Small businesses play a critical role in Hawaii’s economy. According to the Small Business Administration (SBA), there are currently more than 126,600 small businesses in Hawaii, representing 99.3 percent of all businesses. Just like businesses in any other state, business owners in the Aloha State require adequate insurance coverage to protect against a wide range of risks.
Not every Hawaii business owner requires the same type of insurance coverage. Learn more about the importance of having business insurance and the types of policies that a business owner should consider.
Importance of Business Insurance
It is not uncommon for businesses to ask “why do I really need insurance?” The simple answer is that accidents can occur at any time. Business insurance can help cover the cost of damages that a business owner would otherwise have to cover out-of-pocket. There are also other reasons for purchasing business insurance policies:
- It is required by law. In Hawaii, some types of business insurance are required by law, such as workers’ compensation.
- It protects employees. If an employee suffers a work-related illness or injury, insurance can help cover missed wages and medical care.
- It protects customers. A business owner’s policy (BOP) can protect a business from property damage, bodily injury, product liability and advertising injury.
- It may be in the contract. Businesses that rent office space or have contracts with other businesses may be required to have business insurance.
- It provides peace of mind. There are business insurance policies to protect against all types of events, from fires and flooding to tornadoes and lightning.
What Types of Business Insurance Are Needed?
There are several types of business insurance that business owners in Hawaii should consider obtaining:
Business Owners Policy Insurance
A business owner’s policy combines several insurance types, such as general liability, commercial property insurance and business income insurance, into a single convenient policy. Some policies also provide extra coverage options, such as cyber liability, accounts receivable, equipment breakdown, employment practices liability, and personal and advertising injury.
Commercial Auto Insurance
Commercial auto insurance is used to cover vehicles that are owned or used by a business. A standard commercial auto policy provides coverage for liability damages, comprehensive physical damages to a business vehicle, and medical expenses for injuries sustained by occupants of the business vehicle. Hawaii business owners should consider obtaining commercial auto insurance if they have vehicles that they use for business, are registered commercial and carry a commercial license plate.
Commercial Property Insurance
Commercial property insurance protects a business’s physical assets from storms, theft, burst pipes, vandalism, fires, explosions and similar threats. Most standard commercial property policies do not cover floods and earthquakes unless these perils are added to a policy at an additional cost.
Commercial property insurance covers a wide range of assets, such as furniture, equipment, computers, exterior signs, fencing and landscape. It also covers inventory, important documents and other people’s property. The cost of a commercial property insurance policy is based on several factors, such as the location of the business, occupancy, construction, and amount of theft and fire protection.
Commercial Casualty Insurance
A commercial casualty insurance policy provides business owners with broad protection against losses from property damage, personal injuries and other legal liabilities that may arise from these incidents. While policies can vary, this type of insurance typically comes into play when a third-party related to the business suffers an injury.
Some of the most common types of commercial casualty insurance include general liability insurance, errors and omissions insurance, management liability insurance, excess liability, employers’ liability insurance and specialty coverages that are unique to the business.
Commercial Umbrella Insurance
Commercial umbrella insurance provides business owners with an additional layer of liability by covering expenses that may go beyond standard liability coverage limits. A commercial umbrella insurance policy covers many of the same types of expenses as business liability insurance, such as attorney fees, medical expenses and other damages a business owner could encounter when faced with a lawsuit.
Why Choose Atlas for Business Insurance?
Atlas Insurance Agency has been assisting Hawaii business owners with their business insurance needs for more than 90 years. Businesses face a range of risks every day and Atlas offers the support these businesses need most. Work directly with an experienced insurance agent to build an insurance package that includes the best coverage solutions for the specific business.
Atlas offers many types of business insurance policies, such as commercial auto insurance, BOP insurance, commercial casualty insurance, commercial property insurance and more.
Get an Insurance Quote Today
The financial consequences of an accident, injury or another mishap could potentially wipe out a business’s assets and destroy its reputation. The right insurance policies can help protect Hawaii business owners against the unexpected costs of running a company.