Restaurant Insurance in Hawaii
The policies a Hawaii restaurant, bar, food truck, or catering operation needs — what the state requires, what's strongly advised, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
In Hawaii, a restaurant's core program is general liability, a property or business-owner's policy (BOP), and commercial auto for any delivery. Workers' compensation is mandatory once you hire staff, and dram-shop law exposes any alcohol-serving business, so liquor liability is strongly advised. This hub compares Hawaii's workers' comp and liquor-liability rules and cost alongside the coverages every restaurant and bar should carry.
- Workers’ comp
- Required once you hire staff
- Liquor liability
- Dram-shop law applies — strongly advised
- Dram-shop law
- Yes
- Suggested liquor limits
- $1M/$2M
Workers’ compensation in Hawaii
Yes. Hawaii mandates workers' compensation for any employer with one or more employees, full-time or part-time, permanent or temporary, so every restaurant with staff must provide coverage before work begins. Additionally, Hawaii uniquely requires separate Temporary Disability Insurance and Prepaid Health Care coverage for employees working twenty-plus hours weekly—three distinct mandates no other state imposes.
Full Hawaii workers’ comp guide — thresholds, exemptions, and rates →
Liquor liability & dram-shop law in Hawaii
Hawaii recognizes dram-shop liability through common law, not a comprehensive statute. In Ono v. Applegate (1980), the Hawaii Supreme Court held that a licensee which serves a person who is, or should be known to be, intoxicated may be liable in negligence to third parties injured by that patron. Liquor is licensed at the county level.
Full Hawaii liquor-liability guide — the statute, limits, and cost →
Coverages every Hawaii restaurant should weigh
- General liability
Third-party slip-and-fall and property-damage claims — the foundation policy.
- Business owner’s policy (BOP)
Bundles general liability with property coverage for your building, equipment, and contents.
- Commercial property
Kitchen equipment, tenant improvements, signage, and inventory.
- Commercial & hired/non-owned auto
Delivery, catering runs, and errands in owned or employee vehicles.
- Employment practices (EPLI)
Harassment, discrimination, and wrongful-termination claims from staff.
- Umbrella
Extra limits above your liquor, auto, and general liability policies.
Hawaii regulators
Talk to an agent who insures food & beverage every day
A licensed commercial-lines agent who specializes in restaurants and bars will review your coverage, close the gaps that catch owners, and show you what a program actually costs — before anything is bound.