What is the minimum workers compensation insurance coverage required for Hawaii contractors with employees?
Correct Answer
B) No minimum - statutory benefits only
Hawaii workers compensation provides statutory benefits without a specific minimum coverage amount per occurrence.
Why This Is the Correct Answer
Hawaii's workers compensation system is based on statutory benefits, meaning the law itself defines the benefits owed to injured workers. There is no separately mandated minimum dollar amount per occurrence; instead, the insurer must cover whatever statutory benefits the injured worker is entitled to under Hawaii law. Contractors must carry workers compensation insurance, but the 'minimum' is defined by the statutory schedule of benefits, not a per-occurrence dollar limit.
Why the Other Options Are Wrong
Option A: $500,000 per occurrence
$500,000 per occurrence is a figure associated with general liability insurance thresholds, not Hawaii workers compensation requirements. Workers comp uses statutory benefit schedules, not per-occurrence caps.
Option C: $100,000 per occurrence
$100,000 per occurrence is not the correct framework for Hawaii workers comp. This amount might appear in other insurance contexts but does not reflect how statutory workers compensation coverage is structured.
Option D: $1,000,000 per occurrence
$1,000,000 per occurrence is a typical general liability or umbrella policy limit and does not represent the workers compensation requirement structure in Hawaii.
Memory Technique
Think 'statutory = no cap' — Hawaii workers comp is governed entirely by statute. The benefit amount depends on the injury and wages, not a predetermined ceiling. If the law says pay it, the insurer pays it.
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Under Hawaii's mechanics lien law, a subcontractor must provide preliminary notice within how many days of first furnishing labor or materials?
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