Hawaii Senate Bill SCR16

Hawaii 2024 Regular Session

• Introduced: 2/29/24
• Refer: 3/1/24

Caption

Requesting The Hawaii Property Insurance Association To Expand Coverage To Commercial Properties.

Impact

The expansion of policy coverage to commercial properties would provide business owners with necessary insurance options, ensuring that they are protected against unforeseen events. Currently, the Hawaii Property Insurance Association only offers property insurance to dwellings, homeowners, renters, and unit-owners. The lack of commercial insurance has been a notable gap in the market, especially for businesses that are unable to secure private market coverage. This bill seeks to remedy that gap by requesting the association to include commercial properties in its coverage offerings.

Summary

Senate Concurrent Resolution 16 (SCR16) encourages the Hawaii Property Insurance Association to broaden its policies to include commercial properties. The bill highlights the current limitation in the insurance offerings where commercial properties cannot be insured due to the absence of policies targeted specifically at them. This restriction leaves business owners struggling to find adequate coverage, particularly in a state where natural disasters, such as volcanic activity, pose significant risks.

Contention

While the bill generally receives support due to its potential benefits to local businesses, there may be contention surrounding the financial viability and operational capacity of the Hawaii Property Insurance Association to take on additional risk factors associated with commercial properties. Stakeholders may question whether the association has the necessary funding and infrastructure to provide these new policy options while maintaining adequate coverage levels for existing clients. As the discussion progresses, it is likely that the implications of this expanded coverage will be a focal point for debate among legislators and insurance professionals.