Hawaii Workers' Compensation

Hawaii, like most states in the US, has many mandates and requirements that businesses should fulfill before they can begin operations. One of these conditions is getting Workers’ Compensation insurance, which is part of Hawaii Workers’ Compensation laws. Securing a policy before opening your business can be essential, so you might want to brush up on your knowledge about this subject.

PolicySweet® has provided Workers’ Compensation policies to businesses nationwide, and we can help you meet Hawaii state regulations surrounding Workers’ Comp. In the state of Hawaii, you could be required to obtain Workers’ Comp if you have one of more employees. We can help you secure your own Workers’ Compensation insurance plan if you wish to establish a company in the state or already have an existing business. Contact us now to get a quote!


What Is Workers’ Compensation Insurance?

Accidents can happen in your workplace, no matter how thorough you’ve been with safety standards and precautionary measures. When an accident happens, your workers could get injured, and you may be liable to pay for the damages they suffered, especially if the injuries happened during their hours of work. This condition is what the Hawaii Workers’ Compensation law outlines.

Paying for these damages can result in financial loss for your company. That’s why Workers’ Compensation insurance exists. This policy serves as your safety net so you can receive payments for workplace accident claims.

Unique Considerations in Hawaii Workers’ Compensation Insurance

The details about matters related to Workers’ Compensation coverage vary from state to state. Here are some of the unique characteristics in Hawaii that may not be present in others:

  • Obtaining Insurance: In Hawaii, there are two ways you can get insured. First, you can work with a commercial insurance provider like PolicySweet. Lastly, if your company is eligible, you may apply for self-insurance.

  • Exemptions: Not all Hawaii businesses are required to get Workers’ Compensation insurance. Some businesses, like those without employees, could be exempt. However, all qualified businesses should provide insurance or you could face penalties of $100 for each employee per day without coverage.

  • Burden of Proof: Unlike other states where the injury should be proven by the injured party, Hawaii mandates that the statutory presumption puts the burden of proof on the employer. The business owner should present evidence that contradicts the injured workers’ claim to rebut the case.

What Is Covered by Hawaii Workers’ Compensation Insurance?

Hawaii Workers’ Compensation laws work similarly with other states’ rules and regulations. Companies may be required to provide coverage for the following damages caused by accidents, hazardous working conditions, and other factors that could have injured a worker:

Medical Bills

Sustaining an injury means that an employee may spend money on medical exams, consultations, medication, and other medical services. These expenses can pile up into an expensive bill. To help cover these expenses, a worker can file a claim and may receive compensation for their medical bills associated with the injury.

Lost Wages

When a worker gets injured, they might need some time off to recover. The employee might also face some physical challenges that can prevent them from performing their role or showing up during their shift. Due to these issues, the worker may not be able to earn income for days they are recovering. To help get back these lost wages, the employee can file a claim for Workers’ Compensation to help cover their missed wages.

Continuing Treatment and Therapy

There are some types of injuries that can take more than a few days to completely heal. Others may even cause physical trauma that might need several sessions of physical therapy to help treat the condition. These additional expenses can bring up the cost of recovery. As the employer, you may need to provide additional compensation for the ongoing treatments.

Exceptions in Hawaii Workers’ Compensation Coverage

Not all damages are covered by Workers’ Compensation plans. A worker may not be eligible for compensation if they suffered injuries in the following circumstances:

  • The injury happened after an employee’s contract was terminated.
  • The injury was intentionally done.
  • The employee became injured because of their failure to follow operation protocols for equipment, machinery, and other potentially dangerous company assets.
  • The worker suffered injuries because of using controlled substances on site or during their shift.
  • The employee ignored safety protocols and guidelines, which resulted in the injury.
  • The worker suffered injuries from an incident they instigated.

Does Your Hawaii Business Need Workers’ Compensation Coverage?

As mentioned, there are some businesses that aren’t required to secure Workers’ Compensation insurance. Here are some businesses that could apply for exemption:

  • Sole proprietors that do not have employees
  • Partners of a partnership company
  • Corporate officers that own at least 50% of the company

Request a Quote for a Workers’ Compensation Insurance Plan

Before you start a business in Hawaii, you may want to protect your business with insurance coverage to help avoid issues in the future. If you’ve been thinking of where to get Workers’ Compensation, look no further than PolicySweet. We’ve helped many companies in industries like cleaning, retail, food services, landscaping, and more! If you would like to learn more about our insurance plans or receive a quote, get in touch with us today.

Please Note: State-specific information is subject to change at any time. Always consult with your state’s official information and resources for the most accurate information.