Popular Questions about Business Insurance in Hawaii

Hazards such as damaging weather, property crimes, and liability lawsuits can often result in very expensive losses for businesses.

Business insurance is designed to protect your company from the financial losses it may face due to due to its various exposures. This coverage can prove quite beneficial as is evidenced by the fact that in 2019 alone, businesses in Hawaii collected more than $1.2 billion in insurance claims.

A local independent agent can help you build a customized business insurance plan that is suitable to meet the specific needs of your particular company.

There are many different ways that companies in the US have benefited from having business insurance. The following are the five most commonly filed claims as well as the average amount collected by businesses for these claims:

  • Theft and burglary:  $8,000
  • Water damage and freezing pipes:  $17,000
  • Wind and hail damage:  $26,000
  • Fire damage:  $35,000
  • Customer slip and fall:  $20,000

Talk to a local independent insurance agent for help determining the specific risks faced by your business in Hawaii, and get advice about the best insurance policies to cover against them.

Business insurance is designed to cover the expenses associated with a variety of potential hazards so that your business doesn’t have to.

If your inventory is damaged, if a severe weather event forces your business to shut down for several week, if a customer files a liability lawsuit against your company, or if one of your employees is severely injured on the job, a solid business insurance policy package can help to make sure that these exposures will not significantly affect your business’s bottom line.

Here’s are a few things you can expect a well-built business insurance policy package to do:

  • Pay for damage to your business property
    • Example: An electrical fire gets out of control in your company’s storeroom. The inventory that isn’t destroyed by the flames is severely damaged by smoke and water from the fire-fighting efforts, and it must all be thrown out.
  • Pay for losses sustained due to necessary closures
    • ExampleA hurricane causes damage to your business as well as the roads leading to it and local power lines. Because if this, you are unable to reopen for several weeks.
  • Pay for someone else’s property damage or medical bills
    • Example: An elderly customer in your store slips on a freshly mopped floor and fractures a hip.
  • Pay for accidents involving company vehicles
    • Example: While driving a construction vehicle to a job site, one of your employees misjudges a turn and sideswipes a parked car.
  • Pay for employee injuries and work-related illnesses
    • ExampleA maintenance worker at your hotel suffers a serious back injury in a fall while fixing a broken light fixture.

A business insurance policy is not required by law. However, some types of commercial insurance that are often included in business insurance policy packages may be necessary in some situations. For example:

  • Most financial institutions will require you to show proof of property and/or liability coverage before they will agree to finance a business loan or line of credit.
  • In Hawaii, nearly all employers are required by law to carry workers’ compensation insurance.
  • Contracting firms will often be required to show their prospective clients proof of contractors insurance before they can be hired to do a job.
  • Businesses that have company-owned vehicles will need to cover these cars, trucks, vans, and buses with commercial auto insurance.

To learn more about coverage that your business may need to have, you can talk with a local independent insurance agent.

Business insurance rates are calculated according to several factors such as:

  • The type of business you are insuring
  • The value of your company’s assets
  • The number of workers you employ
  • Your various liability exposures
  • Your company’s claims history
  • The amount and types of coverage you want to purchase

Coverage needs can vary significantly from one business to the next, so it is a good idea to work with an experienced insurance agent who can help you build a comprehensive policy package for your company. These agents can ensure that you are getting the right coverage for each of your business’s potential exposures while helping you avoid paying for coverage that is not a good fit.

Also, because independent agents can work with multiple insurance companies, they can search for the best price for each type of coverage you need. Sometimes this means building a business insurance portfolio that includes policies from several different insurance companies. Don’t worry. You will still only have one point of contact with your independent insurance agent.

Yes! There are currently 34 independent agencies in Hawaii who are ready to help.

These experienced agents can work with several different insurance providers to find you build a comprehensive and competitively priced business insurance portfolio. Contact an agent near to learn more and to get help ensuring that your business is fully covered against all potential risks.

How does business insurance work?

Find the Best Insurance in Your City

National Business Insurance Stats

Number of businesses in the US: 27,626,360

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 Honolulu47,7705,594
Ewa Gentry25,752648
Hilo46,2844,236
Kahului32,3122,123
Kailua36,6626,342
Kaneohe33,7392,941
Kapolei21,474938
Kihei21,8792,829
Makakilo20,920861
Mililani Mauka19,9551,165
Mililani Town27,9261,449
Pearl City46,1292,899
Urban Honolulu345,06438,329
Wailuku15,3132,235
Waipahu40,4272,439
  • 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 your business assets are sufficiently covered against risks like theft, vandalism, and embezzlement. In addition to covering against 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 judgements 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 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. A local independent agent will be aware of this risk and can help you add commercial flood insurance to your business insurance policy package so that you are fully covered.
  • 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 own 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. You can make sure your business is properly insured by working with an independent insurance agent in Hilo.
  • 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 a number of 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 damages caused by Hilo’s damaging weather events like hail, heavy winds, and severe storms. Fortunately, when you have the right business insurance in place, your company will be able to repair damages 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. You will need to be certain that your coverage meets all state required minimums. An independent insurance agent can help.
  • 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. Find the policy and rate that works best for your Waipahu business by teaming up with a local independent agent.
  • 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.  A local independent agent can help you find a suitable policy at a competitive price.
  • 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.