To get workers compensation in Hawaii, you buy a policy from any private insurer licensed to write it in the state, because Hawaii has no government fund and lets carriers compete for your business. If you are turned down in the regular market, you are not stuck: HEMIC, a policyholder-owned private mutual, is Hawaii's insurer of last resort and will cover employers who cannot get a policy elsewhere. Coverage needs to be in place before your first employee starts work.
Who this is for: Hawaii owners buying workers comp for the first time, or owners who have been declined and need a way to get covered.
The short version
- You buy from any private insurer licensed in Hawaii; there is no state fund to buy from.
- If no carrier will take you, HEMIC serves as Hawaii's insurer of last resort.
- Coverage must be in force before your first employee starts, not after.
- You will need basic details: your payroll, the kind of work, and your headcount.
- A broker can shop several carriers at once and place hard-to-cover work.
The steps to get covered
Getting a policy is straightforward once you have your numbers ready. The main information a carrier needs is your estimated payroll, the kind of work your team does, your employee count, and any past claims. With that, a broker can shop several licensed carriers and bring back options. If your work is high-risk or you have had claims and carriers decline you, the application moves to HEMIC as the insurer of last resort so you still end up covered.
| Step | What happens |
|---|---|
| 1. Gather your details | Estimated payroll, kind of work, employee count, and any claims history |
| 2. Shop licensed carriers | A broker compares several private insurers writing your kind of work in Hawaii |
| 3. Bind before the start date | Coverage is put in force before your first employee begins work |
| 4. If declined, use the backstop | HEMIC covers employers the regular market will not take |
What to avoid
Be careful with a so-called ghost policy, a bare workers comp policy that covers an owner with no employees just to satisfy a certificate request. It can be a legitimate way to prove status to a general contractor, but it does not cover actual employees, so if you have staff a ghost policy leaves them and you exposed. If you hire workers, you need real coverage, not a certificate that only looks like coverage. We make sure the policy you buy matches who actually works for you.
A Kaneohe example
Illustrative, not a quote. A Kaneohe tree-trimming company with a rough claims record applies for coverage and gets declined by two carriers because the work is high-risk. Rather than operate uninsured and risk the fines, the owner is placed with HEMIC as the insurer of last resort, so the crew is covered before the next job. Once the company builds a cleaner claims record, we shop it back into the regular market at a better price. See our workers comp for trades and field crews page.
Real questions Hawaii owners ask
How do I get workers comp in Hawaii?
You buy a policy from any private insurer licensed in Hawaii. Gather your payroll, kind of work, and headcount, and a broker can shop several carriers and put coverage in force before your first employee starts.
What if I get turned down by carriers?
You still have a path. HEMIC is Hawaii's insurer of last resort and covers employers the regular market will not take, so you can get covered even after being declined.
Is there a state fund I buy from in Hawaii?
No government fund. Hawaii uses a private, competitive market, so you buy from a licensed private insurer, with HEMIC serving as the backstop if no one else will write you.
What information do I need to get a quote?
Your estimated payroll, the kind of work your team does, your employee count, and any past claims. That is enough for a broker to shop carriers and bring back options.
When does coverage need to start?
Before your first employee begins work. Hawaii requires the policy to be in force from day one, so line it up as part of hiring rather than after.
Do I need real coverage, or just proof for the paperwork? (the "ghost policy" question)
It is a bare policy covering an owner with no employees, used to satisfy a certificate request. It is fine to prove status, but it does not cover staff, so it is wrong if you have employees.
Can a broker help if my work is high-risk?
Yes. A broker can shop carriers that write risky trades and, if everyone declines, place you with HEMIC, so high-risk work still gets covered.
Why Hawaii owners choose Morrow
- We shop the right market for you. Hawaii has no state-run fund, so private insurers compete for your business and we can shop your rate freely. If no insurer will take you, there is a guaranteed backstop: HEMIC, a member-owned insurer that has to cover businesses others turn down.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Hawaii guides
Every Hawaii business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Hawaii (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What is a ghost workers comp policy?
- Hiring your first employee: what changes
- Hawaii HVAC workers comp
This guide is general information, not legal advice. Hawaii rules and penalty amounts can change, so verify current requirements with the Hawaii Department of Labor and Industrial Relations, Disability Compensation Division or a licensed advisor before you rely on them. Last updated: July 2026.