Small business insurance in Hawaiʻi serves as a vital shield, guarding local businesses from the unforeseen financial burdens that life may toss our way. Regardless of the size or industry, every business in the islands faces its share of uncertainties.
Luckily, small businesses in Hawaiʻi have the option to protect their investments through comprehensive small business insurance policies.
Define the Requirements and Risks of Your Business
Before comparing business insurance policies, first consider the legal requirements. In Hawai‘i, the only state-mandated business coverage is workers’ compensation. This is a must for any business, regardless of size or employee status.
Additional insurance policies may be mandated based on specific circumstances. For instance, all vehicles owned by businesses in Hawaiʻi must be protected by commercial auto insurance. The minimum requirements for auto liability insurance include:
- $10,000 per person personal injury protection
- $10,000 per occurrence property damage liability
- $20,000 per person bodily injury liability
- $40,000 per accident bodily injury liability
A business’s insurance requirements are also influenced by its level of risk. When assessing these risks, consider factors such as industry trends, historical data, geographic location, and the nature of your business operations. Prioritize these risks according to their severity and likelihood of occurrence.
Review and Adjust Deductibles
The deductible represents the sum a policyholder must pay to the insurance company before the coverage comes into effect. Insurance costs are typically balanced in one of two ways.
Policyholders opting for lower monthly premiums generally bear a higher upfront deductible. On the other hand, those seeking a lower deductible can expect higher monthly premiums. Determine what your business can comfortably afford and select a small business insurance policy that aligns with your budget and coverage needs.
Consider Additional Coverage Options
Although small businesses in Hawai‘i are only legally obligated to carry workers’ compensation, it is often smart to explore other policies to safeguard your organization from potentially crippling risks.
Some optional business insurance policies include:
- Commercial Property Insurance – Safeguards your company’s real estate and on-site physical assets.
- Business Income Insurance – Covers the loss of business income resulting from physical property damage due to a covered event.
- Commercial Auto Insurance – Provides physical damage and liability coverage for situations and usage not covered by personal auto insurance.
- Professional Liability Insurance – Shields against incidents of negligence, personal injury, copyright infringement, and more.
- Cyber Liability Insurance – Offers protection in the event of a data breach involving sensitive customer information.
- Commercial General Liability Insurance – Shields your business against claims of bodily injury, property damage, slander, libel, and false advertising.
A knowledgeable insurance agent with expertise in the needs of small businesses in Hawaiʻi can provide recommendations for policies tailored to your unique needs.
Assess and Negotiate Premiums
While some small businesses may believe they have little control over insurance premiums, it is possible to negotiate lower rates. Once you’ve identified your business’s coverage needs, speak with an insurance agent to explore options for reducing your current premiums.
Discounts may be available to businesses willing to take proactive steps to minimize common risks. For instance, strategic property upgrades, the installation of security systems, and similar measures may lead to reduced monthly premiums.
Know When to Revisit Business Insurance
Evaluating your small business insurance should be an ongoing endeavor, not a one-time task. Dedicate time to regularly review your company’s insurance needs and make adjustments as necessary.
Consider revisiting your business insurance plan in the following circumstances:
- When there is a change in the number of employees. A significant increase in your workforce may necessitate changes to comply with insurance requirements. Ensure that you have adequate workers’ compensation coverage and liability insurance to cover all new hires.
- When business activity fluctuates. Business insurance coverage often correlates with a company’s revenue so coverage may need to be adjusted based on your organization’s profitability.
- When there is a change in vehicle use. If your business acquires or disposes of vehicles or adds or removes drivers, ensure that this information is updated to guarantee adequate protection in the event of accidents or collisions.
- When assets are acquired or sold. If your business obtains new assets or divests existing ones, update your insurance information to ensure that they are fully covered or to adjust coverage as needed.
- When your business takes on new risks. The level of risk your business faces during its operations significantly impacts insurance costs. If your business undergoes changes that introduce new or additional risks, it is necessary to reevaluate your coverage options.
Protect Your Business with Help from Atlas
While small businesses in Hawaiʻi always strive for success, unforeseen challenges can surface and create financial hardships. Small business insurance stands as the ultimate form of protection for companies in Hawaiʻi.
Reach out to Atlas Insurance Agency today to discuss your small business insurance needs. We’re here to help you choose the best business insurance in the islands. Mahalo for considering us as your trusted partner in safeguarding your business!