Hawaiʻi is no doubt one of the most beautiful destinations in the world to operate a business. However, owning a business in such a unique location carries certain risks. Natural disasters and other unexpected events can put local business owners in danger of losing their livelihood.
While some risks can’t be prevented, carrying small business insurance in Hawaiʻi can help ensure that your organization financially recovers from any event you may encounter. If you own or operate a small business in Hawaiʻi, having the right combination of policies is a must.
Let’s look at what specialized insurance is recommended for small businesses in Hawaiʻi.
What Types of Insurance Do Hawaiʻi Small Businesses Need?
The right type of insurance for your small business will depend on several factors, such as your industry, location, and company size. As not every small business will need every policy available, it’s important to carefully evaluate your company’s unique risk profile and determine which coverage will best protect your investments.
Some types of insurance to ask your insurance agent about include:
Property Insurance
Commercial property insurance protects rented or owned buildings and equipment used in the operation of the business. This type of policy covers losses from a variety of sources, such as wind, theft, burglary, fire, and lightning.
Specifically for Hawaiʻi
When comparing property insurance products, ensure that the policies you choose cover your specific risks. For example, most small businesses in Hawaiʻi are exposed to the possibility of hurricane damage.
Business hurricane insurance covers damages caused by strong winds that could cause significant damage to businesses, especially those along coastlines. Flood coverage is also a must for Hawaiʻi businesses.
Most general property insurance policies do not include flood damage as a standard, meaning a separate or add-on policy is required to protect against physical losses to your structure or belongings.
When these types of unexpected events occur, business owners must be prepared to shut down temporarily. Business income insurance is available to protect a business that faces lost income due to a slowdown or closure.
This type of coverage may also be referred to as business income loss insurance or business interruption insurance.
Auto Insurance
Commercial auto insurance helps cover bodily injury and property damage claims that may arise if you or an employee are in an automobile accident while driving a company-owned car, truck, or other vehicle for business purposes.
When shopping for auto insurance, it’s important to carefully review the policy to determine if it will provide sufficient coverage for your business. This is particularly important for those unique small businesses that rely vehicles as a mainstay of their business.
Most commercial auto insurance policies include the following types of essential coverage:
- Liability – This protects the policy owner from property damage or bodily injury to third parties caused by the negligent ownership or operation of the vehicle.
- Comprehensive Coverage – This can help policy owners pay for any vehicle damages caused by weather events, animal-related accidents, vandalism, and similar perils.
- No-Fault Coverage – This pays for loss of income, medical expenses, and similar losses if you’re involved in a vehicle accident, regardless of who was at fault.
- Collision Coverage – This pays for damage to the policyholder’s vehicle if it has been damaged in an accident with an object or another vehicle.
Casualty Insurance
Casualty insurance encompasses several types of coverages for businesses that want to protect against liabilities, damages, and the loss of property. Claims associated with casualty insurance often stem from accidents that have occurred on business premises or due to the company’s operations.
General liability is a common form of casualty insurance that provides coverage for property damage, personal injury, bodily injury claims. It also protects business owners from lawsuits due to product defects, slip and fall accidents, and even advertising.
Casualty insurance also includes other types of policies, such as cyber liability, employment practices, directors & officers, errors & omissions, and workers’ compensation insurance.
Umbrella Insurance
Commercial umbrella insurance provides businesses with an additional layer of liability protection by helping to cover costs that surpass their other liability coverage limits.
Umbrella insurance is not typically offered as a stand-alone policy, but rather, it works in combination with other liability policies, such as general liability insurance, adding an extra financial buffer in high dollar amount damages or claims.
It’s important to understand that umbrella insurance does have its limits. However, policy limits can range from $1 million up to $10 million or more, depending on the needs of your business.
Protect Your Small Business with Coverage from Atlas Insurance
Operating a small business in Hawaiʻi brings both risks and rewards. Fortunately, Atlas Insurance Agency can help you avoid significant losses by helping you build a comprehensive insurance package that includes specialized insurance for your unique small business.
We’ve been here for over 90 years, helping to protect and grow our local community businesses. Contact Atlas at (808) 400-6634 to see how we can assist you.