Hair salon insurance refers to any insurance policy that salon, barbershop, and spa owners may purchase. General liability is the broadest and most common type of hair salon insurance. Beauty salon insurance costs range from $360 to $6,900 per year, depending on the policies you need. The higher number represents a smaller group that has a large operation and needs several policies.
Hair Salon Insurance Costs
The cost of insurance for beauty salons depends largely on the number of policies and coverage amounts you select. The coverages listed below are the most common ones a hair salon owner should consider because of the broad protection they afford.
Hair Salon Insurance Costs & Deductibles by Policy
Policy | Estimated Annual Premium | Coverage Amount | Typical Deductible |
|---|---|---|---|
General Liability | $360–$2,100 | $1 million per occurrence and $2 million aggregate | $0 |
Professional Liability | $720–$2,200 | $1 million per occurrence and $2 million aggregate | $500–$1,000 |
Business Owner’s Policy (BOP) | $575–1,100 | $1 million per occurrence and $2 million aggregate | $500–$1,000 property deductible |
While the above estimates give you an idea of how much hair salon insurance may cost for your business, keep in mind that your specific premium costs may differ. This is because the number of policies and the amount of coverage you need has a significant impact on the final cost.
The top salon insurers consider numerous factors when setting premiums that will be specific to your business. For example, insurance provider Beauty & Bodywork Insurance charges a minimum of $349 for general liability for two stations and $775 for 10 stations.
Most insurers want to know about the following:
- Type of salon: The type of salon you run has a direct correlation with how much you pay for coverage. For example, if your salon offers tanning services, expect that to influence the premium.
- Revenue: Revenue is a factor that providers consider when determining premium. A business with a higher revenue can expect to pay a higher premium.
- Employees: The larger the staff, the greater the likelihood of a claim being filed.
- Deductibles: A higher deductible will usually lower your premium, while a lower deductible has the opposite result.
- Coverage amount: A liability policy for $1 million will cost less than a policy for $3 million.
- Location: Where your business is located is important for premium calculations. Certain locations face higher risks for crime, extreme weather, and flooding, which can impact your commercial property premium.
While cost is always an important part of selecting salon insurance, owners should also keep value in mind. Getting the bare minimum in coverage can save money in the short term, but you may be underinsured if you have to file a claim.
Types of Hair Salon Insurance Coverage
Policy | What It Is |
|---|---|
General Liability | Covers third-party claims for bodily injury, property damage, and reputational harm |
BOP | Is a combination of general liability, commercial property, and lost business income expense |
Workers’ Compensation | Covers employees’ medical bills and lost wages after a work-related illness or injury |
Professional Liability | Covers allegations against you or your employee regarding mistakes, negligent oversights, or failure to meet professional standards |
Equipment Breakdown | Covers damage to business-owned equipment caused by internal malfunctions |
General liability insurance is liability coverage, meaning it protects your business from allegations that your business operations caused third-party bodily injury, property damage, or advertising injury. This is a core coverage for salon owners because it is so broad and addresses many common losses a business can face. General liability is often required for commercial leases.
Instances where general liability applies include:
- A customer’s medical bills after they slip and fall in your salon
- A neighbor’s repair bills if a fire in your salon causes smoke damage to their building
- Your legal bills if a competitor sues for defamation
Helpfully for salons, general liability policies usually include products-completed operations coverage to pay for property damage and physical injury caused by defective products or faulty services. For example, if your salon is sued after the shampoo you sell causes customers’ hair to fall out, then the products-completed operations portion of your general liability policy will cover your court costs.
A BOP is a great option for hair salon insurance. A BOP combines general liability, commercial property and, usually, lost business income into a single policy, providing coverage for a salon’s most common risks. For hair salon owners, getting a BOP is more convenient and cost-efficient than getting both general liability and commercial property separately.
When shopping for a BOP, look into what insurance endorsements or coverages are automatically included for salons. Many insurers will offer several coverage enhancements through a BOP that fills any gaps in protection for your business.
Workers’ compensation insurance is mandatory business insurance coverage in nearly every state. This coverage helps your employees by paying medical costs and wage replacement if they suffer work-related injuries or illnesses. It also helps the employer by offering liability protection.
State law determines coverage, but injuries covered by workers’ comp typically include:
- Occupational injuries, such as lung disease caused by inhaling hazardous chemicals
- Traumatic injuries, such as a broken wrist after a fall
- Repetitive-stress injuries, such as carpal tunnel from cutting hair
Professional liability insurance, also called errors and omissions (E&O) insurance, covers your legal fees if a client claims that your negligence or mistake caused them financial harm. Whether their costs are your fault, professional liability insurance helps pay a lawyer’s bills, court fees, and judgments or settlements.
This coverage isn’t essential for hair salons but it can be helpful in some situations. You’ll want to consider it if you give any kind of fashion advice. Or let’s say you accidentally dye your client’s hair the wrong color and they claim they lost a modeling gig because of it. If your client sues, professional salon liability insurance helps protect you.
As surprising as it may seem, equipment breakdown isn’t covered under normal commercial property insurance. For that coverage, you’ll need either an endorsement or a stand-alone policy for equipment breakdown.
This important coverage helps with losses caused by mechanical failure of nearly any equipment, including heating, ventilation, and air conditioning (HVAC) systems, tanning beds, and computers. Equipment breakdown coverage pays for damage caused by internal sources like power surges and motor burnout.
Salon owners may need equipment breakdown insurance for the machinery housed in buildings they own. If they operate their business out of an owned property, they’re likely responsible for repairs to boilers and air conditioning units in that property. However, even owners who rent space often depend on equipment that’s expensive to repair and may take out coverage for it.
Additional Hair Salon Insurance Policies
Depending on the type of salon you run, you may need or be interested in coverage beyond what I listed above. Some common additional policies are listed below.
Unlike other policies, commercial umbrella insurance is not used to protect against a specific risk. Instead, it adds coverage when other liability policies are insufficient. For example, if your general liability limit is $1 million, but a lawsuit over a customer’s slip-and-fall costs $1.5 million, an umbrella policy pays the additional $500,000. Buying an umbrella policy is usually more cost-effective than adding coverage to your other liability insurance.
Some salons lease their space to independent contractors, commonly called booth renters. Depending on the language of your insurance policy, there is a chance that booth renters do not fall under the definition of insured. Salon owners can take the following steps to ensure they are protected:
- Find an insurance company that can extend coverage to booth renters.
- Add booth renters to their liability policies as additional insureds.
- Require all booth renters to carry their own liability insurance.
Homeowner policies exclude business activities from coverage, so any hair stylists working out of their homes need hair salon insurance. For example, if a client is injured at your home and accuses you of professional negligence, you may have to pay the costs out of your own pocket. Getting a home-based BOP can protect against this.
What Isn’t Covered by Hair Salon Insurance
Not everything is covered by insurance companies. This doesn’t mean you can’t get coverage, but you may need to pay extra or go to a surplus broker for your liability policies.
Some of the salon services many providers will not cover on a basic policy are:
- Tanning services
- Airbrush services
- Electrolysis
- Hair implanting and transplanting
- Eyelash dye or coloring services
- Massage therapist services
- Red light therapy services
Frequently Asked Questions (FAQs)
Prices vary depending on the size of the salon and the specific services offered. Costs can range from $360 to $2,100 annually for a general liability policy, or $720 to $2,200 annually for professional liability insurance.
Workers’ compensation is required in every state except for Texas and South Dakota. Each state has a different threshold for how many employees you can employ before being required to offer workers’ comp. To know for sure if this coverage is required for your business, check with your state governing authority.
General liability is the most common type of liability insurance. Due to its broad protection, this is a key policy for salons. Other policies to consider are workers’ compensation and some form of commercial property insurance.
Bottom Line
There are many types of salon businesses, and each has unique exposures that need to be protected with the appropriate insurance policies. To get a better idea of what hair salon insurance policies you need, speak with an insurance representative who can assess your risk and get you a quote from a top insurance provider.
The Hartford has a team of experts who will work with you to identify your needs and make sure your salon is covered. Get your free, no-obligation quote online in minutes.
