Hawaii workers' compensation insurance

Certain employees are also exempt from workers’ comp coverage requirements, including:

• Voluntary or unpaid workers for a church, charity, school, or nonprofit organization
• Students working for a school, university, or college club in exchange for room, board, or tuition
• Authorized ministers, priests, or rabbis
• Domestic workers making less than $225 each calendar quarter
• People providing domestic services to public welfare recipients
• Some 25% stockholders
• All 50% stockholders
• Real estate salespersons and brokers compensated totally on the basis of commissions

Employers may decide to voluntarily cover excluded employees, which is a good idea given the potentially high cost of medical bills from a work injury.

Here are several examples of how workers' compensation insurance coverage helps pay expenses for injured workers:

• A barista burns their hand while preparing a hot beverage for a customer. Workers' comp covers their doctor's appointment and pain medication, as well as provides disability benefits to replace part of their lost wages while recovering.
• A retail store employee slips on a wet floor and hits their head. In this instance, workers' compensation would cover their emergency room trip, head MRI, and any following medical expenses during their recovery.
• A nurse trips on a cord in their patient's room and breaks their wrist. Workers' comp covers the cost of the emergency care, surgery, medications, and then two months of physical therapy to help them recover.
• A janitor suffers from respiratory problems after years of using harsh cleaning chemicals. After filing a workers' comp claim, they receive permanent disability payments for their ongoing lung issues.

There are a few ways for Hawaii employers to purchase a workers' compensation insurance policy:

• You can buy a policy from a private insurance company. You could contact each workers' compensation insurance carrier independently to compare their products and rates, but that's where agents and brokers like Insureon come in. As the nation's leading digital insurance agency, Insureon partners with 30+ top-rated insurance carriers to deliver the right coverage for your business. Fill out an easy online application to get started.
• You can apply for self-insurance. This means you’ll pay for their own workers’ comp medical and rehabilitation costs rather than submit them to an insurance carrier.
• You can buy insurance through a state fund. Hawaii offers businesses the option to get workers' comp coverage with the Hawaii Employers’ Mutual Insurance Company (HEMIC) if unable to acquire insurance from a private company.

Here's a breakdown of this equation:

• The classification rate reflects your employees' risk. Each worker has a classification code for the type of work they do. Insurers look up those codes in a database to find the associated rate, which is lower for office workers and higher for carpenters, tree trimmers, and others with a higher rate of injuries. Like most other states, Hawaii relies on the National Council on Compensation Insurance (NCCI) database.
• The experience modification rate (EMR) reflects your business's risk. The average experience modification rate is 1.0, which means a business is similar in risk to others in its profession. Higher EMRs reflect higher risks, such as a history of claims. The EMR only comes into play for annual workers' comp premiums of at least $5,000, so it's not a factor for many small business owners.
• The insurer multiplies these numbers with your payroll divided by 100 to come up with your workers' compensation rate. Workers' compensation audits are typically done each year to ensure your business pays the right premium for this coverage.

If an employee dies as a result of a work-related injury or illness, surviving dependents are eligible to receive death benefits.

In Hawaii, any family member who was financially dependent on the deceased worker can receive cash payments. This includes:

• A spouse living with the injured employee when the injury occurred or who relied on the person financially
• An unmarried child younger than 18 or a married child who relies on the worker financially
• An unmarried child under age 22 who is a full-time student
• An unmarried child regardless of age who is not financially independent

In Hawaii, the amount of a workers’ comp death benefit depends on which family members are applying for benefits. The total benefits paid for all family members can’t exceed two-thirds of the injured worker’s average weekly wages.

Death benefits in Hawaii end when a spouse passes away or gets remarried. When a spouse decides to remarry, the person can apply for a lump sum equal to two years of workers’ compensation benefits.

Hawaii workers’ compensation also provides funds toward payment of funeral costs.