Best Workers' Compensation Insurance in Hawaii (2023)

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.

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.

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.

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.

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.

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.

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.

Factors like employee count, payroll costs and more impact how much each business pays for workers' compensation insurance.

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.

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.

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).

MoneyGeek answered commonly asked questions to help you learn more about workers' comp insurance in Hawaii.