Hawaiʻi’s economy continues to grow despite several challenges posed throughout the year like the pandemic, the Maui wildfires, and a decline in travel from Japan.
In the fourth quarter 2023 Statistical and Economic Report published by the Department of Business, Economic Development, and Tourism (DBEDT), economic growth projections were revised upward to 1.9% for 2023 and the current forecast indicates that Hawaiʻi’s economy will fully recover by 2025.
Over the next decade, economists predict that several emerging industries including real estate, tourism, film, manufacturing, renewable energy, and many more, will see rapid growth that will help diversify Hawaiʻi’s economy.
Find out what business insurance coverage solutions could help you stay protected from common risks in your industry.
Insurance Coverage Solutions for Hawaiʻi’s Emerging Industries
A new business faces a wide range of risks, some of which can have devastating outcomes. In many locations, startups regularly experience cyber security issues, operator errors, legal liabilities, and new employee workplace injuries.
In Hawaiʻi, there are additional risks for emerging businesses, such as those related to the weather and the land. According to the Federal Emergency Management Agency (FEMA), approximately 43% of companies don’t reopen following a disaster, and an additional 29% fail within two years.
With the right protection, your business can recover from risks. However, having the right insurance is an important part of any successful business plan. You must also be open to adjusting your insurance needs as your business grows or changes.
If your business falls into one of the following sectors or another one of Hawaiʻi’s emerging industries, consider using any combination of innovative insurance coverage solutions.
Technology
Businesses in almost every field require protection against data breaches, electronic vandalism, and similar threats that could result in significant financial losses.
However, those directly in the field of technology are particularly vulnerable. A 2023 Business Impact Report showed that 20% of small businesses suffered a data breach in the past year, 29% had a security breach, and 24% experienced both.
Cyber liability insurance offers a solution to many technological threats. With a cyber liability policy, your business is covered if you are implicated in a privacy or security breach, social engineering incident, ransomware attack, or are affected by malware from cyber criminals.
Health and Wellness
Health and wellness businesses range from yoga studios and massage therapy services to psychology clinics and rehabilitation centers. While these businesses are designed to improve our health and well-being, they are not without risk.
Companies in this sector can benefit from carrying commercial general liability (CGL) insurance, which provides financial coverage against common liability risks.
Healthcare professionals should also have errors and omissions (E&O) insurance to protect against claims of negligence, errors, and omissions.
Education
By 2031, 72% of U.S. jobs will require post-secondary education and/or training, according to a Georgetown University Center on Education and the Workforce forecast. Businesses in the education industry can prepare for this influx of students by protecting their business in the present.
Educational institutions such as charter schools, trade schools, vocational schools, and private non-profit schools and universities should carry general liability insurance to protect against third-party claims of bodily injury, personal injury, and property damage.
Property insurance can help cover damage to buildings and their contents due to covered perils such as vandalism, fire, and natural disasters.
Renewable Energy
Hawaiʻi was the first state determined to use 100% clean renewable energy for electricity. With this move away from fossil fuels, many local businesses are eager to do their part to reach a net-negative emissions goal.
The right insurance bundle can help emerging businesses in this industry stay protected from unexpected events. Business income insurance can help cover lost income and operational expenses if the business is forced to shut down temporarily.
Product liability insurance can also prove useful for protecting against claims related to defects in products supplied or sold.
Manufacturing
Hawaiʻi’s manufacturers account for approximately 1.63% of the state’s total output and employ 2% of its workforce. Due to the various sectors of this industry and the many facets of associated risks, new manufacturing businesses require custom insurance solutions, such as equipment damage, cyberattacks, product recalls, and employee injuries.
Recommended insurance coverages for manufacturing include but are not limited to business interruption, commercial property, commercial auto, and commercial general liability. As large claims can surpass existing coverage limits, umbrella insurance can help supplement other business policies.
Drive Growth with Innovative Business Insurance Products
The right insurance products can help emerging businesses mitigate common risks and protect their assets. This allows your company to focus on innovation and expansion without the fear of catastrophic financial loss. Business insurance also promotes continuity by covering unexpected events, such as legal claims and property damage.
Proper coverage allows your business to confidently enter new markets, pursue growth opportunities, and invest in new technologies. Having a strong insurance package can also improve your business’s credibility and build trust with existing and potential clients and partners.
Let Our Experienced Agents Support Your Insurance Needs
Insurance provides an innovative solution for stability and security as your business grows which is needed for long-term success. As the largest and most established insurance agency in Hawaiʻi, Atlas leverages its strong local roots and global strategic partnerships to provide growing businesses with policies designed to align with their needs and level of risk.
Contact Atlas today at (808) 400-6680 to discuss your insurance needs.