Workers compensation in Hawaii is priced mainly on your payroll and the kind of work your team does, so there is no single sticker price. As a rough guide, a low-risk office might pay a few hundred dollars per employee a year, while high-risk trades like roofing pay much more, and your own claims history nudges it up or down. Hawaii base rates have been trending down, but each carrier still adds its own markup, so quotes vary.
Who this is for: Hawaii owners trying to budget for workers comp or understand why two quotes for the same business can differ.
The short version
- Price is driven by payroll and the kind of work, so risky trades cost more per dollar of wages.
- Hawaii base rates dropped about 4.4 percent for policies starting January 1, 2026, on an advisory basis.
- Base rates are only a starting point; each carrier adds its own markup, so quotes differ.
- Your past claims raise or lower your price through a score built from that history.
- At the end of the year your bill is adjusted to match the wages you actually paid, so you may owe a little more or get some back.
What drives your Hawaii price
Two businesses with the same payroll can pay very different premiums, and it comes down to a few factors. The biggest is the category your work falls into for pricing, sometimes called the class code, because a roofer and a bookkeeper are not the same risk. The next is total payroll, since premium is figured per hundred dollars of wages. After that comes your claims record, which feeds a score that raises or lowers your rate over time, and the carrier you land with, since each one sets its own markup over the state base rates.
| Factor | How it moves your price |
|---|---|
| Kind of work (the pricing category) | Low-risk office work costs a little; high-risk trades cost a lot more per dollar of payroll |
| Total payroll | Premium is figured per hundred dollars of wages, so more payroll means more premium |
| Claims history | A record of few claims lowers your rate; past claims raise it |
| Carrier markup | Each carrier adds its own margin over the state base rates |
Illustrative ranges for Hawaii
These are illustrative annual ranges for small Hawaii employers, not quotes. Your real number depends on payroll, work type, and claims history.
| Business type | Illustrative annual workers comp |
|---|---|
| Office or professional services | 600 to 2,400 dollars |
| Retail store | 1,200 to 4,800 dollars |
| Restaurant or cafe | 2,600 to 10,000 dollars |
| Cleaning or janitorial | 3,000 to 11,000 dollars |
| Roofing or high-risk trade | 12,000 dollars and up |
How to keep the cost down
The most common way Hawaii owners overpay is being placed in the wrong pricing category, which can inflate the bill for years. Getting your payroll classified correctly is the first fix. From there, a clean claims record lowers the score that drives your rate, and comparing carriers matters because each sets its own markup over the same state base rates. We review your classifications, shop multiple carriers, and check the score each year for errors.
A Honolulu example
Illustrative, not a quote. A Honolulu accounting firm with four office staff and a 260,000 dollar payroll gets two quotes that differ by hundreds of dollars, even though the work is the same low-risk office category. The gap is carrier markup over the same state base rates, plus a small credit on one quote for a clean claims record. We place the firm with the better-priced carrier and confirm the payroll is rated as office work rather than something costlier. See our workers comp for accountants and bookkeepers page.
Real questions Hawaii owners ask
How much does workers comp cost in Hawaii?
It depends on payroll and the kind of work. A low-risk office might pay a few hundred dollars per employee a year, while high-risk trades like roofing pay much more, and your claims history adjusts it.
Why did two Hawaii quotes come back so different?
Because each carrier adds its own markup over the same state base rates, and small credits for a clean claims record vary. Same business, different margin, different price.
Did Hawaii workers comp rates go down?
On an advisory basis, yes. The base rates carriers build on were cut about 4.4 percent for policies starting January 1, 2026, though each carrier still applies its own markup.
What makes my workers comp price go up or down?
Mainly the kind of work, your total payroll, your claims history, and the carrier's markup. Risky work and past claims push it up; clean records push it down.
How is the premium actually calculated?
It is figured per hundred dollars of payroll for the pricing category your work falls into, then adjusted by your claims score and the carrier's markup, and trued up at audit.
Can I lower my workers comp cost?
Yes. Make sure your payroll is in the right pricing category, keep your claims record clean, and compare carriers, since each sets its own markup over the same base rates.
What is an audit and will I owe more?
An audit checks the wages you actually paid against your estimate. If you paid more than estimated you may owe more; if less, you can get money back.
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 do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Glossary: workers comp class code
- What is an experience mod, and how do I lower it?
- Hawaii accountant 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.