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If you own a small business in the Aloha State, this information will help you understand Hawaii Commercial Liability insurance and protect your business and your personal assets from legal claims and settlements that can spell financial ruin. Having sufficient general liability insurance is an important part of any small business plan in Hawaii.
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If you own a small business in the Hawaii , this information will help you understand Hawaii Commercial Liability insurance and protect your business and your personal assets from legal claims and settlements that can spell financial ruin. Whether you work in Honolulu, Kapolei, Pearl City, or Kaneohe on Oahu, Lihue in Kauai, Hilo or Kona on the Big Island, Lahaina on Maui or anywhere else in the Aloha State having sufficient commercial liability coverage is an important part of any small business plan in Hawaii.
A small business is defined as any company with fewer than 500 employees. Small business is vital to Hawaii’s economic well-being, accounting for more than nearly 98% of all state employers. Of Hawaii’s 119,182 small businesses in 2008 (the latest data available), 25,478 were small employers, accounting for nearly 56% of the state’s private-sector jobs. Another 93,704 were one-person operations with no employees.
Source: SBA Hawaii Small Business Profile 2011.
Commercial liability insurance (also called business liability insurance and commercial general liability insurance) protects your Hawaii business from financial loss resulting from claims of injury or damage cause to others by you or your employees. A policy typically covers:
Commercial Liability Insurance is not mandatory for businesses operating in Hawaii. Hawaii is a modified comparative negligence no-fault state. A plaintiff must not be more than 50% at fault to collect damages. There are no caps on personal injury awards in Hawaii. The statute of limitations for general personal injury is 2 years for negligent conduct, and 2 years for products liability, libel/slander and wrongful death. Accidents and lawsuits (legitimate and frivolous) do happen in Hawaii. If you own property or other valuable assets you would be wise to invest in sufficient commercial general liability coverage for your Hawaii business to limit your risk exposure.
Each situation is unique, but as a general guideline, the type of Hawaii business you operate or products you manufacture should determine how much Hawaii commercial general liability insurance you need. A good rule of thumb for most small businesses is between $500,000 and $1 million. However, if yours is a high-risk business such as the building trades or has a high volume of interaction with the public such as a restaurant or retail business, you should consider increasing your coverage. Note that if you operate out of your home, your homeowner’s or renter’s insurance has limited coverage for business liability and loss.
Hawaii commercial liability insurance premiums are based on a number of factors including the types of service or products you provide, the number of people you employ, how long you’ve been in business, and your claims history. Coverage is typically capped at a specific dollar amount for your policy period.
Mandatory
Optional
Hawaii Department Commerce and Consumer Affairs/Insurance
This agency is responsible for regulating all insurance policies sold in the state, including commercial liability coverage. Visit their website at hawaii.gov. Write Insurance Division, P.O. Box 3614, Honolulu, HI 96811. On Oahu, call 808-586-2790.
Hawaii Small Business Administration
The SBA is an independent agency of the federal government created to aid, counsel, assist and protect the interests of small business concerns and maintains a District Office in Honolulu. Get the link to the Hawaii SBA at www.sba.gov.
National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. It also offers an online form for filing complaints, reporting suspected insurance fraud and downloading key financial information about insurance carriers at naic.org.
Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at www.iii.org.
E-Insure
Get competitive quotes for commercial liability insurance and all your business insurance needs at www.EINSURANCE.com/business-insurance.
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