What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Hawaii

When hiring employees in Hawaii, businesses must ensure they have the proper insurance coverage to comply with state regulations and protect both the company and its workforce.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most employers in Hawaii. It provides coverage for medical expenses and lost wages if an employee is injured on the job.

• Required for all private employers with one or more employees.
• Covers workplace injuries and occupational diseases.
• Must be obtained before employees begin work.

Unemployment Insurance

Employers in Hawaii are also required to contribute to the unemployment insurance program, which supports employees who lose their jobs through no fault of their own.

• Employers register with the Hawaii Department of Labor and Industrial Relations (DLIR).
• Regular payroll reporting and tax payments are necessary.

Additional Insurance Considerations

While not legally required, businesses should consider other insurance types to manage risk effectively:

• General liability insurance to protect against third-party claims.
• Health insurance offerings may be required under federal laws depending on business size.
• Disability insurance is not mandatory but can support employee welfare.

Operational Tips

• Verify insurance coverage before onboarding new employees to ensure compliance.
• Maintain accurate recordkeeping of insurance policies and claims.
• Automate payroll and tax reporting to streamline compliance with unemployment insurance requirements.
• Review insurance needs periodically as your workforce grows or changes.

As of 2026, staying updated with Hawaii DLIR guidelines ensures your business meets all insurance obligations when hiring employees.