MoneyGeek’s analysis of the best workers' compensation insurance in Hawaii is based on insurers’ affordability, customer satisfaction, financial stability and online quote process. Thimble emerged as the best provider overall with high scores across these metrics.

All businesses with employees in Hawaii are required by law to carry workers' compensation insurance. This coverage provides financial protection for small business owners in case an employee sustains a work-related injury or illness by covering medical expenses, lost wages and potential lawsuits.

Key Takeaways

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Based on MoneyGeek’s comprehensive analysis, Thimble is identified as the best workers' compensation insurance provider in Hawaii. Evaluation metrics included affordability, customer satisfaction, financial stability, and the online quote process, where Thimble scored exceptionally well.

Ranking and Financial Stability
- MoneyGeek Score: 94 out of 100
- Financial Stability: Thimble demonstrates strong financial stability, ensuring they can meet obligations to policyholders and maintain reliable operations over time. This is a critical aspect that provides businesses with peace of mind knowing that claims will be handled efficiently and promptly.

Cost
- Average Monthly Premium: 
- Micro Business (1-9 employees): Approximately $120 per month for businesses with five employees and an annual payroll of $312,500.
- Small Business (20 employees): $319 per month, notably making Thimble the cheapest provider for this business size.
- Medium Business (100 employees): About $1,558 per month, based on an annual payroll amount of $6,250,000.

Customer Service
Thimble is known for robust customer service, providing a smooth and responsive experience from quotes to handling claims. The high MoneyGeek score reflects their commitment to customer satisfaction, responsiveness, and easy navigation through the insurance acquisition process.

Summary
Thimble excels as the best workers' compensation insurance provider in Hawaii due to its competitive pricing, excellent customer service, and reliable financial stability. These factors make it an appealing choice for businesses of varying sizes seeking dependable coverage for their employees. While average rates are provided, actual premiums may vary based on specific factors such as employee count and payroll.

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In Hawaii, Thimble stands out as the cheapest provider of workers' compensation insurance for cost-conscious businesses. With an average monthly premium of $319 for businesses with 20 employees and an annual payroll of $1,250,000, Thimble offers significant affordability compared to the average state cost of $489 per month.

For smaller businesses, specifically those with five employees and an annual payroll of $312,500, Thimble’s average monthly premium is even lower at $120. This demonstrates its competitiveness across different business sizes.

Choosing Thimble is a sensible option for cost-conscious businesses due to several reasons:

1. Affordable Rates: As the cheapest provider based on MoneyGeek's analysis, Thimble consistently offers lower-than-average rates across different employee counts and payroll sizes in Hawaii, making it an attractive choice for budget-conscious businesses.

2. Financial Protection: Despite the low premiums, Thimble provides essential coverage that includes medical expenses, lost wages, and potential lawsuit costs related to work-related injuries or illnesses.

3. Strong Financial Stability: Thimble’s high MoneyGeek score of 94 out of 100 reflects not only its affordability but also its reliability and financial stability, ensuring that businesses can trust in its capacity to settle claims.

4. Comprehensive Coverage: With a policy offering limits of $1 million each for total policy, per accident, and per employee, Thimble assures businesses of robust protection against substantial claims.

For cost-conscious businesses in Hawaii seeking dependable workers' compensation insurance, Thimble represents an optimal balance of affordability and coverage quality.

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In Hawaii, several factors influence the premiums for workers' compensation insurance, and understanding these can help businesses anticipate costs and make informed decisions. Here are the primary elements affecting these premiums:

1. Employee Count: The number of employees significantly impacts insurance premiums. Larger businesses tend to pay higher premiums because they have more employees who could potentially file a claim. However, small and micro-businesses also pay noticeable premiums based on their number of employees.

2. Annual Payroll: One of the most significant factors in determining premiums is the total annual payroll. Higher payroll results in higher premiums, as it implies more potential liability for the insurer.

3. Industry and Risk Levels: Industries with higher risks of workplace injuries, such as construction or manufacturing, typically face higher premiums due to the increased likelihood of claims.

4. Claim History: Businesses with a history of frequent claims may face higher premiums. Insurers view claim history as an indicator of future risk.

5. Coverage Limits: The limits of the policy, such as the total policy limit, the per-accident limit, and the per-employee limit, also affect premium costs. Higher limits usually lead to higher premiums.

6. State-Specific Regulations: State requirements and cost structures can vary. In Hawaii, workers' compensation rates are notably higher than the national average, suggesting that state-specific regulatory factors also play a role.

Rates can vary among businesses due to the mix of these factors. For instance, a business with a small number of employees and low payroll might find more affordable options compared to a larger business in a high-risk industry. The analysis indicated that Thimble is the best provider overall in Hawaii by offering competitive rates and maintaining strong scores in affordability, customer satisfaction, financial stability, and the online quote process. For businesses with 20 employees, the average monthly premium was noted to be around $489, significantly higher compared to the national average, reflecting both the specific cost index of Hawaii and the requirements set by state laws.

Businesses must obtain workers' compensation insurance through private insurers or self-insure if they choose, but cannot make employees contribute to premiums. Certain workers, such as those in certain nonprofit organizations, may be exempt, although businesses can choose to extend coverage to them. Overall, the importance of understanding these factors lies in the financial protection they offer to both employees and employers against work-related injuries or illnesses.

Why Trust MoneyGeek? We collected 677 workers’ compensation insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best workers’ compensation insurance companies for small businesses in Hawaii.

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Coverage costs and company information for workers' compensation insurance providers in Hawaii were last updated in 2023.

677Quotes Analyzed
 
6Companies Compared
 
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Best Workers’ Compensation Insurance in Hawaii

Thimble came out on top as the best provider for workers' compensation in Hawaii with a MoneyGeek score of 94 out of 100. Thimble’s workers' compensation insurance costs an average of $319 per month, though rates may vary based on a business's unique needs and circumstances.

How was this MoneyGeek score calculated?


1
ThimbleBest Overall in Hawaii
Score:94

5/5

Affordability

2/5

Customer Satisfaction

3/5

Financial Stability

4/5

Online Quote Process

Geek Quick Take
Geek Quick Take
  • Most affordable provider with an average rate of $319 per month
  • Solid financial stability rating from AM Best
  • Quick online quote process
More About Thimble

Thimble’s workers' comp insurance is the cheapest in Hawaii at an average of $319 per month. This company also has a solid financial strength rating from AM Best, meaning that it can handle its financial obligations, including payment of claims. For small business owners that want custom coverage, Thimble offers a quick and efficient online quote process. However, compared to other insurers in our study, Thimble receives a higher number of customer complaints.

2
biBERK
Score:91

1.9/5

Affordability

4/5

Customer Satisfaction

5/5

Financial Stability

4/5

Online Quote Process

Geek Quick Take
Geek Quick Take
  • Average monthly premium of $550
  • High customer satisfaction rating
  • Financially stable
  • Quick online quote process
More About biBERK

biBERK has a solid customer satisfaction track record, according to the NAIC, receiving slightly more complaints than average for a company of its size. This insurer also provides prospective customers a hassle-free online quote process that takes under two minutes. Rated A++ (Superior) by AM Best, biBERK has a strong financial background and is able to meet its ongoing financial obligations to policyholders. With an average rate of $550 per month, this provider is relatively expensive, but it's a good option for small businesses looking for a balance of good service and cost.

3
Next
Score:87

Cheapest Workers’ Compensation Insurance in Hawaii

Thimble offers the cheapest workers' compensation in Hawaii at an average of $319 per month. This insurer is the cheapest provider for businesses with 20 employees and $1,250,000 in annual payroll costs. Keep in mind that employee count and payroll have a significant impact on insurance costs, so rates may vary.

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MoneyGeek Top Pick
Thimble

Thimble is Moneygeek’s top pick for small business owners looking for affordable workers' comp in Hawaii. With an average premium of $319 per month, Thimble offers the cheapest rates for businesses with 20 employees. This company also has a high financial strength rating from AM Best, meaning that it is consistently able to handle its financial obligations.

Getting an online quote from Thimble is a quick, hassle-free process that takes a couple of minutes. However, it is worth noting that this insurer receives more complaints than average for a company of its size, so customer service may not be lacking compared to other insurers in our analysis.

MoneyGeek ranked insurers based on average monthly cost to find the cheapest. However, rates for your small business may vary depending on other factors.

The Hawaii insurance companies we evaluated are shown in the table below along with their monthly and annual rates for businesses with 20 employees in the table below. Companies are ranked by monthly cost.

Thimble$319$3,709
biBERK$550$5,821
Next$598$7,180

Best Workers’ Compensation Insurance for Micro Businesses in Hawaii

Thimble offers the best workers' comp insurance in Hawaii for businesses with five employees. It has an average monthly cost of $120. This rate is based on an annual payroll amount of $312,500.

A business with an employee count of between one and nine is considered a micro business. Employee count is one of the factors that impact workers' compensation costs, but payroll tends to be more significant in determining premiums.

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MoneyGeek Top Pick
Thimble

With an average rate of $120 per month, Thimble offers the cheapest rates for businesses with five employees out of the insurers we evaluated in Hawaii. The company is also financially stable, so it can handle its obligations to policyholders, such as paying out claims. In addition, Thimble has a quick online quote process — it takes less than two minutes to get a quote for your business. However, the insurer has a high complaint index based on NAIC data, meaning that it could do better in the area of customer service.

Best Workers’ Compensation Insurance for Midsize Businesses in Hawaii

MoneyGeek found that Thimble is the best workers' comp provider in Hawaii for businesses with 100 employees. This insurer offers the cheapest rates at an average of $1,558 per month. This rate is also based on an annual payroll amount of $6,250,000.

Rates will vary based on your business's employee count and annual payroll costs, with the latter generally having more of an impact on premiums.

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MoneyGeek Top Pick
Thimble

Thimble ranked as the best insurer for workers' compensation for midsize businesses in Hawaii, with an average rate of $1,558 per month. Compared to other insurers in our analysis, Thimble stands out for affordability — its rates are the cheapest in the state — and financial stability. However, with a relatively low complaint score, Thimble’s customer service track record falls short compared to other companies in our analysis.

How Much Is Workers’ Compensation Insurance in Hawaii?

The average cost of workers' compensation insurance in Hawaii for businesses with 20 employees is $489 per month. Compared to the average national cost of $168 per month, rates in Hawaii are significantly more expensive.

For this analysis, Moneygeek used a policy with the following limits:

  • $1 million total policy limit
  • $1 million per accident limit
  • $1 million per employee limit

The total policy limit refers to the maximum amount the insurer will pay in a given policy year, while the per-accident limit is the maximum amount the company will pay for a single accident. The employee limit is the maximum amount payable per employee. Any lost wages or medical bills exceeding the set limits will not be covered by the workers' comp policy and must be paid by the business.

Workers' compensation insurance premiums vary depending on employee count and annual payroll cost. MoneyGeek compiled the average cost of workers' compensation insurance in Hawaii for five, 20 and 100 employees in the table below.

How was this cost calculated?

5$147$1,644
20$489$5,570
100$1,875$22,435

Factors That Impact Workers’ Compensation Costs in Hawaii

Factors like employee count, payroll costs and more impact how much each business pays for workers' compensation insurance.

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    Payroll costs

    Businesses with high payroll costs tend to pay a higher premium for workers' comp insurance compared to those with low payroll expenses. Insurers typically charge a fixed rate — called a premium index rate — that is set at the state level and based on industry for every $100 of payroll. Hawaii had an average premium index rate of $2.27 per $100 of payroll in 2022, the second-highest rate nationally.

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    Number of employees

    Workers' compensation insurance costs tend to be higher for businesses with more employees since they face a higher risk of employee illnesses or injuries compared to businesses with few employees.

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    Employee class code

    Employee class code is based on the nature of work performed by employees, such as construction or accounting. This class code determines the rate charged for every $100 of payroll. The more risky the nature of the work, the higher the cost of workers' comp insurance will be. For instance, rates for industries like construction, where the risk of injury is high, will typically be more costly.

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    Previous claims

    Companies with a history of claims will generally pay higher rates for workers' comp insurance since they are considered higher risk.

    Recent data from the U.S. Bureau of Labor Statistics (BLS) indicate that there were 11,000 nonfatal workplace illnesses and injuries recorded at private businesses in Hawaii in 2021. Nationally, there were more than 2.6 million nonfatal private-industry workplace injuries and illnesses in 2021.

Do You Need Workers’ Compensation Insurance in Hawaii?

All businesses in Hawaii with at least one employee are required by law to carry workers' compensation insurance. In Hawaii, both full-time and part-time employees are eligible for workers' compensation benefits. Certain types of workers are exempt from mandatory workers' compensation coverage, including unpaid workers for a religious or nonprofit organization, domestic workers who earn less than $225 per quarter and fifty-percent stockholders. However, employers may cover the excluded employees if they wish.

Employers can purchase workers' comp from private insurers or they can self-insure. However, under Hawaii labor laws, the employer is prohibited from requiring the employee to contribute to the premiums. Employers who choose to self-insure pay statutory benefits directly to the injured employee. To qualify for self-insurance, employers must provide proof of financial solvency.

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WORKERS’ COMP PENALTIES IN HAWAII

In Hawaii, employers that fail to provide workers' compensation insurance as required by law will have to pay $100 for each employee for every day of non-coverage.

What Does Workers’ Compensation Insurance Cover in Hawaii?

Workers' compensation insurance in Hawaii covers the cost of medical expenses, lost wages and potential lawsuits arising from work-related injuries or illnesses. Benefits also include permanent disability benefits in the event that the employee becomes permanently disabled. Workers' comp will also cover the cost of any potential legal suits if the injured employee sues the business. An employer purchases this coverage to protect themselves financially in case their employees suffer work-related injuries or illness — the employer is the policyholder.

Workers’ Compensation Insurance Resources for Employees in Hawaii

The Department of Labor and Industrial Relations' Disability Compensation Division oversees workers’ compensation in Hawaii. If you are injured at your workplace, report to your immediate supervisor or employer. The employer will then file an "Employer's Report of Industrial Injury/Illness'' (WC-1) with their insurance provider. When you get treatment, notify your medical provider that it is a work-related injury so that the medical reports and bills can be sent to your employer's insurance carrier.

If your employer fails to file the report, you can contact the nearest Disability Compensation Division office and file an "Employee's Claim for Workers' Compensation Benefits" (WC-5).

Frequently Asked Questions About Workers’ Compensation Insurance in Hawaii

MoneyGeek answered commonly asked questions to help you learn more about workers' comp insurance in Hawaii.

Which company has the best workers’ compensation insurance in Hawaii?

Which company has the cheapest workers’ compensation insurance in Hawaii?

Does Hawaii require businesses to have workers’ compensation insurance?

How much does workers’ compensation insurance cost in Hawaii?

About Melissa Wylie

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Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.

Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.

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