Hawaii Workers Comp Insurance

With limited exceptions, every employer in Hawaii with one or more employee(s) is required by law to have a valid workers' compensation policy at all times. This "no fault" insurance not only provides injured workers with medical care and partial wage replacement, but also protects the policyholders from potentially damaging lawsuits. Although most companies in HI purchase a traditional commercial insurance policy, there are alternative methods of coverage which include licensing as a self insurer, gaining membership in a self insurance group, or obtaining coverage in the Assigned Risk Pool.

HI Workers Comp Insurance Specific Regulations

• • Having any employees working in Hawaii requires a business to carry insurance coverage
  • If you work for someone else you will not be covered by their insurance policy unless you are an employee. This requires independent contractors to have their own workman’s compensation insurance
  • If you are a real estate salesperson or a broker paid on commission you may have the option to opt out of coverage
  • Hawaii has both a private market and an assigned risk pool to help businesses struggling to secure coverage
  • In Hawaii sole proprietors and partners are excluded from coverage, but have the option to opt in
  • If corporate officers own at least 50% of a corporation in Hawaii they are excluded from coverage, but have the option to opt in
  • Members of LLCs are included in coverage, but (pending legislation) may be excluded in specific circumstances