In Hawaii, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and Hawaii's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in Hawaii, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in Hawaii?
Mandatory for any employer with one or more employees, full- or part-time.
Can owners and officers be included or excluded in Hawaii?
| Sole proprietor | Excluded; may elect in. |
|---|---|
| Partners | Excluded (an LLP partner is excluded only with a 50%+ interest); may elect in. |
| LLC members | A member with a 50%+ distributional interest is excluded (and may elect in); a member under 50% is included. |
| Corporate officers | Generally included; excluded only if an unpaid officer of a corporation with no employees owning 25%+, or any individual owning 50%+. Excluded owners may elect in. |
How to make the election in Hawaii
- Our form: CWCO General Inclusion / Exclusion Form — records the election where Hawaii does not publish its own form.
- Official source: Hawaii DLIR — Disability Compensation Division
Payroll counted for an included owner in Hawaii
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 1/1/2026), set by NCCI.
| Included owner/officer minimum | $1,200 per week |
|---|---|
| Included owner/officer maximum | $4,800 per week |
Included executive officer $1,200–$4,800/week; covered partners, sole proprietors, and LLC members at $62,000/year. NCCI-set, changes annually.
These amounts update periodically; we confirm the current figure for your policy.
Hawaii's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through Hawaii Employers' Mutual Insurance Company (HEMIC) — competitive fund and insurer of last resort (the statutory assigned-risk pool ended in 1996). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
Hawaii business insurance · Workers' compensation coverage · Hawaii Department of Labor and Industrial Relations, Disability Compensation Division.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in Hawaii?
It depends on your entity and role. Excluded; may elect in. Generally included; excluded only if an unpaid officer of a corporation with no employees owning 25%+, or any individual owning 50%+. Excluded owners may elect in. Employees are always covered.
How do I include or exclude an owner from workers' comp in Hawaii?
The right form, portal, or endorsement depends on your entity type. Hawaii records the election on the policy with the carrier; our general inclusion/exclusion form documents it.
What payroll is used for an included owner in Hawaii?
Included executive officer $1,200–$4,800/week; covered partners, sole proprietors, and LLC members at $62,000/year. NCCI-set, changes annually. We confirm the current figure for your policy.
Can Cory Washington & Co. handle my Hawaii workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.