Sources reviewed October 27, 2026 · Confirm current rules with the agency
When coverage is required
Hawaii generally requires workers' comp as soon as you have one employee. That includes permanent, temporary, full-time, and part-time workers, with a few exceptions set by law. You must pay for the coverage yourself. You cannot take any of the cost out of workers' pay. A short job is not an automatic exception.
Owners, contractors, and exceptions
Check Hawaii's workers' comp law for the exact worker and business setup before you leave anyone off the policy. Do not assume working owners or people you call contractors are excluded. Check the legal definition and any forms you must file to opt out. Ask your agent to write down the reason for each exclusion, and check again when someone's job changes.
If an employee is injured
Workers should tell you about an injury right away. If the injury needs treatment beyond first aid or causes time off work, file form WC-1 with the Disability Compensation Division within seven working days of learning about it. Give the worker the required information brochure quickly. The state says within three working days. Also give them a copy of your report. If you do not report, the worker can start a claim with the Division directly.
Operating without coverage
Hawaii's Disability Compensation Division says an employer without coverage faces a penalty of at least $500, or $100 per employee for each day without coverage. You also still owe the injured worker's benefits yourself. Post the required notice about workers' rights, and give an injured worker the Highlights brochure within three working days of learning about the injury.
How to arrange coverage
Buy a policy from a licensed insurer, or apply to self-insure if your business is financially strong enough. Get the required workplace poster and the current worker brochure from your insurer or the Division. Choose who will file the WC-1 report and send wage details later, so a claim does not stall when your usual payroll person is out.
Benefits and return-to-work planning
A work injury can lead to medical care, time off work, a lasting disability, or benefits for family members if a worker dies. Who qualifies, waiting periods, how wages are figured, and benefit limits all depend on state law and the facts of the claim. Ask your insurer which benefits it is looking at and what records it needs. Go by the doctor's work limits, not your own guess about what the worker can do. If you can offer lighter work, describe the duties and hours clearly and plan it with the doctor and your insurer.
Preparing an accurate cost estimate
Gather payroll by job and location, a description of each type of work, details on working owners, subcontractor records, and your past claims. Ask the insurer to confirm your job classes, how the rate is figured, any experience modifier, the minimum premium, fees, and audit terms. This site's calculator uses a base rate that you enter. It does not give a state-approved rate or a real quote. Compare offers using the same numbers, and track staff and work changes during the year so the final audit is easier.
Forms, posters, and notices
These links go straight to Hawaii’s official forms. Your insurer can often send a poster with your policy details already filled in.
- Form WC-1, Employer's Report of Industrial Injury
File with the Division within 7 working days when the injury causes a day off or needs more than first aid. Give the worker a copy.
- Employer duties, including the posting rule
Post a statement of benefit rights, and give an injured worker the Highlights brochure within 3 working days.
Weekly benefit limits
These limits cap the wage replacement checks an injured worker can get. Medical care is paid separately. Limits change every year, so check the source for the latest figures.
- Maximum
- $1,240 a week
- Applies to
- 2026
Check a contractor’s coverage
The agency does not offer a public coverage search we could confirm. Ask the contractor for a certificate of insurance, then call the insurer listed on it to confirm the policy is active and covers this state.
Owner exemptions and elections
Hawaii leaves out some stockholders who own 25% and all who own 50% of a corporation. An employer can choose to cover people the law leaves out. Ask the Disability Compensation Division how to make that choice.
Frequently asked questions
Is workers' comp required in Hawaii?
Yes. Hawaii requires coverage for one or more employees, whether full-time, part-time, permanent, or temporary.
Do business owners need workers' comp in Hawaii?
Review the statutory exceptions for your specific owners and workers with your insurer. People called contractors are not automatically excluded.
How long does an employee have to report a work injury in Hawaii?
Employees should report injuries right away. The employer files the WC-1 report within seven working days and gives the worker the information brochure within three working days.
What happens if a Hawaii business doesn't have workers' comp?
The penalty for failing to insure is at least $500, or $100 per employee for each day without coverage, and the employer remains responsible for benefits.
How do I get workers' comp insurance in Hawaii?
Buy from a licensed insurer or apply to self-insure. Premiums cannot be deducted from employee pay.
How much does workers' comp cost in Hawaii?
Cost depends mostly on your job class codes, the payroll in each class, your experience modifier, and the insurer's rates and minimum premium. Ask a licensed insurer or agent for the base rate for your class code in Hawaii, then use this site's calculator for a rough estimate. Your final premium is set at the yearly audit.
Your next steps
Official sources & further reading
Hawaii DCD: workers compensation overviewHawaii DCD: reporting FAQsHawaii DCD: benefit highlightsThis summary is for learning, not legal advice. Exceptions and changes may apply. If anything here differs from the official agency or the law, they are what count.