Best Small Business Insurance in Hawaii

NEXT leads Hawaii business insurance with top customer service rankings, competitive rates and solid coverage options. Simply Business and Coverdash also provide reliable coverage for island entrepreneurs.

Note: This data represents a small business with 2 employees, $150,000 in payroll and $300,000 in annual revenue. All scores were calculated for four of the most common coverage types in the industry across 79 industries in the United States.

Business insurance costs in Hawaii range from $75 monthly for workers' compensation to $155 for a business owner's policy. Industry and risk factors drive these price differences. We found average business insurance costs for Hawaii companies for commonly needed coverage are as follows:

• General Liability Cost: $112 monthly or $1,343 annually
• Workers' Comp Cost: $75 per month or $904 per year
• Professional Liability (E&O) Cost: $81 per month or $967 annually
• Business Owners Policy (BOP) Cost: $155 monthly or $1,858 annually

Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Hawaii research covers the companies we surveyed and won't include every rate available to your specific business.

Business insurance costs in Hawaii depend heavily on your industry and chosen coverage types. Monthly premiums range from $6 to $1,355, while annual costs span $75 to $16,258. Compare Hawaii commercial insurance costs for your specific coverage type and industry below.

Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Hawaii research covers the companies we surveyed and won't include every rate available to your specific business.

Multiple business insurance cost variables in Hawaii shape your premium:

• Hawaii Workers' Compensation Laws: Hawaii requires any employer with one or more employees to provide workers' compensation coverage, whether full-time, part-time, permanent or temporary, making it one of the strictest workers' comp mandates in the nation. Most employees must be covered unless they legally opt out or fall under specific exemptions like volunteer workers, students working for tuition, or corporate officers meeting exemption criteria. The 1915 law places statutory presumption of compensability on employers, requiring them to provide benefits without regard to fault while prohibiting employees from filing civil action for work injuries.
• Volcanic, Tsunami, and Seismic Hazards: Hawaii faces multiple natural catastrophe risks including volcanic eruptions, earthquakes, and tsunamis unique to its Pacific Ring of Fire location, with the 2018 Kilauea eruption destroying nearly 2,000 structures including 700 homes. Standard insurance policies exclude volcanic and earthquake damage, forcing property owners to purchase separate expensive coverage if available at all. Flash floods occur eight times yearly on average, with Hawaii's small watersheds and flashy streams creating rapid runoff events that damage infrastructure.
• Remote Island Geography: Hawaii's isolated Pacific location over 2,500 miles from the mainland creates unique insurance challenges, as the state's remote geography, concentrated shoreline development, and tourism dependency heighten economic vulnerability during prolonged recovery periods from disasters. Limited repair resources, extended shipping times for materials, and scarce qualified contractors drive up business interruption exposure and claims costs. The Hawaii Property Insurance Association functions as the state's insurer of last resort for properties denied coverage by private carriers.
• Regional Cost Variations: Coastal properties throughout the islands face elevated premiums due to hurricane and tsunami exposure, while Honolulu businesses experience higher rates driven by dense urban development and increased liability from tourism foot traffic. Big Island businesses near active lava zones pay premium surcharges or face coverage denials entirely, with some properties designated in highest-risk lava flow hazard zones unable to secure affordable private insurance. Hawaii's high cost of living, expensive medical care, and elevated repair costs push workers' compensation and liability premiums above national averages across all islands.

Compare quotes from multiple Hawaii business insurers to find affordable coverage matching your specific needs. Use MoneyGeek's business insurance quote tool below to get customized rates for your Hawaii business based on your industry and coverage requirements.

Hawaii mandates business insurance for companies with even one employee, with stricter requirements than most states. Licensed contractors face additional insurance and bonding requirements to maintain their licenses and operate legally.

Business insurance in Hawaii operates with moderate regulation, giving you flexibility to choose coverage that fits your specific needs. We've analyzed what works best for the major industries driving Hawaii's economy.

Finding affordable business insurance feels overwhelming when Hawaii's unique risks and strict requirements create coverage gaps. Follow these steps to secure getting business insurance that protects your island operation and fits your budget.

NEXT, Simply Business and Coverdash lead Hawaii business insurance providers, though your ideal choice depends on industry risks, workforce size and island-specific exposures like hurricane damage or volcanic activity. Compare service quality across carriers, maximize bundling discounts and choose coverage protecting your operation without exceeding your budget.

Small business owners in the Aloha State often have questions about finding the right business insurance coverage. We answer the most common questions below:

Small business owners in Hawaii need reliable coverage that protects their operations without breaking their budgets. We designed our methodology to help Hawaii entrepreneurs navigate challenges like hurricane risks and the state's optional workers' compensation laws.

We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.

• Affordability (50% of score): We compared company rates across all coverage types to identify the most cost-effective options for small businesses that need comprehensive financial protection without overpaying.
• Customer experience (30% of score): We analyzed J.D. Power satisfaction ratings, NAIC complaint data, online review sites and independent agency feedback to assess real-world service quality when you need claims handled quickly.
• Coverage options (15% of score): We evaluated the breadth of coverage types, policy limits and add-on options available to accommodate growing businesses and Hawaii's diverse industry needs.
• Financial strength (5% of score): We reviewed AM Best ratings, Moody's assessments and company financial reports to ensure insurers can reliably pay claims, especially important given Hawaii's frequent weather disasters.

This approach helps Hawaii small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.