Nicknamed the “Aloha State”, Hawaii is a state that is comprised of 132 islands, rather than the eight main islands most people think of. Hawaii is possibly most known for its lush landscapes, valleys, near-perfect climate, as well as the volcanoes present on the main islands. Not surprising, Hawaii is ranked number one in terms of quality of life by the 2011 CNBC Top States for Business. Of course, one of the states larges industries is tourism, but agriculture is another top industry. The state’s main products are cane sugar, pineapple, bananas, macadamia nuts, and coffee beans. The most popular attractions in Hawaii and its associated islands are the Hawaii Volcanoes National Park, Haleakala National Park in Maui, and Pearl Harbor, just to mention a few. If you have a dream of starting a business in Hawaii, join the club. But also make sure you consider business insurance in Hawaii to ensure you can operate your business in this breathtaking location for many years to come.
Standard Business Insurance Coverages in Hawaii
Business Owners Insurance in Hawaii is an insurance policy held by an organization, also known as a BOP, as a comprehensive small business insurance package that offers various types of liability coverages in a bundle. A BOP integrates two principal coverages in a single policy: property insurance and general liability. The insurance coverage for business professional’s transfers risk away from the owner of the organization to the insurance company by offering security for various kinds of liability, such as buildings, equipment, and liabilities related to legal. Typical indemnity claims that business owners insurance coverage safeguards you from are: injury to an employee, income loss, specialized liability claims, important papers, equipment collapse, fire, authorized liability claims, employee corruption, money and securities, and property claims. Additional components for the Hawaii business may be supplemented from the original BOP coverage depending on the possible risks of the organization.
General liability insurance in Hawaii is thoughtfully organized to offer protection for small business leaders from financial burdens that can surface from careless acts, omissions, or both, caused by the company or their workers that may result in physical injury or property damage. Some types of exposures generally covered under general liability insurance in this only state that is comprised solely of islands are contractual liabilities, liabilities from merchandise sold, and accidents on the premises of the organization. The injury or damage might be from inattention or not deliberate. General liability insurance for companies in Hawaiian Islands may be a single policy or can be part of a package policy.
A package policy is a unique type of insurance policy for a business proprietor that includes two or more different kinds of insurance into one insurance policy, also called a bundle. A typical package policy in the Aloha State will combine general liability insurance (written about above) and commercial property (expounded about below); although a package policy may be organized to contain virtually every type of coverage, depending on the desires of the business. A package policy is accommodating to a small business owner as it allows them a good deal of adaptability to use the policy for the distinguishing needs and risk exposures of the entity.
Commercial Property Insurance in Hawaii is obtainable protection for a variety of Honolulu, Hawaii-based commercial property, and includes, important papers, building, materials, gear, furniture, inventory, and personal property. Commercial property insurance provides protection against various types of perils, including windstorm, hail, explosion, fire, robbery, wreckage, natural disasters, and lightning strikes. Different types of industries may benefit from this sort of insurance, including retailers (i.e. stores), not-for-profit (NPO) entities, fabricators, and service-oriented organizations.
Any company that has employees working for them, will need Workers’ compensation insurance to offer coverage against employee occupational injuries or work-related illnesses. Workers’ compensation insurance in Hawaii is a no-fault, state-mandated insurance structure that compensates workers who suffered injuries or an illness while working. Because the Hawaiian state has a requirement for any organization with employees to carry workers’ compensation, it may be subjected to fines and civil penalties if they fail to carry it, and might even cause the company to be liable for the cost of injuries sustained by their employees. By having workers’ compensation insurance in Hawaii, workers benefit from medical care and lost pay coverage with the promise that they will not sue the company as a result of the injury or illness.
In the state of Hawaii, any company owning at least one vehicle should be protected by commercial auto insurance. Commercial auto insurance in Hawaii offers financial protection to business executives and their drivers by providing coverage for a company’s use of vehicles such as trucks, vans, and cars. Commercial auto insurance provides protection against damages and medical costs that result from vehicle accidents, as well as vandalism and damage from hail storms and similar natural disasters. Coverage for businesses in Hawaii include a variety of vehicles whether they are rented, owned, leased, or hired by the company, along with vehicles owned by the workers and used for business purposes. For this latter reason, it’s recommended that organizations in Maui, Oahu, or anywhere else on the Hawaiian Islands acquire a commercial auto insurance policy if employees use their own vehicle for business related tasks; this is referred to as non-owned commercial auto insurance.
Commercial umbrella insurance in Hawaii fills the gap between where your general liability insurance begins and your commercial auto insurance or other liability insurance stops. Your organization will benefit from umbrella insurance as a result of the coverage limits of your existing liability policies, and because they may not cover all expenses if an unfortunate or unanticipated event occurs. Commercial umbrella insurance in the islands of Honolulu, Hawaii is a vital resource that fills in the gaps and covers various exclusions in your primary business liability coverage. Umbrella insurance is a marvelous way to have additional protection for property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in Hawaii to Consider
Errors and Omissions insurance policies offer Hawaiian companies and individuals protection against lawsuits and claims completed by clients or customers for neglectful duties, slacking acts, errors, and oversights made through business operations that resulted in a loss of salary or output on the part of the customer or client. Errors and Omissions insurance in Hawaii covers legal defense and court costs, along with settlements which are specified in the insurance contract. Medical practitioners often require malpractice insurance, so small business owners that offer services or consulting advice, either directly or with subcontractors, should consider errors and omissions insurance.
Professional liability insurance in Hawaii provides additional protection for professionals, such as financial analysts, auditors, and general contractors, from having to pay the total legal cost of defending against a claim of negligence, error, failure to perform, or omission made by a client as well as damages owed in that claim. The coverage’s principal focus is on the financial loss on the part of the client from this type of alleged claim with respect to a product or service provided by the employee. Professional liability insurance may provide claim coverage, even if the legal actions turn out to be unconfirmed. Professional liability insurance in Hawaii is required by law in various types of professional practices, including medical and legal, but is also required by contract in other industries.
Employment Practices Liability Insurance in Hawaii, also known as EPLI, provides small business owners with security against accusations of discrimination, wrongful termination, sexual harassment, breach of contract, pay law violations, false imprisonment, emotional suffering, libel, slander, mental torment, neglectful hiring and promotion decisions, and offensive claims. Employment practices liability insurance is based on the laws, acts, and protection from VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act, and Family and Medical Leave Act — all of which the Equal Opportunity Employment Commission (EEOC) enforces.
Fidelity Bonds in Hawaii
Fidelity bonds in Hawaii are a specific type of insurance offered to small businesses in order to protect against losses, like fraud, embezzlement, or theft by one or more professionals. Since reimbursement from employee dishonest practices is typically not available due to the cash already being spent, fidelity bonds are an important safeguard for a small business owner who would otherwise have to suffer these monetary losses. Even if your business has extra security against these kinds of acts such as employee screening, internal controls, and careful supervision, it isn’t always enough. Losses suffered from worker thefts of money, property, or securities are all covered under fidelity bonds insurance in Hawaii. There are three principal types of fidelity bonds including business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in Hawaii
A surety bond is an essential agreement or contract shared between three parties: the principal, obligee, and surety (insurance company). It represents the guarantee they will pay a specified total if a party fails to meet a commitment, like fulfilling the terms of the contract. A surety bond protects the receiver from loss if the contract is not fulfilled, while the surety company takes on the liability for not performing. A surety bond is normally required for financial compensation. Owners of Hawaii-based companies may require a surety bond to guarantee payment of utility bills or state sales taxes, while a contractor may need to post a bond to secure work or be qualified for licenses. While surety bonds in Hawaii are more commonly used in the construction industry, surety bonds are also used by mortgage brokers, medical suppliers, automobile dealerships, health club owners, notary publics, and others. Since many small companies need and make use of bonds, a wide array of types and features of surety bonds in the state offer a range of guarantees.
Whether you own a surfboard shop in Honolulu or operate a coffee shop in Pearl City, your business needs to be properly protected by business insurance. As is required by the state of Hawaii, you more than likely have certain standard insurance policies to protect against certain basic liabilities. However, in the case of an unforeseen event or unfortunate occurrence such as damage from extreme weather conditions or natural disasters, theft, fire, fraud, or litigations, you will want additional protection. In order to safeguard your business and assets from these unfortunate events, obtain supplemental business insurance policies for optimum protection.