. Medical malpractice insurance is included under this coverage umbrella.
- Commercial vehicle liability: This provides coverage for your company-owned vehicles.
- Non-owned or for-hire vehicle coverage: This provides liability coverage for your employees’ personal vehicles during the times that they are using them for company business.
- Liquor liability: This covers businesses that serve or sell alcoholic beverages in the event that they are held liable for the actions of an intoxicated patron.
- Property coverage: You have probably invested a lot in your business, including property such as inventory, merchandise, furnishings and other business assets. This insurance is designed to compensate you if this property is lost or damaged due to a covered event. You may need to purchase specialized riders to cover such things as signage, glass display cases and custom-built machinery. Your coverage needs are likely to change over time, so it is a good idea to revisit your property coverage limits every three to five years to ensure that they are sufficient to protect you against a total loss.
- Loss-of-income insurance: This is designed to provide your business with a continuation of income in the event that you must temporarily close or cease operations due to complications brought on by a covered event. This coverage is intended to provide your company with enough income to enable you to make payments to creditors as well as cover employee salaries until you can once again resume operations. This coverage is typically limited to one year.
Flood and Earthquake Coverage Must Be Purchased Separately
Floods and earthquakes are not uncommon in Hawaii. Unfortunately, as with homeowners insurance, these hazards are not covered by business insurance. You may therefore want to consider supplementing your policy with a government-backed commercial flood insurance policy through the National Flood Insurance Program and with an earthquake insurance policy.
The NFIP enables business owners to purchase flood insurance coverage in amounts of up to $500,000 in structural damage coverage and $500,000 in contents damage coverage. Earthquake insurance policies, on the other hand, typically have higher coverage limits and can be obtained through a variety of providers.
Easily Compare Business Insurance Quotes in Hawaii
Building a business insurance policy that is appropriate to meet your company’s needs requires a bit of foresight. You will need to consider all of the potential risks your Hawaii-based company is likely to face. That way, you can properly shield it from undue financial losses. An independent agent in the Trusted Choice® network can help you obtain a suitable policy by answering your insurance-related questions, helping you determine your company’s specific coverage needs and finding you different policies and quotes to compare.
There are a number of Trusted Choice agents located throughout this state, so it should be easy to find one conveniently located near your home or business. Contact an agent to get more information and you can start comparing commercial insurance quotes in Hawaii in no time.