Legally required vs. strongly recommended vs. optional — broken down by type, with real costs, examples, and exactly where to get each one. Click any section to expand.
Covers third-party claims of bodily injury, property damage, and personal injury. If a customer slips in your store, an employee damages a client's property, or someone claims your advertising harmed them — general liability covers legal defense and settlements.
Online in minutes: Hiscox, Next Insurance, Thimble. For custom pricing: a local independent insurance broker. Most landlords require a Certificate of Insurance (COI) naming them as additional insured — all these providers can issue one quickly.
Covers medical bills, lost wages, and rehabilitation costs when an employee is injured on the job or develops a work-related illness. Required in most states for any W-2 employees — penalties for non-compliance are severe.
Errors and omissions (E&O) insurance covers claims that your professional services caused a client financial harm. Critical for any business where you give advice, provide expertise, or deliver a service that a client depends on.
A web designer delivers a website late, causing the client to miss a major product launch. The client claims $85,000 in lost revenue. Without E&O, the designer pays legal costs and any settlement personally. With E&O, the insurer handles defense and settlement up to the policy limit.
A BOP bundles general liability and commercial property insurance into one policy at a discounted rate — typically 10–15% cheaper than buying them separately. Ideal for any business with a physical location, equipment, or inventory.
Hawaii is one of only 5 states (along with CA, NJ, NY, and RI) that requires Temporary Disability Insurance. TDI covers employees who can't work due to a non-work-related illness or injury — think pregnancy, surgery recovery, or a car accident outside of work hours.
Covers the costs of a data breach or cyber attack — notification, recovery, legal defense, and business interruption. If you store any customer data, take online payments, or operate primarily online, this coverage is increasingly important.
Hawaii requires businesses to notify affected residents of a data breach "in the most expedient time possible." Cyber liability insurance covers the cost of this notification process — which can be significant.
What your specific type of business actually needs — minimum required vs. recommended full coverage.
Hawaii has some of the most employer-friendly — and most employer-required — insurance rules in the country. Here's everything that applies specifically to Hawaii businesses.
Legally required for Hawaii employersOnce an employee works 20 or more hours per week for 4 consecutive weeks, Hawaii's employer insurance requirements kick in for that employee. This includes workers comp, TDI, and the Prepaid Health Care Act. Part-time employees under 20 hours/week are generally exempt — but track hours carefully.
Typical annual costs for a solo founder or small business with 1–5 employees in Hawaii. Actual costs vary by industry, revenue, claims history, and coverage limits.
| Coverage type | Typical annual cost | Standard limits | Required? |
|---|---|---|---|
| General liability | $400–$800 | $1M/$2M | By most landlords |
| Workers comp | 1–5% of payroll | Statutory limits | Yes (Hawaii) |
| Hawaii TDI | $50–$200/employee/yr | 58% of wages / 26 wks | Yes (Hawaii) |
| Professional liability (E&O) | $500–$2,000 | $1M per claim | Service businesses |
| BOP (GL + property) | $500–$2,500 | Varies | Physical locations |
| Cyber liability | $500–$1,500 | $250k–$1M | Digital businesses |