Which businesses are typically exempt from carrying workers' compensation insurance in Hawaii?

In Hawaii, sole proprietors without any employees are exempt from carrying workers' compensation insurance. This exemption is based on the fact that workers' compensation insurance is designed to protect employees in the event of a work-related injury or illness. Since sole proprietors do not have employees, they do not need coverage for a workforce they do not possess. By not having employees, the sole proprietor is at a lower risk of potential liability that workers' compensation insurance is meant to address.

The other categories, such as large corporations or non-profit organizations, may include employees who need coverage, and partnerships could have employees as well, which would necessitate the need for workers' compensation insurance. Thus, the exemption for sole proprietors is a specific provision that reflects the unique situation of individuals running their own business without hiring others.