Hawaii Business Insurance Guide 2026

Who must carry it: 1 or more employees (Hawaii Disability Compensation Division: About Workers' Compensation (WC)).

Any employer, other than those excluded (section 386-1), having one or more employees, full-time or part-time, permanent or temporary, is required to provide WC coverage for its employees.

Source: Hawaii Disability Compensation Division: About Workers' Compensation (WC)

Coverage is bought from an authorized insurer or provided through director-approved self-insurance (Hawaii Disability Compensation Division: About Workers' Compensation (WC)).

Exemptions and exclusions

The division's FAQ lists excluded employment, including unpaid volunteers for religious, charitable, educational or nonprofit groups; certain student workers; clergy; domestic workers earning less than $225 in cash per calendar quarter; domestic workers of public welfare recipients; certain 25% stockholders and all 50% stockholders; and real estate salespersons and brokers paid solely on commission. An employer may elect to cover excluded employees (Hawaii Disability Compensation Division FAQ).

The agency to ask is the Hawaii Department of Labor and Industrial Relations, Disability Compensation Division. The workers' compensation guide covers what a policy pays, and the workers' comp calculator works through payroll, rate and modifier figures you enter.

Hawaii sets these minimum auto liability limits:

• Bodily injury liability: $40,000 per person and $80,000 per accident
• Property damage liability: $20,000 per accident
• In force: for new and renewal policies from January 1, 2026 (Act 138, SLH 2024); the earlier minimums were $20,000, $40,000 and $10,000
• Source: Hawaii Revised Statutes § 431:10C-301(b) (Hawaii State Legislature)

A policy must also include personal injury protection (HRS § 431:10C-301(a)), and the Insurance Division's 2026 sample-premium publication lists $10,000 of personal injury protection among its minimum coverages. Uninsured and underinsured motorist coverage is included unless rejected in writing (HRS § 431:10C-301(b)). Ask your insurer whether these also apply to your commercial and fleet policies.

Vehicles used commercially or for hire can face different or higher federal or state requirements; the commercial auto guide explains what to compare.

Hawaii's Temporary Disability Insurance (TDI) law, enacted in 1969, requires employers to provide partial wage-replacement coverage for eligible employees' non-work-related injury or sickness, including pregnancy (Hawaii DCD: about TDI). Employers may withhold up to half the premium but not more than 0.5% of weekly wages, capped at $7.50 a week in 2026 (Hawaii DCD 2026 wage base and deduction). Hawaii has no state paid family leave insurance program (NCSL; U.S. Department of Labor Women's Bureau).

What employers do: Provide TDI coverage for eligible employees through an insurance carrier or a Division-approved self-insured plan (Hawaii DCD: about TDI); any employee contribution is limited to half the premium, not more than 0.5% of weekly wages ($7.50 maximum weekly deduction in 2026) (Hawaii DCD 2026 wage base and deduction).

Under the statutory plan, benefits run from the eighth day of disability for up to 26 weeks, at 58% of the employee's average weekly wages up to the maximum weekly benefit (Hawaii DCD: about TDI).

Your trade license, lease or client contracts in Hawaii can set their own conditions, for example general liability limits or certificate wording. Keep track with the certificate of insurance checklist, and see the requirements-by-state guide if you work across state lines.

• Workers' compensation: Hawaii Department of Labor and Industrial Relations, Disability Compensation Division
• Auto liability minimums: Hawaii Revised Statutes § 431:10C-301(b) (Hawaii State Legislature)
• Paid leave and disability insurance: Hawaii Department of Labor and Industrial Relations, Disability Compensation Division

Our state requirements checklist turns your employee count and vehicle use into questions for those offices. To ask PolicyBenchmark for a follow-up about your Hawaii business, request coverage help.