Short answer: Hawaii mandates more employer coverage than most states. Employers must carry workers' compensation. Even an employer with one employee must provide Temporary Disability Insurance (TDI) once an employee becomes eligible. Under the Prepaid Health Care Act, employers must provide health coverage to employees who work at least 20 hours a week for four consecutive weeks and meet a wage threshold. From January 1, 2026, the auto minimum is 40/80/20 plus $10,000 PIP.
This guide is general information for Hawaii employers and business owners. It isn't legal advice. Agency rules change, so confirm with the agencies linked below.
1. Workers' compensation
Details: is workers comp required in Hawaii.
2. Temporary Disability Insurance
Per the Disability Compensation Division, covered employers, including those with a single employee, must provide TDI coverage for eligible employees. Eligibility is based on 14 weeks of Hawaii employment in the prior 52 weeks, each with at least 20 hours paid, and at least $400 in wages.
3. Prepaid Health Care
Per the DCD's Prepaid Health Care FAQ, employers with one or more employees must provide health coverage to employees who work at least 20 hours a week for four consecutive weeks and meet the monthly wage threshold.
4. Business vehicles
Per the Insurance Division, Hawaii's minimum auto liability rose to $40,000/$80,000 bodily injury and $20,000 property damage for policies issued or renewed from January 1, 2026, plus $10,000 PIP. See commercial auto insurance.
State unemployment insurance
Unemployment insurance is the other employer coverage Hawaii makes mandatory. Per the U.S. Department of Labor's Significant Provisions of State UI Laws, January 2026, Hawaii employers are covered as soon as you have any covered employee. The 2026 taxable wage base is $64,500 per employee. Experience-rated employers pay 0.00% to 5.60%, and new employers start at a base rate of 2.40% (higher rates can apply by industry). Register with the state's unemployment tax agency when you hire.
Beyond the mandates
Most other coverage, like general liability, property, professional liability and cyber, comes from contracts, leases and lenders rather than Hawaii law. See small business insurance by industry or home-based business insurance. For-hire interstate carriers also face federal minimums under 49 CFR 387.9, starting at $750,000.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Hawaii.
Frequently asked questions
Do Hawaii employers have to provide health insurance?
Yes, under the Prepaid Health Care Act, for employees working at least 20 hours a week for four consecutive weeks who meet the wage threshold.
Does a Hawaii business with one employee need TDI?
Yes, once the employee is eligible.
What's Hawaii's 2026 auto minimum?
40/80/20 liability plus $10,000 PIP.
Do Hawaii employers have to pay for unemployment insurance?
Yes, once covered. The 2026 taxable wage base is $64,500, and new employers start at 2.40%.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.