MoneyGeek’s analysis of the best workers' compensation insurance in Hawaii is based on insurers’ affordability, customer satisfaction, financial stability and online quote process. Thimble emerged as the best provider overall with high scores across these metrics.
All businesses with employees in Hawaii are required by law to carry workers' compensation insurance. This coverage provides financial protection for small business owners in case an employee sustains a work-related injury or illness by covering medical expenses, lost wages and potential lawsuits.
Best Workers’ Compensation Insurance in Hawaii
Best Workers’ Compensation Insurance in Hawaii
Thimble came out on top as the best provider for workers' compensation in Hawaii with a MoneyGeek score of 94 out of 100. Thimble’s workers' compensation insurance costs an average of $319 per month, though rates may vary based on a business's unique needs and circumstances.
How was this MoneyGeek score calculated?
- Most affordable provider with an average rate of $319 per month
- Solid financial stability rating from AM Best
- Quick online quote process
Thimble’s workers' comp insurance is the cheapest in Hawaii at an average of $319 per month. This company also has a solid financial strength rating from AM Best, meaning that it can handle its financial obligations, including payment of claims. For small business owners that want custom coverage, Thimble offers a quick and efficient online quote process. However, compared to other insurers in our study, Thimble receives a higher number of customer complaints.
- Average monthly premium of $550
- High customer satisfaction rating
- Financially stable
- Quick online quote process
biBERK has a solid customer satisfaction track record, according to the NAIC, receiving slightly more complaints than average for a company of its size. This insurer also provides prospective customers a hassle-free online quote process that takes under two minutes. Rated A++ (Superior) by AM Best, biBERK has a strong financial background and is able to meet its ongoing financial obligations to policyholders. With an average rate of $550 per month, this provider is relatively expensive, but it's a good option for small businesses looking for a balance of good service and cost.
- Average premium of $598 per month
- Highest customer satisfaction score in our comparison group
Based on its NAIC complaint index score, Next receives fewer customer complaints than average, indicating that policyholders are satisfied with the service they receive. Next's rates average $598 per month, the most expensive in the comparison group. However, this company is a good option for those who prioritize good customer service. Next does not score as well in financial stability as other companies in our analysis, but its AM Best rating of A- still indicates that it is likely to fulfill its financial obligations. The company also has the slowest online quote process in our comparison group, taking an average of over three minutes.
Cheapest Workers’ Compensation Insurance in Hawaii
Thimble offers the cheapest workers' compensation in Hawaii at an average of $319 per month. This insurer is the cheapest provider for businesses with 20 employees and $1,250,000 in annual payroll costs. Keep in mind that employee count and payroll have a significant impact on insurance costs, so rates may vary.
Thimble is Moneygeek’s top pick for small business owners looking for affordable workers' comp in Hawaii. With an average premium of $319 per month, Thimble offers the cheapest rates for businesses with 20 employees. This company also has a high financial strength rating from AM Best, meaning that it is consistently able to handle its financial obligations.
Getting an online quote from Thimble is a quick, hassle-free process that takes a couple of minutes. However, it is worth noting that this insurer receives more complaints than average for a company of its size, so customer service may not be lacking compared to other insurers in our analysis.
MoneyGeek ranked insurers based on average monthly cost to find the cheapest. However, rates for your small business may vary depending on other factors.
The Hawaii insurance companies we evaluated are shown in the table below along with their monthly and annual rates for businesses with 20 employees in the table below. Companies are ranked by monthly cost.
Best Workers’ Compensation Insurance for Micro Businesses in Hawaii
Thimble offers the best workers' comp insurance in Hawaii for businesses with five employees. It has an average monthly cost of $120. This rate is based on an annual payroll amount of $312,500.
A business with an employee count of between one and nine is considered a micro business. Employee count is one of the factors that impact workers' compensation costs, but payroll tends to be more significant in determining premiums.
With an average rate of $120 per month, Thimble offers the cheapest rates for businesses with five employees out of the insurers we evaluated in Hawaii. The company is also financially stable, so it can handle its obligations to policyholders, such as paying out claims. In addition, Thimble has a quick online quote process — it takes less than two minutes to get a quote for your business. However, the insurer has a high complaint index based on NAIC data, meaning that it could do better in the area of customer service.
Best Workers’ Compensation Insurance for Midsize Businesses in Hawaii
MoneyGeek found that Thimble is the best workers' comp provider in Hawaii for businesses with 100 employees. This insurer offers the cheapest rates at an average of $1,558 per month. This rate is also based on an annual payroll amount of $6,250,000.
Rates will vary based on your business's employee count and annual payroll costs, with the latter generally having more of an impact on premiums.
Thimble ranked as the best insurer for workers' compensation for midsize businesses in Hawaii, with an average rate of $1,558 per month. Compared to other insurers in our analysis, Thimble stands out for affordability — its rates are the cheapest in the state — and financial stability. However, with a relatively low complaint score, Thimble’s customer service track record falls short compared to other companies in our analysis.
How Much Is Workers’ Compensation Insurance in Hawaii?
The average cost of workers' compensation insurance in Hawaii for businesses with 20 employees is $489 per month. Compared to the average national cost of $168 per month, rates in Hawaii are significantly more expensive.
For this analysis, Moneygeek used a policy with the following limits:
- $1 million total policy limit
- $1 million per accident limit
- $1 million per employee limit
The total policy limit refers to the maximum amount the insurer will pay in a given policy year, while the per-accident limit is the maximum amount the company will pay for a single accident. The employee limit is the maximum amount payable per employee. Any lost wages or medical bills exceeding the set limits will not be covered by the workers' comp policy and must be paid by the business.
Workers' compensation insurance premiums vary depending on employee count and annual payroll cost. MoneyGeek compiled the average cost of workers' compensation insurance in Hawaii for five, 20 and 100 employees in the table below.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Hawaii
Factors like employee count, payroll costs and more impact how much each business pays for workers' compensation insurance.
Businesses with high payroll costs tend to pay a higher premium for workers' comp insurance compared to those with low payroll expenses. Insurers typically charge a fixed rate — called a premium index rate — that is set at the state level and based on industry for every $100 of payroll. Hawaii had an average premium index rate of $2.27 per $100 of payroll in 2022, the second-highest rate nationally.
Number of employees
Workers' compensation insurance costs tend to be higher for businesses with more employees since they face a higher risk of employee illnesses or injuries compared to businesses with few employees.
Employee class code
Employee class code is based on the nature of work performed by employees, such as construction or accounting. This class code determines the rate charged for every $100 of payroll. The more risky the nature of the work, the higher the cost of workers' comp insurance will be. For instance, rates for industries like construction, where the risk of injury is high, will typically be more costly.
Companies with a history of claims will generally pay higher rates for workers' comp insurance since they are considered higher risk.
Recent data from the U.S. Bureau of Labor Statistics (BLS) indicate that there were 11,000 nonfatal workplace illnesses and injuries recorded at private businesses in Hawaii in 2021. Nationally, there were more than 2.6 million nonfatal private-industry workplace injuries and illnesses in 2021.
Do You Need Workers’ Compensation Insurance in Hawaii?
All businesses in Hawaii with at least one employee are required by law to carry workers' compensation insurance. In Hawaii, both full-time and part-time employees are eligible for workers' compensation benefits. Certain types of workers are exempt from mandatory workers' compensation coverage, including unpaid workers for a religious or nonprofit organization, domestic workers who earn less than $225 per quarter and fifty-percent stockholders. However, employers may cover the excluded employees if they wish.
Employers can purchase workers' comp from private insurers or they can self-insure. However, under Hawaii labor laws, the employer is prohibited from requiring the employee to contribute to the premiums. Employers who choose to self-insure pay statutory benefits directly to the injured employee. To qualify for self-insurance, employers must provide proof of financial solvency.
In Hawaii, employers that fail to provide workers' compensation insurance as required by law will have to pay $100 for each employee for every day of non-coverage.
What Does Workers’ Compensation Insurance Cover in Hawaii?
Workers' compensation insurance in Hawaii covers the cost of medical expenses, lost wages and potential lawsuits arising from work-related injuries or illnesses. Benefits also include permanent disability benefits in the event that the employee becomes permanently disabled. Workers' comp will also cover the cost of any potential legal suits if the injured employee sues the business. An employer purchases this coverage to protect themselves financially in case their employees suffer work-related injuries or illness — the employer is the policyholder.
Workers’ Compensation Insurance Resources for Employees in Hawaii
The Department of Labor and Industrial Relations' Disability Compensation Division oversees workers’ compensation in Hawaii. If you are injured at your workplace, report to your immediate supervisor or employer. The employer will then file an "Employer's Report of Industrial Injury/Illness'' (WC-1) with their insurance provider. When you get treatment, notify your medical provider that it is a work-related injury so that the medical reports and bills can be sent to your employer's insurance carrier.
If your employer fails to file the report, you can contact the nearest Disability Compensation Division office and file an "Employee's Claim for Workers' Compensation Benefits" (WC-5).
Frequently Asked Questions About Workers’ Compensation Insurance in Hawaii
MoneyGeek answered commonly asked questions to help you learn more about workers' comp insurance in Hawaii.
About Melissa Wylie
- biBERK. "Workers' compensation Insurance." Accessed May 25, 2023.
- Hawaii.gov. "Disability Compensation Division FAQs." Accessed May 25, 2023.
- Hawaii.gov. "Highlights of The Hawaii Workers' compensation Law." Accessed May 25, 2023.
- Thimble. "Workers' compensation Insurance." Accessed May 25, 2023.
- U.S. Bureau of Labor Statistics. "Injuries, Illnesses and Fatalities: Latest Numbers." Accessed May 25, 2023.
- U.S. Bureau of Labor Statistics. "State Occupational Injuries, Illnesses and Fatalities." Accessed May 25, 2023.