Hawaii workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Hawaii employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Workers’ compensation helps cover a portion of an employee’s wages if they’re injured or become ill due to work. It protects your team and your business. With coverage in place, employees typically can’t sue their employer over workplace-related incidents.
If you operate a business in Hawaii and have one or more employees – whether they’re full-time, part-time, temporary, or permanent – you’re required to carry workers’ compensation insurance, unless specifically exempt under state law.
Common exemptions include:
Unpaid or volunteer workers at religious, charitable, or educational institutions
Students working for schools in exchange for tuition, room, or board
Clergy members (ministers, priests, rabbis)
Domestic workers earning under $225 per calendar quarter
Some stockholders and commission-based real estate professionals
Hawaii employers have two options:
Buy coverage from a licensed private insurance carrier (employees can’t be asked to pay any part of the premium).
Self-insure, if you can prove your business has the financial resources to cover claims and meet the requirements set by the state’s director.
Skipping workers’ comp is a costly risk. Employers without coverage can face fines of $100 per employee per day, and more seriously, open themselves up to lawsuits for unpaid benefits.
If an employee is hurt on the job, they should report it to their supervisor right away. The employer must then complete and file the “Employer’s Report of Industrial Injury” (WC-1) within seven working days with the Disability Compensation Division—and provide a copy to the employee.
Workers’ comp isn’t just a legal requirement—it’s a vital safety net. It ensures that your employees get care and support when they need it most, and it protects your business from legal risk. If you’re unsure where to start, Beyond offers guidance, resources, and tools to help you stay compliant and confident.
