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Hawaii Cybersecurity, Privacy & Data Security Laws

June 13, 2025

Hawaii Cybersecurity, Privacy & Data Security Laws

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Hawaii Cybersecurity & Privacy Laws: A Guide for SMBs & Licensees

Navigate the data security and privacy landscape in Hawaii. TEKRiSQ helps Small and Medium Businesses and Insurance Licensees understand their compliance obligations to protect data and avoid penalties.

Explore Hawaii Laws

Understanding Data Protection in the Aloha State

Hawaii has enacted important legislation to safeguard personal information, ensure data security, and regulate privacy, particularly through its data breach notification requirements and a dedicated Insurance Data Security Law. While a comprehensive consumer privacy law (like the Hawaii Consumer Data Protection Act) has been proposed, businesses must currently focus on existing mandates.

For Small and Medium Businesses (SMBs) and entities holding specific licenses (like insurance companies) operating in or serving Hawaii residents, adherence to these laws is crucial. Non-compliance can lead to significant financial repercussions, legal challenges, and damage to your business’s reputation.

This guide provides a clear overview of Hawaii’s key cybersecurity, data security, and privacy laws, summarizing your responsibilities and explaining why proactive compliance is essential for protecting your data and ensuring business continuity.

Hawaii state map with digital security overlay

Hawaii Data Breach Notification Law (HRS § 487N-2)

Illustration of a broken lock with data flowing out, representing a data breach

What is This Law?

Hawaii Revised Statutes (HRS) § 487N-2 requires any business or government agency that owns, licenses, maintains, or possesses personal information of Hawaii residents to provide notice in the event of a security breach. This applies to both computerized and paper records.

Key SMB Responsibilities:

  • Prompt Notification: Provide notice “without unreasonable delay” after discovery of a breach, consistent with law enforcement needs and measures to determine scope and restore system integrity.
  • Covered Personal Information: Includes first name or initial and last name combined with Social Security number, driver’s license/Hawaii ID number, or financial account/credit/debit card number with access code. Also covers unencrypted or unredacted records where illegal use is likely and creates a risk of harm.
  • Notification Methods: Written notice, electronic mail (with consent), or telephonic notice (direct contact). Substitute notice is allowed if cost exceeds $100,000, affected individuals exceed 200,000, or insufficient contact info.
  • Office of Consumer Protection (OCP) Notification: If a breach affects more than 1,000 Hawaii residents, you must notify the State of Hawaii’s Office of Consumer Protection in writing, without unreasonable delay.
  • Consumer Reporting Agency Notification: If more than 1,000 residents are affected, you must also notify all nationwide consumer reporting agencies.
  • Third-Party Data Handlers: If you maintain data owned by another entity, you must notify the owner/licensor immediately upon discovery of a breach.

Why it’s Important:

This law is crucial for protecting Hawaii residents from identity theft and fraud by enabling them to take timely action. For SMBs, compliance is vital for managing crisis communication, maintaining transparency, and avoiding significant civil penalties (up to $2,500 per violation) and civil actions for actual damages.

Read the full Hawaii Data Breach Notification Law (HRS § 487N-2) →

Hawaii Office of Consumer Protection: Security Breach Notices →

Hawaii Insurance Data Security Law (Act 112, SLH 2021)

What is This Law?

Hawaii’s Act 112, signed into law in 2021, adopts the National Association of Insurance Commissioners’ (NAIC) Insurance Data Security Model Law. This law establishes exclusive state standards for data security applicable to Hawaii insurance licensees, aiming to strengthen existing data privacy and consumer breach notification obligations.

Key Licensee Responsibilities:

  • Information Security Program (ISP): Develop, implement, and maintain a comprehensive written ISP based on your risk assessment, with administrative, technical, and physical safeguards for nonpublic information.
  • Risk Assessment: Conduct ongoing assessments to identify reasonably foreseeable internal or external threats to nonpublic information and information systems.
  • Access Controls & Encryption: Implement controls like multi-factor authentication (MFA) and encrypt nonpublic information during transmission and at rest.
  • Regular Testing & Monitoring: Continuously test and monitor systems and procedures to detect attacks and intrusions.
  • Incident Response Plan (IRP): Establish a written IRP to promptly respond to and recover from cybersecurity events that compromise nonpublic information.
  • Cybersecurity Awareness Training: Provide personnel with training that is updated as necessary to reflect identified risks.
  • Third-Party Service Provider Oversight: Exercise due diligence and require third parties to implement appropriate security measures.
  • Cybersecurity Event Notification: Notify the Hawaii Insurance Commissioner as promptly as possible, but no later than 3 business days from a determination that a cybersecurity event impacting 250 or more consumers has occurred.

Why it’s Important:

This law is vital for protecting the highly sensitive financial and health information handled by insurance entities. Compliance builds trust with policyholders, mitigates the severe financial and reputational damage of data breaches, and ensures regulatory alignment with national standards. It’s a proactive measure to secure a critical industry.

Read Hawaii Act 112 (Insurance Data Security Law) →

Hawaii DCCA: Insurance Data Security Law Resources →

Illustration of insurance documents with a privacy lock and shield, set against a Hawaiian backdrop

Why Hawaii Compliance Matters for All SMBs

Beyond specific industry regulations, a strong compliance posture is essential for every Hawaii SMB.

Avoid Costly Penalties

Non-compliance with state laws can lead to significant fines and legal fees that can cripple a small business.

Affordable SMB Cybersecurity Solutions →

Build & Maintain Customer Trust

Consumers are increasingly aware of their data privacy rights. Demonstrating robust compliance builds trust and enhances your brand’s reputation.

Understanding Digital Trust →

Protect Against Cyber Threats

Compliance often mandates the implementation of strong cybersecurity measures, directly protecting your business from data breaches, ransomware, and other attacks.

Enhance Your Security Posture →

Ensure Business Continuity

Proactive compliance and security measures significantly reduce the likelihood and impact of disruptive security incidents, ensuring your operations continue smoothly.

Secure Your Data →

Competitive Advantage

Being recognized as a secure and compliant business can differentiate you from competitors and attract more clients, especially in sensitive industries.

Learn about Data Governance →

Streamline Operations

Implementing well-defined security and privacy practices leads to more organized and efficient data handling.

Develop Your IRP →

TEKRiSQ Solutions for Hawaii Compliance

TEKRiSQ offers comprehensive services to help your Hawaii SMB or licensed entity achieve and maintain compliance with state cybersecurity and privacy laws.

Cyber Risk Assessments

Identify vulnerabilities and compliance gaps specific to Hawaii’s regulations.

Explore Assessments →

Data Governance & Privacy

Implement frameworks for data handling, aligning with Hawaii privacy mandates.

Learn about Data Governance →

Incident Response Planning (IRP)

Develop robust plans to meet Hawaii data breach notification requirements.

Get Your IRP →

Employee Cybersecurity Training

Educate your team on their role in protecting data and complying with state laws.

Explore Training →

Managed Security Services

Ongoing support to continuously monitor and improve your security posture for sustained compliance.

For Consulting Firms →

Endpoint Protection (EDR)

Advanced threat detection and response for your devices, a key component of robust security.

Discover EDR →

Hawaii State Contacts & Resources

For official information and assistance regarding Hawaii’s data privacy, security, and insurance laws, you can contact:

Hawaii Office of Consumer Protection (OCP)

General Inquiries:

Phone: (808) 586-2653

OCP: Security Breach Notices →

Hawaii Department of Commerce and Consumer Affairs (DCCA) – Insurance Division

General Inquiries:

Phone: (808) 586-2790

DCCA Insurance Division: Contact →

Ready to Ensure Your Hawaii Compliance?

Don’t let complex regulations be a barrier. Partner with TEKRiSQ for expert guidance and practical solutions.

Get a Free Consultation