Honolulu is an important port for the Hawaiian Islands with several military bases located in the area. Each year, millions of visitors descend on the area to enjoy multiple tourist attractions. Businesses here have special needs when it comes to insurance.
Designing a policy that meets the needs of Honolulu businesses serving tourists and residents of the island is no easy task. As a Honolulu business owner, you need access to one-on-one attention from a business insurance expert who understands the unique challenges you face every day.
Talk with a Honolulu independent insurance agent today to start building the policy you need at the best possible price.
Why Do Businesses in Honolulu, Hawaii, Need Liability Insurance?
Business liability insurance is crucial to any business that could be sued. The coverage provides funds for legal fees, court costs, and even pays financial damages resulting from a lawsuit for a covered event.
Liability lawsuits are too expensive for most businesses to handle on their own. Business liability insurance is the backbone of a good business insurance policy. Your agent may recommend specific types of liability insurance, depending on your business type.
- Premises liability insurance: This covers third-party injuries, illnesses, and property damage that occur due to an accident on your business property.
- Product liability insurance: This covers third-party injuries, illnesses and property damage that are caused by defects in products your business produces, sells, or promotes.
- Employment practices liability insurance: This covers lawsuits related to accusations of illegal employment practices such as discrimination, harassment, breach of contract, and wrongful termination.
- Cyber liability insurance: This covers against financial losses and liabilities if hackers access your computer systems and steal sensitive customer data such as financial information, credit card numbers, Social Security numbers, or personal data.
- Pollution liability insurance: This covers cleanup costs and damages if your business is responsible for an accident that leads to the pollution of the ground, water, or air.
- Commercial vehicle liability insurance: This is required by law if your business owns and operates vehicles. It can cover your company’s increased liability risks if one of your drivers causes an accident that results in third-party injuries or damage.
Given the unique nature of many Honolulu businesses, your agent may have more customized advice about which policies could best protect your company. They can talk with you about how to put together a policy that helps preserve your financial investment while allowing your business to grow.
What Insurance Products Cover Your Honolulu Business Property?
In Honolulu, your business is most likely to experience damage or property loss due to fire or weather. Commercial property insurance covers nearly every type of damage except flooding. You may need different specialized insurance policies, depending on your business activities.
- Inland marine insurance: This covers portable business property while it is in transit or is stored away from your place of business, such as at a worksite.
- Boiler & machinery insurance: This covers the repair or replacement of a broken-down furnace or other machinery, and can also cover any business losses associated with machine malfunctions.
- Bailee's insurance: This covers valuable property owned by others whenever it is in your business’s care, custody, or control, such as when you are performing repair or maintenance services on it.
It's important to understand that flood damage is not automatically covered with your business property insurance, even if the damage is the result of another covered event. Flood damage is notoriously expensive, and could destroy your business. Talk with your agent about adding commercial flood insurance to your policy.
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Why Is Business Interruption Insurance a Good Idea in Honolulu, HI?
After a catastrophe, it may take time to make repairs and reopen your business. During the time you are closed, it can be difficult to keep up with regular bills and keep key employees on your payroll.
Business interruption insurance helps provide much-needed funds during a difficult time. This coverage can prevent you from suffering the negative financial effects of a disaster for years to come.
In Honolulu, there have been a number of federally-declared disasters in recent history. The number of natural disasters in Honolulu County (14) is near the US average (13).
Causes of natural disasters:
- Floods: 6
- Storms: 6
- Fires: 3
- Mudslides: 2
- Earthquakes: 1
- Flash Floods: 1
- Heavy Rain: 1
- Hurricanes: 1
- Landslides: 1
- Tsunami Waves: 1
- Typhoons: 1
With business interruption insurance, you'll have access to the money you need to pay your regular bills, even if you can't be open for business. Your local agent can help you understand how this coverage could help you recover after a catastrophe.
Do Businesses in Honolulu Need Workers' Compensation Insurance?
Honolulu businesses must follow Hawaii's laws and carry workers' compensation insurance for their employees. If your business is part of the construction industry, you'll have to provide coverage for both resident and non-resident employees. Every employer with one or more employees, whether they are full-time, part-time, permanent, or temporary, must carry coverage. LLC members also require coverage.
There's no legal requirement to cover real estate salespeople paid on commission, or domestic workers earning less than $225 per year. Employers can choose to cover any employee, however.
If your employee is hurt on the job, workers' compensation insurance helps pay their medical bills and may even provide assistance with a continuation of income until they can return to work.
What about Insurance Products for Employee Benefits Packages?
When you offer a great benefits package to your employees that includes health insurance and life insurance, you gain access to top talent in the area. Benefits are an important part of a compensation package.
Smaller employers and new businesses may find that subsidizing employees' benefits is an expensive endeavor. There are proven cost-saving benefits to making this important investment, however.
Don't rely on generic internet quotes to determine whether you can afford to offer benefits. Your local agent can help you evaluate various companies and find a benefits package that's valuable to your employees and that works within your company's budget.
Why Work with an Independent Insurance Agent in Honolulu, HI?
Every business has its own individual needs when it comes to commercial insurance. You deserve an agent that understands the unique situation faced by Honolulu businesses.
When you work with an independent insurance agent in Honolulu, you'll get the one-on-one support you need while designing your insurance package. If you ever need to make a claim, you'll have that same level of service, as well
Reach out to a Honolulu, HI independent insurance agent today to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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