Best Small Business Insurance in Hawaii
The State of Hawaii currently requires businesses with one or more part- or full-time employees to carry workers' compensation insurance. Additionally, any vehicles a business owns must be covered by commercial auto insurance.
Regardless of the state’s requirements for insurance, it’s important that you secure business insurance that fits your business’s needs.
In this review, we’ll explore the best small business insurance in Hawaii and share what makes them the right choice.
Recommended: Next Insurance offers dedicated small business insurance to Hawaii small businesses.
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Next Insurance
4.75/5 |
BEST FOR SMALL BUSINESS OWNERS
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Tivly
4.5/5 |
BEST OVERALL INSURANCE MARKETPLACE
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The Hartford
4/5 |
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Hiscox
4.25/5 |
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CNA
3.75/5 |
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We narrowed our search down to our top 5 insurance carriers in Hawaii and then closely analyzed coverage offered, policy details, pricing, and other aspects to determine which type of business each provider would be most suited to.
We also identified competitive selling points like excellent customer service and niche industry offerings that make each business insurance company unique.
Our Best Hawaii Business Insurance Providers for 2023:
- Next Insurance: Best online business insurance with fast and simple sign-up.
- Tivly: Best small business insurance marketplace.
- The Hartford: Offers specialized coverage and custom packages.
- Hiscox: Good for micro businesses.
- CNA: Great for tech companies.
1. Next Insurance: Best Insurance for Small Business
Next Insurance has streamlined the process of getting business insurance coverage completely online and in just a few minutes. Named one of the “Top 50 Disruptors of 2022” by CNBC, Next Insurance uses AI and machine learning to provide the best small business liability insurance options catered to unique business needs.
We consider Next to be the best business insurance company for business owners looking to get fast, affordable, quality coverage without walking into an agency or sifting through aggressive sales pitches. Next Insurance not only offers the most common types of small business insurance but also offers specific insurance products by industry in each state, instant digital certificates of insurance (COI) downloads, and more to make the process easier than ever. Using their user-friendly mobile app, you can easily pay premiums, access policy documents, and even file liability claims on the go with rapid response times.
Due to their focus on small businesses exclusively, we found their rates to be slightly lower on average than larger insurance providers.
Next Insurance Featured Coverages
- General Liability Insurance
- Business Owner’s Policies (BOPs)
- Commercial Auto Insurance
- Commercial Property Insurance
- Professional Liability Coverage (Errors and Omissions Insurance)
- Hired & Non-Owned Auto Insurance
- Liquor Liability Insurance
- Tools & Equipment Insurance
- Workers’ Compensation Insurance
PROS
- Same-day insurance coverage
- iOS/Android app for easy access to your COI, to file claims, and to change policy type
- Get a quote and purchase a policy in less than 10 minutes
- Easy-to-use scheduler so your insurance can start on a precise date
- Competitive premiums designed for small businesses
- Customizable policies
- Convenient online chat support
CONS
- No brick-and-mortar locations/branches for in-person transactions
- Some specialized types of insurance coverage, like key person insurance, are not available
Find the Right Coverage for Your Business
2. Tivly: Best Business Insurance Marketplace
If you’re looking for a marketplace with the best quotes for business insurance, Tivly takes the gold. Tivly has gathered a wide range of small business insurance companies in one place to help you narrow down the search for a policy that meets your business's unique needs. Small business owners that may be considered high risk can find what they are looking for with Tivly.
It's important to note that Tivly is an insurance marketplace instead of an individual provider. The goal of this company is to make your search more simple by showing you the top business insurance policies for your situation and streamlining the signup process. By submitting one online form, you'll receive multiple quotes for commercial insurance products from several competitors, most of whom are on this list. You'll also get a quick rundown of each policy so that you know exactly what you're signing up for.
Tivly Featured Coverages
- General Liability Insurance
- Lost Income Insurance (Business Interruption Insurance)
- Business Hazard Insurance
- Commercial Property Insurance
- Business Owner’s Policy
- Commercial Auto Insurance
- Workers’ Compensation Insurance
- Commercial Umbrella Insurance
- Professional Liability Insurance
PROS
- Great customer service
- Live and rapid phone support from 8:00 a.m.–8:00 p.m. Monday to Saturday
- Easy-to-navigate website
- Offers a lot of information about their different insurance options
- Works with numerous partners to provide coverage for various types of businesses
- Great pricing options
CONS
- Policies are issued by other insurance providers, not Tivly.
Your Business Needs Insurance
Find out which policies your business needs and how much it will cost by getting a free quote.
3. The Hartford: Good for Specialized Insurance
The Hartford is a great insurance solution for businesses that need specialized insurance coverage. Though the insurance may not cover every type, as services like Tivly do, The Hartford offers customized insurance packages with only the coverage you need, which can save you hundreds long-term. The Hartford has served millions of small businesses for over 200 years while maintaining a great reputation for delivering some of the best specialized commercial insurance coverages and rates.
The Hartford Featured Coverages
- Business Owner’s Policy
- Commercial Auto Insurance
- General Liability Insurance
- Commercial Property Insurance
- Lost Business Income Insurance
- Business Interruption Insurance
- Professional Liability Insurance
- Workers’ Compensation Insurance
- Cyber Insurance
- Commercial Umbrella Insurance
- Employment Practices Liability Insurance
PROS
- Long history with an A+ financial strength rating through A.M. Best
- Many small business insurance types
- Named "World’s Most Ethical Company" by Ethisphere Institute
- BOP insurance combines general liability and business property insurance together
- Easy online quotes
CONS
- Not a good option if you prefer an industry-specific insurer
- Poor J.D. Power's "Small Commercial Insurance Study" reviews
- Complaints through the National Association of Insurance Commissioners.
Read our full The Hartford Small Business Insurance review.
4. Hiscox: Great for Micro-Businesses
Hiscox is the best small business insurer for micro-businesses since they have helped thousands of small and micro-businesses get insured. Hiscox has a dedicated team of small business professionals who focus only on helping small businesses get the right types of coverage at the best prices.
Hiscox Featured Coverages
- General Liability Coverage
- Professional Liability Coverage
- Business Owner’s Policy
- Short-Term Insurance Policies
- Cyber Insurance
- Workers' Compensation Insurance
- Coverage for 180+ professional services
Read our full Hiscox Small Business Insurance review.
5. CNA: Good for Tech Companies
CNA offers the best insurance for online businesses, offering cyber risk insurance solutions. If your company deals in personal or financial information or may be at risk of data breaches or online attacks, CNA offers comprehensive cyber liability policies at the best prices. We like CNA because they offer three cyber risk insurance options, as well as other niche insurance products not found with other providers.
CNA Featured Coverages
- Cyber Risk Policies
- Commercial Auto Insurance
- General Liability Policies
- Equipment Breakdown Insurance
- Inland Marine Policies
- Professional Liability and Management Insurance
- Ocean Marine Insurance
- Business Property Coverage
- Surety Insurance
- Umbrella and Excess Casualty Insurance
- Workers’ Compensation Coverage
PROS
- Specializes in business insurance
- Covers small-, mid-, and large-sized businesses
- Covers over 180 niche businesses
- Eighth largest business insurance provider in the US
- High ratings from all major insurance rating agencies
- 24-hour claims assistance
CONS
- The online quote generator doesn’t always work
- A small number of customer reviews
Read our full CNA Small Business Insurance review.
Small Business Insurance Review Methodology
Choosing the best business insurance comes down to five things:
- The type of business you have
- The type of coverage you need
- Which provider offers the best value
- Easy-to-navigate simple claims process
- Great customer service
First, we narrowed it down to the five best small business insurance providers, most of whom offer online quotes so that you can get coverage and a certificate of insurance for your business today.
Then, we analyzed coverage offered, policy details, pricing, and other aspects to determine which type of business each provider would be most suited for small business owners.
Finally, we've identified competitive selling points like excellent customer service and niche industry offerings that make each business insurance company unique.
Hawaii Business Insurance Requirements and Resources
Hawaii Insurance Requirements
In Hawaii, businesses must have workers’ compensation insurance as well as commercial auto insurance for every business vehicle they own.
Commercial Auto Insurance
All vehicles owned by a business must be covered by commercial auto insurance. Commercial auto insurance is also required if a business owner uses their personal vehicle for business purposes.
The Hawaii Department of Commerce and Consumer Affairs provides the following information about Hawaii commercial auto insurance requirements:
Hawaii is considered a “no-fault state”, which means your motor vehicle insurance company will pay the bills for your injuries and your passengers’ injuries up to the personal injury protection benefits (“PIP”) limit. And you cannot sue or be sued unless there are serious injuries. Because “no-fault” applies to injuries, not to vehicles or property, the driver-at-fault in an accident is responsible for damages to vehicle and property.
Your minimum motor vehicle insurance policy must have protection for you and your passengers of $10,000 per person personal injury protection benefits. This is for paying medical and rehabilitative costs.
Your mandatory coverages also include a $20,000 per person/$40,000 per accident bodily injury liability and a $10,000 per occurrence property damage liability. These cover damages for the injured party when you are at-fault in an accident.
Optional coverages and options you may purchase include: collision and comprehensive, uninsured (“UM”) and underinsured (“UIM”) coverages, wage loss, alternative care (including healing methods such as naturopathy, acupuncture and faith healing), death benefits (coverage range from $25,000 to $100,000), funeral benefits, (the coverage is $2,000), PIP deductible and PIP managed care.
Workers’ Compensation Insurance
Businesses with one or more part-time or full-time employees must have workers’ compensation insurance in Hawaii.
For the purpose of workers’ compensation insurance, Hawaii state statute provides the following definition of “employee”:
Title 21. Labor and Industrial Relations
- Workers' Compensation Law
386-1 Definitions
"Employee" means any individual in the employment of another person.
Where an employee is loaned or hired out to another person for the purpose of furthering the other person's trade, business, occupation, or profession, the employee shall, beginning with the time when the control of the employee is transferred to the other person and continuing until the control is returned to the original employer, be deemed to be the employee of the other person regardless of whether the employee is paid directly by the other person or by the original employer. The employee shall be deemed to remain in the sole employment of the original employer if the other person fails to secure compensation to the employee as provided in section 386-121.
Whenever an independent contractor undertakes to perform work for another person pursuant to contract, express or implied, oral or written, the independent contractor shall be deemed the employer of all employees performing work in the execution of the contract, including employees of the independent contractor's subcontractors and their subcontractors. However, the liabilities of the direct employer of an employee who suffers a work injury shall be primary and that of the others secondary in their order. An employer secondarily liable who satisfies a liability under this chapter shall be entitled to indemnity against loss from the employer primarily liable.
Data Breach Insurance
Hawaii’s data breach notification law requires any business that owns, licenses, maintains or possesses records of personal data to notify any individual whose data has been illegitimately accessed.
The law increases the likelihood that businesses will face claims of negligence, once individuals learn that their personal information has been compromised. Businesses in Hawaii should consider carrying data breach insurance to guard against such developments.
487N-2: Notice of security breach
(a) Any business that owns or licenses personal information of residents of Hawaii, any business that conducts business in Hawaii that owns or licenses personal information in any form (whether computerized, paper, or otherwise) ... shall provide notice to the affected person that there has been a security breach following discovery or notification of the breach.
(b) Any business located in Hawaii or any business that conducts business in Hawaii that maintains or possesses records or data containing personal information of residents of Hawaii that the business does not own or license… shall notify the owner or licensee of the information of any security breach immediately following discovery of the breach.
Hawaii Insurance Resources
Hawaii Department of Commerce and Consumer Affairs Motor Vehicle Insurance Information
Hawaii Motor Vehicle Insurance Law
Hawaii Disability Compensation Division About Workers’ Compensation (WC)
Hawaii Department of Commerce and Consumer Affairs Small Business FAQs
Types of Hawaii Business Insurance
General Liability Insurance
The vast majority of Hawaii companies purchase general liability insurance from an insurance company even though it is not legally required. This type of business liability insurance covers third-party bodily injury, third-party property damage, advertising liability, libel, slander, copyright issue, and other common claims faced by companies across various industries.
General liability insurance is one of the most important types of business insurance your company can purchase.
Business Owner’s Policy
A business owner’s policy (BOP) is an affordable way to bundle business insurance coverages. This type of policy includes commercial general liability insurance with commercial business property insurance. Many small business owners with a physical business space opt for this coverage.
Commercial Auto Insurance
You need to carry commercial auto insurance if your company uses vehicles to transport people or goods. This type of insurance is very similar to personal auto insurance and covers liability, medical costs, collisions, and uninsured/underinsured motorists. A commercial auto policy also covers vehicles rented or owned by your company and employees who use their own vehicles for company business.
Workers’ Compensation Insurance
Hawaii requires businesses with one or more employees to carry workers’ compensation insurance. Taking out workers' compensation insurance puts a limit on the amount and type of compensation that an injured employee may receive. The limits are set by law.
Employee Health/Life/Disability Insurance
Companies that provide health, life, and/or disability insurance as a fringe benefit will need appropriate Hawaii insurance. Under the Affordable Care Act, firms with more than 50 full-time employees must offer health insurance or pay an expensive penalty.
Professional Liability Insurance
Professional liability insurance covers financial risks to attorneys, accountants, and other people who provide professional services or expertise. Professional liability coverage varies depending on the industry but usually includes negligence, legal defense, slander or libel, and copyright and trademark disputes.
Professional liability insurance includes errors and omissions (E&O) insurance.
Data Breach Insurance
If your company hosts customers’ personal information on its servers and those servers are hacked, lawsuits and damages can result. Data breach insurance protects you in these cases.
Cyber Liability Insurance
Similar to but more comprehensive than data breach insurance, cyber liability insurance may pay for legal expenses related to a data breach or set up a call center for individuals affected by a breach. It also may pay for active protection against cyberattacks.
Commercial Crime Insurance
Crimes like extortion, forgery, burglary, computer fraud, and embezzlement are covered by commercial crime insurance. Situations in which this type of insurance is particularly useful include dishonest or libelous acts by employees.
Fiduciary Liability Insurance
Fiduciaries, who are legally required to act in plan participants’ best interests rather than the company’s when choosing advisors and investments, should consider this type of insurance coverage. It covers them if they are sued for allegedly providing negligent investment advice or administering plans or benefits incorrectly.
Third parties like out-of-company consultants and benefit plan administrators are usually not protected.
Directors and Officers Insurance
Any company with directors and officers should consider directors and officers (D&O) insurance coverage, a type of liability insurance that reimburses directors and officers for claims made against them regarding harm allegedly caused by their management decisions.
Executive Risk Coverage
Executive risk insurance is business liability insurance that provides coverage for fraud, D&O, employment practices, initial public offerings, pension funds, extortion, and professional negligence.
FAQ
Do I need business insurance in Hawaii?
Yes, you need business insurance in Hawaii. At a minimum, most businesses typically have general liability insurance to protect against a variety of business risks. Hawaii also requires businesses with one or more employees to have workers’ compensation insurance. What’s more, if your business has any vehicles, or you use your personal vehicle for business purposes, you need commercial auto insurance.
How much does business insurance cost in Hawaii?
The cost of business insurance in Hawaii can vary depending on a number of factors, including the type of business and the type of coverage the business needs.
The average national cost for some types of insurance is:
- General Liability: $65/month
- Business Owner’s Policy: $99/month
- Professional Liability (E&O): $97/month
- Workers’ Compensation: $111/month
There is also commercial auto insurance — the price will vary depending on the vehicles that need coverage.
The best way to know the cost of business insurance in Hawaii is to get a quote.
Why do I need small business insurance?
Some professions or business contracts require that you have business insurance. If this doesn’t apply to you, insurance is still a critical component of your business portfolio. Your policy is there to protect your company and its assets from unexpected lawsuits and claims.
What kind of business insurance do I need?
The type of business insurance you need depends upon the products or services you offer and how your business is structured. Every business should have a general liability policy. If you have business tools, equipment, or vehicles, you’ll want to consider covering those assets as well.
Do I need insurance for my LLC in Hawaii?
In short, yes. While incorporating as an LLC in Hawaii protects your personal assets, your business assets are still at risk in the event of a claim or lawsuit.