Best Hair & Beauty Salon Insurance for 2024

Which type of insurance best protects the salon owner?

At the end of the day, all types of business insurance are made to protect the salon owner from personally assuming financial losses due to accidents, injuries, mistakes, or dishonesty.

The most comprehensive protection offered by a single plan is usually a business owner policy which bundles general liability coverage and commercial property coverage.

That said, there are 4 main types of business insurance a salon owner should have to ensure adequate protection on all fronts.

What type of insurance should a salon owner have?

At a minimum, salon owners should have workers’ comp insurance to cover employee workplace injuries, general liability insurance to cover injuries to customers or their belongings, professional liability insurance to cover mistakes in your work, and some form of property insurance to cover your tools, merchandise, and equipment.

Having multiple coverages in place is key to being prepared for a variety of risks. These four types of insurance cover most of the risks associated with salons.

Keep in mind that having workers’ compensation insurance is a legal requirement for operating a business in most states.

Below we’ve listed the most relevant types of business insurance for salons and beauty shops:

Who needs salon insurance?

Anyone who operates a small business in the beauty industry should have business insurance. In fact, it’s a legal requirement in most states to have workers’ comp.

Even if you are a sole proprietor, you should have insurance in place to protect yourself from lawsuits or unfortunate accidents that could cause massive financial payouts from your little business.

That said, here are some examples of beauty professionals that can benefit from salon business insurance:

• Hairdressers, barbers, & hairstylists
• Makeup artists
• Nail salons & technicians
• Tanning salons
• Cosmetologists & Estheticians
• Massage therapists
• Med spas
• Cosmetics & beauty supply stores
• Tattoo & Permanent makeup artists

If you need help choosing the right coverage, we recommend speaking with an insurance professional.

How much does salon insurance cost?

Based on sales data from our partner Insureon, the average median cost of salon business insurance varies by type of policy as follows:

• General liability policies cost around $70 or less per month
• Business owner policies cost around $35 or less per month
• Professional liability policies costaround $40 per month
• Workers’ comp policies cost around $80 per month

It’s important to note that these are general figures for the industry and are based on quotes made through the Insureon platform.

Factors that influence the cost of business insurance for salons

The cost of salon insurance varies for each unique business based on the following factors:

• The size of your business
• The type of business
• Your location
• Your annual revenue
• The number of employees you have
• Your claims history
• The type of services or products you offer

It’s important to weigh all of these factors to ensure you choose the right insurance company and get adequate coverage at a cost you can afford.

What liabilities does a salon face?

Salons face unique liabilities that other types of businesses do not. Just the simple fact of welcoming customers to a physical location brings along new types of risks that should be addressed with salon insurance.

Ultimately, what salon insurance covers is based on the type of policies you choose and the type of services your business offers.

Some common risks that are typically covered by beauty salon insurance policies include the following:

• Employee injuries: If someone gets hurt while they are working, hairdresser insurance can help protect your beauty salon from potential damages. Depending on the type of coverage, if an employee’s injuries result from tools or treatments used in the salon, workers’ comp insurance can pay for doctors’ visits and other medical costs.
• Customer injury: If a customer is hurt while at your salon, salon liability insurance usually pays for any medical care the customer needs. Similarly, if a product you sell is faulty and causes injury to a customer, product liability coverage can pay to settle a claim. Keep in mind that injuries resulting from employee negligence or malfeasance may not be covered.
• Unhappy customers: If a customer files a claim agains you for negligence, malpractice, and other work-related errors and mistakes errors and omissions (E&O) insurance extends to medical payments, legal fees, and other expenses for claims brought against the salon or one of its employees.
• Client lawsuit: Salon insurance can protect your salon in case a customer sues you. This may happen if someone gets hurt at your salon or if a customer is dissatisfied with your services. In these cases, insurance can help pay for medical bills or other costs stemming from the lawsuit, including the cost of a legal defense. Multiple types of policies can cover laswuits.
• Property damage: It’s no secret that driers, flat irons, and curlers are fire hazards when not handled properly. If a salon is damaged by a fire or another means, commercial property insurance can help pay to repair facilities and replace key pieces of expensive equipment. Insurance may also cover medical payments if anyone gets hurt in a fire at the salon.
• Theft: Salon insurance can help your business protect its assets and income in the event of theft. If expensive equipment, products, or cash is stolen, a fidelity bond or BPP coverage can pay to replace them with minimal out-of-pocket costs to you.
• Business interruption: If your salon needs to close temporarily due to a covered event, business interruption insurance can help pay for lost income or cover other expenses, including payroll costs. This coverage may even extend to loss of income due to a pandemic or civil unrest. Several types of policies can cover business interruptions and lost wages.

What doesn’t salon insurance cover?

Although salon insurance provides valuable protection for your business, it won’t protect it from everything.

Salon insurance typically won’t cover claims that result from the following:

• Gross negligence or purposeful wrongdoing
• Certain types of natural disasters, such as floods and earthquakes
• Illegal acts
• Injuries resulting from drugs or alcohol
• Internal cyber attacks

You may need to buy additional forms of coverage to get comprehensive protection. For example, if you digitally store sensitive customer information, you should consider getting cyber liability insurance, as this isn’t usually included in a standard business insurance policy.

Always read your policy carefully to understand what is and is not covered by your particular plan. Address all coverage gaps to see if you must buy additional types of coverage.

If you aren’t sure what types of coverage you need, a licensed insurance agent can help.

Other important types of businss insurance for salons