Hawaii workers' compensation insurance: Your ultimate resource
Everything to know about workers’ compensation for
Hawaii
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
Hawaii
's workers' comp laws?
Known for its breathtaking landscapes and vibrant culture, Hawaii is a tropical haven with a distinct appeal. From the world-famous beaches of Waikiki to the volcanoes of the Big Island, the Aloha State owns a wealth of natural wonders and rich history.
With industries rooted in tourism, fishing and agriculture, Hawaii offers various opportunities for businesses to flourish. When it comes to protecting your business and employees, choosing the right workers' compensation insurance is essential.
What is workers' compensation?
Workers' compensation is a state-mandated insurance program for employers with one or more employees. It’s designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Full, part-time, permanent and temporary workers are considered employees under Hawaii workers’ compensation law.
Without workers’ compensation, the cost of a work-related injured or ill employee’s medical treatment could become the responsibility of your business.
Hawaii workers' compensation laws
The State of Hawaii Department of Labor and Industrial Relations is responsible for administering the workers’ comp law in Hawaii. The law requires employers with one or more employees to be covered by an active workers’ compensation insurance policy.
Workers’ comp coverage can be obtained through a partner like EverPeak Insurance. The Disability Compensation Division can approve self-insured requests.
Who is covered and exempt from
Hawaii
workers' comp?
Who is covered?
Policies include protection for full and part-time workers.
Some exemptions from workers’ comp in Hawaii may include, for example:
- Voluntary or unpaid workers for a religious, charitable, educational or nonprofit organization
- Student workers performing services for a school, university or college club in return for room, board or tuition
- Certain domestic workers
- Real estate brokers paid solely on a commission basis
Covered injuries and illnesses
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases that may develop over time due to job conditions.
Benefits provided
Hawaii workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Death benefits
- Medical treatment for work-related accidents, injuries and/or illnesses
- Temporary disability benefits
- Permanent disability benefits
- Vocational rehabilitation
- Benefits to surviving dependents
Hawaii workers’ compensation rates
The weekly compensation rate is 66 ⅔% of the employee’s average weekly wage, not to exceed a maximum amount set by the state law.
Find more information on Hawaii workers’ compensation benefit rates.
How much does workers’ comp cost in
Hawaii
?
How do you file a workers’ compensation claim in
Hawaii
?
Filing a workers' compensation claim
In the event of a work-related injury or illness:
Step 1: Employee reports injury to employer
Employees in Hawaii should report their injury to their employer immediately.
Step 2: Seek medical care
The employee should immediately seek medical attention.
Step 3: Employer reports injury
Once notified of the injury, employers should file a report of the accident within seven working days to their workers' compensation insurance partner.
Step 4: Receive benefits
If the workers’ compensation claim is accepted, an injured employee may begin to receive workers’ compensation benefits, such as lost wages and medical benefits.
Step 5: Return to work
Following their recovery, a worker is expected to resume work safely. If an employee is unable to return to their previous position or any other type of work due to their work-related injury, they may be entitled to permanent total disability benefits.
Choosing a healthcare provider
In Hawaii, injured workers may obtain treatment from a physician of their choice. They may change physicians once but must notify their employer’s insurance partner before making the change. Any other change in physician will require approval from the insurance partner first. The physician may also refer the injured employee to other specialists with the insurance partner's approval.
Compensation for missed work
- Less than three days: They are not eligible for temporary total disability payments.
- More than three days: They are eligible for lost time benefits beginning on the fourth day.
Resolving disputes
If an employee or employer wishes to dispute a claim, they can contact the Disability Compensation Division for assistance.
How to get workers' compensation
Insurance requirements for employers
Generally, employers in Hawaii with one or more employees must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.