Business Insurance

Why Get Business Insurance in Hawaii
Hawaii is one of the most unique states in the country. It is the only state which has a royal palace and the only one which grows coffee. No matter how big or small your Hawaii business is, as a business owner you can’t afford to ignore the valuable protection which business insurance provides. No business is immune from lawsuits. Business insurance offers the necessary coverage which can be customized to whatever type of business is being insured. In this way, you don’t have to worry about possible lawsuits or other situations occurring which might disrupt the productivity of your business or cause severe financial distress.

Hawaii Worker’s Compensation and Temporary Disability Insurance
There are two types of commercial insurance available for employers:

  • temporary disability
  • worker’s compensation policy – mandated by the state of Hawaii for all employers with at least one part-time or full-time employee

The above coverage is beneficial to both employees and employers. For example, if an employee is injured either on or off the job, any related medical treatments are fully paid for by the worker’s compensation benefits. It also provides loss of income payments and disability benefits, if warranted. The worker’s compensation policy also protects the employer from any possible lawsuit resulting from an accident. Employees who are exempt from the laws governing worker’s compensation include religious leaders, volunteers, domestic workers who have quarterly earnings of less than $225, employed students, people working in sales, and real estate brokers.

Hawaii differs from other states when it comes to disability benefits. Those individuals who are unable to work do not receive disability benefits from the state of Hawaii. The only obligation of Hawaii employers as mandated by law is to pay temporary disability insurance to employees who cannot work due to illness or injuries sustained outside of the workplace.

Insurance companies have two options:

  • Cover all premium costs
  • Sharing the cost with employees – no more than 0.5% of weekly wages can be deducted. The maximum amount allowed by state law is $4.51.

Coverage for Hawaii Business Insurance
Each business establishment needs a general liability policy to protect the owner’s assets against all potential lawsuits. Liability insurance coverage provides protection against bodily injury or property damage claims by customers or other third parties. General liability insurance will cover all payments for medical bills that relate to any injury or the cost of any damages when a company is found legally liable. Examples would be if an employee is injured in a fall or if an employee damages a customer’s property. Liability coverage also will pay for any legal and court costs associated with a lawsuit filed against the business owner. It also covers the payment of any settlement imposed by the court on the business.

The following types of liability insurance are offered by most insurance providers:

  1. Employment Practices Liability – shields companies against employees’ claims for wrongful termination, discrimination or harassment.
  2. Professional Liability – also referred to as errors & omissions. This insurance will pay damages to third parties due to the negligence or wrongdoing on the part of a business.
  3. Umbrella Liability – provide additional coverage amounts above the general liability policies to guard the companies’ assets from lawsuits.

To have an idea on how much protection you need, insurers will generally evaluate the type of business which is being insured, determine the total value of your assets, and consider where the business is located. You can easily find out much of this information by contacting several insurance companies and comparing coverage options and rates. This can be done quickly and securely online. Be sure to get a comprehensive business insurance policy which fully protects both your business and your personal assets.