In Hawaiʻi, operating a business means the possibility of some unique risks — some you may expect and others are unexpected. In any case, to protect your company from financial losses, it’s important to have the right coverage.
Business insurance safeguards against liabilities including property damage, bodily injury, cyber threats, and claims of negligence.
Let’s look at some ways to find the types of insurance your business needs to keep you, your employees, and your customers protected.
Importance of Business Insurance in Hawaiʻi
As a business owner, you are responsible for your employees and customers. When certain events happen that negatively impact them, there could be financial fallout for your business. Business insurance protects against common risks that could wipe out your assets.
It also shows that your company is professional, which can help you qualify for business loans, secure contracts with clients, and meet eligibility requirements to lease office space. Most importantly, business insurance helps you prepare for future risks.
Assessing Your Business Insurance Needs
While risks are a normal part of operating a business, there are ways to reduce their impact on business success. Start by performing a risk assessment to determine how likely certain risks are and their potential impact on the business.
Consider factors that could affect your level of risk, such as geographical location, historical data, industry trends, and the overall nature of the business. By performing this assessment, you can prioritize risks and focus on threats that have the highest potential impact.
An experienced business insurance agent can provide you with valuable insight into specific risks most common in your industry and recommend the right coverage for your business.
Business Insurance Plans to Protect Your Business
When choosing the right insurance plan, consider factors such as cost deductibles, exclusions, and coverage limits.
In Hawaiʻi, most businesses can benefit from carrying the following types of business insurance:
Auto
Commercial auto insurance covers cars, vans, trucks, and other vehicles used for business purposes. It also covers commercial vehicles, such as box trucks, food trucks, for-hire livery, and tow trucks.
Similar to personal auto insurance, commercial auto insurance provides comprehensive, collision, liability, medical payment, and uninsured motorist coverage. Commercial auto coverage can also help repair or replace your work vehicle.
Some vehicles are not covered by commercial auto insurance, such as customer vehicles, rental vehicles used for work, and personal vehicles.
Property
Commercial property insurance protects a business’s physical assets from theft, vandalism, fire, burst pipes, explosions, storms, and more. Floods and earthquakes are not usually covered under commercial property insurance but can be covered by separate policies or add-ons.
Property insurance policies generally cover everything inside your building, everything just outside of the building, and the building itself. This includes furniture, equipment, computers, inventory, exterior signs, important documents, landscaping, and property stored on the premises that belong to others.
Small Business
Small businesses need insurance that protects them from the costs of business interruptions, property damage, and liabilities. A small business owner’s (BOP) policy provides businesses with general liability and property damage coverage.
General liability insurance protects business owners from common claims, such as third-party bodily injury, reputational harm, product liability claims, and advertising-related injuries. It does not cover liabilities and costs associated with the services that the business provides, such as mistakes made by employees or product recalls.
Casualty
Business casualty insurance protects businesses from the financial impact of injuries, damage, and other incidents that may occur as a result of doing business. There are several important lines of casualty insurance to consider carrying:
- Cyber liability insurance: Protects businesses from data breaches, hacking, and other online events.
- Directors and Officers insurance: Safeguards directors and other senior members of a business from personal losses if they are sued as a result of serving the business.
- Employment practices liability insurance: Shields businesses from claims made by employees who believe their legal rights were violated by their employer.
- Errors and omissions insurance: Protects businesses against liability if a client claims that the company provided inadequate or negligent work.
- Workers’ compensation insurance: Provides compensation to employees who become ill or injured on the job.
Umbrella
Commercial umbrella insurance gives businesses an extra layer of liability protection by covering expenses that extend beyond their regular liability coverage limits. Umbrella insurance can help cover costly claims, such as third-party bodily injury, third-party property damage, product liability, and advertising injury.
Partnering with an agent you can trust will provide just as much protection as the policies you choose. Ask about their claims processes, availability of customer service, and make sure they recognize the risks that are most likely to affect your specific business.
Work With an Experienced Agent at Atlas Insurance
Finding the right coverage to protect your business can be difficult. Atlas Insurance is one of the longest standing businesses in Hawaiʻi. As a local provider, we understand what other local businesses need to protect their company and remain compliant with laws and regulations.
We take a personalized approach to helping our clients choose the right coverage for their particular needs. Let Atlas help you choose the right protection for your business.