When you open your business, it’s important to get the right business insurance coverage. A good insurance policy can help protect your assets, employees, and customers in case of an emergency. But with so many insurance companies out there, it can be hard to know which one is best for you. To help break down the process, we’ve evaluated the best business insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.
Coverwallet began its journey in New York City in 2015 operating under the
Aon Insurance banner. At Coverwallet, you can access everything you need to
keep your company well-protected at an unbeatable price.
With a 100-year history of insuring businesses, Hiscox is well-known across
America and globally. With more than 500,000 small business customers,
Hiscox is fully aware and trained in the unique risks a business can face.
Thimble provides business insurance that can be tailored to your business by
the year, month, day, or even the job. At Thimble, the process to getting
the right business insurance is simple, scalable, and flexible.
What are the requirements for business insurance in Hawaii?
Here are the six requirements for business insurance in the state of Hawaii:
All businesses have to have a Workers’ Compensation Insurance policy called “coverage” in place. This is mandated by law and protects employees from being injured on the job.
Businesses must also carry insurance policies for their vehicles, whether they’re owned, leased, or rented by a company.
Employers must also cover their liability for their worker’s injuries. This is required by law and protects against any type of damage that may be incurred during an accident or other incident.
What are the types of business insurance in Hawaii?
Below are some of the most common types of business insurance, what they cover and exclude.
General liability insurance
Liability insurance covers third-party claims for property damage, bodily injury, and personal injury (e.g., slander or libel). If you don’t have this coverage and a customer sues you for damaging their furniture when moving it into their home, you would be responsible for paying for the damages out of pocket. General liability insurance also pays medical bills if a client or customer is injured at your place of business.
The following is a list of some general exclusions that may be included in your policy:
Bodily injury and property damage that you intentionally cause. In other words, you deliberately injure someone or damage their property.
Purposefully violating the law. If you do something illegal and get sued because of it, your policy won’t cover it.
Employment-related practices or claims.
Certain bodily injuries or property damage that occurs during the course of construction or renovation projects are not covered by general liability insurance (such as certain pollution-related losses).
Damage to the property you own or rent is not covered by general liability policies. If you have a vehicle accident while making deliveries, such damage would not be covered under your business insurance policy.
Professional liability/errors and omissions
Also called professional indemnity insurance, this coverage protects businesses against negligence claims. For example, if a client claims they lost money because of poor advice or an error on your part, there could be serious financial consequences depending on the amount of damages claimed. Professional liability insurance helps pay these costs.
The policy doesn’t protect you from claims involving any damages which occurred before the effective date of your coverage.
Coverage is specifically excluded for any dishonest, fraudulent or criminal acts.
The policy does not protect you against bodily injury, property damage or personal injury caused by a medical professional. These are covered under malpractice insurance.
Claims related to libel and slander, copyright infringement and patent infringement are also excluded from professional liability insurance.
Commercial property insurance
Property insurance protects your company’s physical assets — furniture, equipment, inventory, and other property — against fire, theft, and other types of losses.
Commercial property insurance policies don’t cover everything. Here are some common exclusions:
Earth movement, such as earthquakes
Floods
Losses caused by neglecting to care for your property
War
Nuclear hazards
Government action
Business owner’s policy (BOP).
A BOP combines general liability coverage with commercial property insurance into one convenient package. It offers business interruption insurance to get you back on your feet after a disaster and covers damages to your building or office equipment due to events like a fire or storm. The advantages are that it typically costs less than buying separate policies and provides more comprehensive coverage than general liability alone.
However, these policies do have limitations. They often exclude coverage for business income and extra expense, equipment breakdown, mechanical breakdown, employee dishonesty, and money and securities, among others.
Worker’s compensation insurance.
If employees are injured while on the job, workers’ compensations pay their medical bills and replace lost wages during their recovery. The following are some common examples of exclusions in this policy:
Injuries sustained during a criminal act. If your employees get injured because they participated in a criminal act, you will not be covered.
Injuries sustained after an employee has been fired or laid off. If an employee gets injured or dies after being fired or laid off, the employer is absolved from any liability.
Injuries sustained while commuting to and from work (unless it was in a company car or company-provided transportation).
How much does business insurance cost in Hawaii?
Your business insurance rates are based on a multitude of factors. The primary consideration is the type and amount of coverage you need. Other factors that affect the cost of business insurance include:
Your industry. Certain industries face higher risks than others, so their insurance policies will be more expensive.
The size of your business. Small businesses with fewer than 100 employees can get small business insurance policies which generally cost less than large commercial policies. Large national companies pay more for their policies as well because they’re viewed as a greater financial risk to insurers if they were to file a claim.
Your location: Insurance companies look at specific locations and address to determine whether they have a higher crime rate or pose safety risks such as floods or earthquakes. If you choose to rent an office space in a high-crime area or one that is prone to natural disasters, it will increase your insurance premiums.
The number of employees: Businesses that employ full-time workers are more likely to experience lawsuits from their employees due to workplace injuries or discrimination claims than those that employ independent contractors; therefore, companies with full-time workers tend to pay higher premiums than those with independent contractors.
How to choose the best business insurance in Hawaii
There are many different types of insurance policies and coverages to choose from, and it can be hard to decide which one is best for you. Here are some tips on how to choose the best insurance coverage for your business:
Understand what type of business you own. This will help you determine which type of insurance coverage your company needs.
Do some research. Ask other business owners in the area about their insurance plans. Which ones work best for them? Which ones do they not like?
Check with other business owners in the area about their insurance plans. They may have suggestions for you.
Make sure that you have enough liability coverage in case someone gets injured on your property or if there is a fire at your business location.
Make sure that you have enough property coverage so that if something happens to your building or equipment, it will be covered under your policy.
Make sure that you have enough liability coverage in case someone gets injured on your property or if there is a fire at your business location.
