Business Insurance in Hawaii FAQ - Quick Answers

Every Hawaii small business insurance policy will be individualized, which means custom premiums based on your unique risk factors. While you can't know your exact costs for commercial coverage without quotes, you can understand what impacts them:

  • Type of industry
  • Number of employees
  • Gross annual sales
  • Location of business
  • Number of company vehicles
  • Safety practices in place
  • Past claims reported
  • Number of years in operation

You'll need coverage for your daily operations when owning a small business. In Hawaii, workers' compensation and commercial auto coverage are required for most businesses that have employees and company-owned autos. Other coverages are not mandatory, but may be worth looking into.

Every small business in Hawaii will have different risk exposures which require a variety of coverages. Here are some policies that could apply to your business:

In Hawaii, small business coverage usually starts with a general liability policy. This primary policy protects from a lawsuit your operation may endure:

According to the Affordable Care Act, you're only legally required to offer health insurance plans when you have 50 or more employees. Some small businesses choose to supply health coverage as a part of their benefits package for added value. You can obtain quotes from a local independent insurance agent in minutes.

There are numerous options when it comes to obtaining small business protection. In Hawaii, Hanover, Travelers, and Progressive insurance companies are used by many operations. This is because of their excellent coverage offerings and competitive pricing across the board.

Do You Know What Your Business Insurance Covers in Hawaii?

Find the Best Business Insurance in Your City

National Business Insurance Stats

Number of businesses in the US: 30,819,176

Burglary rate per 1,000 residents in the US: 3.76

Auto theft rate per 1,000 vehicles in the US: 2.29

City Population Number of Established Firms 
East Honolulu50,9225,594
Hilo44,1864,236
Kahului28,2192,123
Kapolei21,411938
Kihei21,4232,829
Makakilo19,877861
Mililani Mauka21,0751,165
Pearl City47,6982,899
Waipahu43,4852,439
  • Honolulu, HI
  • Business Insurance Common Coverage Options
  • Property: Last year, there were more than 3,000 reported thefts in Honolulu. The high property crime rate in this city makes it particularly important that you ensure that your business assets are sufficiently covered against risks like theft, vandalism, and embezzlement. In addition to covering crime, your policy can also cover loss and damage due to other hazards like severe weather and accidental fires.
  • Commercial auto: If your business owns a vehicle or a fleet of vehicles, you may benefit from having the added liability coverage that comes with a commercial auto insurance policy. This is because liability lawsuits often result in higher judgments when they are brought against companies. Your rates will be based on several factors, including the number and types of vehicles you are covering, information about the employees who will be operating them, and the risk of collisions where they will be driven.
  • Workers’ compensation
  • Workers’ compensation insurance can cover the cost of medical bills and lost wages if your workers are injured on the job or suffer an occupational illness. Rates are based primarily on your company’s overall payroll and the likelihood that your employees will be injured based on the types of jobs they do.


  • Pearl City, HI 
  • Business Insurance Common Coverage Options
  • Property: You will want to be sure that all your company’s assets are covered at levels that will enable you to rebuild, repair, or replace this property as needed. Floods pose a significant risk in Pearl City, especially for businesses near East Loch, Middle Loch, and Waiawa Stream. However, flood damage is typically excluded from commercial property coverage.
  • Commercial auto: Whether you are insuring a delivery van or a fleet of semi-trucks, a good commercial vehicle insurance policy can protect your company against losses related to liability risks and property damage. Rates will be based on factors like the types of vehicles your company owns, how often they are used, and information about the employees who will be driving them.
  • Workers’ compensation
  • With very few exceptions, workers’ compensation insurance is required by state law for all employers in Pearl City. This insurance can cover medical treatments, lost wages, and other costs associated with injuries that occur on the job. Every type of business has its risks when it comes to employee safety. Some jobs are simply safer than others. That is why workers’ compensation rates often vary significantly from one business industry to the next.


  • Hilo, HI
  • Business Insurance Common Coverage Options
  • Property: Having a sufficient amount of business property insurance can shield your company from losses related to hazards like fires, property crimes, and severe weather events. You will also want to be certain that you have coverage against risks like earthquakes, volcanic eruptions, and lava flows. Sometimes, this may mean purchasing supplemental coverage. 
  • Commercial auto: Commercial vehicle insurance can protect your business from facing large liability costs if one of your workers causes an accident while driving a company car. Rates are based on several factors like your employees' driving records and the types of vehicles you are covering. For example, it costs far more to insure a 12-passenger van than a cargo van since your liability risks are greater when you have passengers.
  • Workers’ compensation
  • Workers’ compensation insurance is designed to cover the cost of medical treatments, disability pay, and other expenses related to injuries or occupational illnesses your employees may suffer because of doing their jobs. It is required for nearly all Hawaii businesses that have employees. Workers’ compensation rates are assigned according to your company’s overall payroll and the types of jobs your employees do.


  • Kailua, HI
  • Business Insurance Common Coverage Options
  • Property: Hazards like theft, vandalism, and accidental fires can lead to large costly business property losses. So can damage caused by damaging weather events like hail, high winds, and severe storms. Fortunately, when you have the right business insurance in place, your company will be able to repair the damage and continue to function without experiencing a large financial loss.
  • Commercial auto: If your Kailua business owns a vehicle or fleet of vehicles, you will need to carry commercial auto insurance. Rates for coverage can vary according to the number and types of vehicles you are covering, as well as the risk of collisions where your employees will be driving. 
  • Workers’ compensation
  • Workers’ compensation insurance covers medical expenses and paid time off for employees who suffer occupational illnesses or are injured on the job. With few exceptions, if your Kailua business has employees, you are required by law to have this insurance. Rates for coverage can vary significantly from one business to the next, depending on the types of jobs your employees do and how much they are paid.


  • Waipahu, HI 
  • Business Insurance Common Coverage Options
  • Property: As a business owner, you have likely invested a lot into your company’s assets such as computers, furniture, tools, machinery, and supplies. Business property insurance can help cover the cost of repairing or replacing this property if it is lost or damaged by a covered event like a fire or severe storm. 
  • Commercial auto: Many businesses in Waipahu have company-owned cars, trucks, vans, or buses. If yours is among them, you will need to cover these vehicles with a commercial auto insurance policy. Doing so can prevent your business from facing a financially devastating lawsuit if one of your drivers is responsible for a serious accident while driving a company vehicle. 
  • Workers’ compensation
  • Workers’ compensation insurance covers expenses like medical bills and lost wages for workers who come down with occupational illnesses or are injured while doing their jobs. It is required for nearly all Hawaii businesses that have employees. Rates for this coverage are assigned according to your company’s overall payroll amount and the types of jobs your employees do.