National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

Workers' Compensation Insurance Laws in Hawaii

In Hawaii, you must carry the state minimum limits or more of workers' compensation coverage. This applies to all businesses, with any number of employees. If you're found without coverage, it could result in fines and even misdemeanors or jail time.


Common Workers' Compensation Claims in Hawaii

The top 5 industries for fatal occupational injuries in Hawaii:

  1. Private industry
  2. Goods producing
  3. Construction
  4. Service providing
  5. Transportation and warehousing


The top fatal occupational injuries by event in Hawaii, in order:

  1. Transportation incidents
  2. Roadway incidents involving motorized land vehicle
  3. Roadway collision with another vehicle


According to statistical data, 16 workers' compensation claims turned fatal in Hawaii in one recent year.

FAQ: Workers' Compensation Insurance in Hawaii

Workers' compensation insurance pays for the medical expenses, lost wages, and funeral costs of an employee who gets injured, becomes ill, or dies due to doing their job or while on company time. This policy protects the business owner as well as the employee. 

The price of your business's workers' compensation insurance will vary depending on your field, experience, and loss history. Your rates will fall within a specific range for each job duty that applies to your business and risk factors. Here are some examples of current rates from low to high in Hawaii. Rates are per $100 of employer payroll:

IndustryLow CostHigh Cost
Retail Stores-Merchandise-Cannabis Dispensary$1.57$1.57
Warehousing & Storage Facility$4.48$4.48
Auto Service & Repair-Mechanic$1.84$1.84
Auto Body Repair$1.45$1.45
Sales Professional$0.48$0.48

Most states require workers' compensation in some form. Hawaii is no different and mandates that all employers with one or more employees carry workers' compensation coverage. 

Workers' compensation insurance helps pay for medical expenses, lost wages, and ongoing medical support of an employee who has become injured or ill at work. Here are some more specific ways coverage could be applied  when a claim arises:

  • Traumatic injuries
  • Repetitive injuries
  • Some mental or cognitive injuries
  • Occupational illnesses/diseases

Some exclusions will apply to your workers' compensation insurance as with any policy. The following incidents won't be covered under your workers' compensation coverage:

  • Intentional injuries or illnesses
  • Injuries or illnesses sustained outside of work
  • Injuries or illnesses sustained while committing a crime
  • Injuries or illnesses sustained under the influence of drugs or alcohol

Sometimes people that your business does work for require proof of insurance. This is known as a certificate of insurance and will show your workers' compensation and other policy limits along with expiration dates. You can obtain this document from your trusted independent insurance agent

Workers' compensation insurance can be confusing and pricey when you're unsure where to look. Fortunately, a local independent insurance agent can help with top-rated carrier options and competitive premiums. They work with dozens of markets and do the shopping for free.

In Hawaii, if your business has filed a workers' compensation claim when an employee sustains an injury or illness resulting from their job, the benefits are not considered taxable income. 

What Are the Best Workers' Compensation Companies in Hawaii?