Salon insurance refers to the business policies salon, barbershop, and spa owners typically purchase. The most common form of hair salon insurance is general liability, which covers claims the business caused injury, property damage, or reputational harm. General liability insurance for most small hair salons typically runs from $350 to $1,600 per year in premiums.
Cost isn’t the only thing hair salon owners should consider when it’s time to buy insurance. They should also look for policies that cover their specific risks, which is why salon owners should check out The Hartford. Its team of experts can help you tailor its business owner’s policy, so it fits both your business and your budget. You can get a no-obligation quote in minutes.
How Hair Salon Insurance Works
Hair salon insurance is not a specific policy but rather a combination of business policies tailored to suit beauty salons and barbershops. For example, most salons need general liability insurance to cover the expense of someone suing over bodily injury, property damage, or reputational harm.
However, general liability insurance isn’t the only policy salons need. This is why most salon owners get a business owner’s policy that bundles general liability, commercial property insurance, and business interruption insurance into one package. While smaller hair salons might pay between $350 and $900 for general liability, they can get more coverage in a business owner’s policy (BOP) and only pay $420 to $1,000 per year.
Hair Salon Insurance Common Exclusions
Insurers may exclude operations that make your business too risky for them to insure. In the spa and salon industry, excluded practices are usually either new and untested or invasive. Some examples are:
- Tanning services
- Airbrush services
- Hair implanting and transplanting
- Eyelash dye or coloring services
- Massage therapist services
- Red light therapy services
Offering these services doesn’t mean you can’t get coverage, but you may have to pay extra or go to a surplus broker for your liability policies.
Who Needs Salon Insurance?
When insurance carriers create salon insurance policies, they usually have several professions in mind, such as:
- Barbers and hairstylists
- Day spa owners
- Cosmetologists and estheticians
- Manicurists and pedicurists
Salon Insurance Providers
Spa and salon owners who want to customize a tailored business owner’s policy
Home-based beauty professionals who want a discount on their BOPs
Barber shop and salon owners who want employee theft coverage included in their BOPs
Hairstylists, nail techs, and estheticians who want professional and general liability at a low price
Beauticians who want to compare policies and premiums from multiple carriers
Salon owners should look at top insurance carriers that specialize in the beauty industry so that they know their carrier can get them adequate coverage. Working directly with a carrier allows you to walk its representative through all of your operations to identify risks. However, some hairstylists may prefer working with a business insurance broker. Online brokers can usually offer multiple quotes for comparison and get coverage in place quickly.
Salon owners who want to tailor their policies to their unique operations should consider getting a BOP from The Hartford. In addition to bundling property and general liability coverage, The Hartford’s BOP has five optional endorsements salon owners can use to increase their protection, including coverage for professional errors, data breaches, and loss income due to off-premises utility services.
Hairstylists who are running their businesses out of their homes can get affordable BOPs online through Hiscox. The company is also one of the few large insurance carriers that offers an online application for salon insurance that is easy to use and returns quotes within seconds. The carrier’s BOP provides coverage limits of up to $4 million and starts at $41.67 per month. Additionally, Hiscox offers up to 5% off for home-based businesses.
Allstate offers salon owners general liability and commercial property insurance in a BOP that includes coverage for employee dishonesty and stolen cash. Most carriers offer crime insurance as an optional coverage, so Allstate is ideal for salon owners who are concerned about employee theft.
Beauty & Bodywork Insurance
Beauty & Bodywork Insurance is a low-cost option for a wide range of beauty professionals. For just $96 per year, hairstylists, estheticians, cosmetologists, and nail technicians can get up to $3 million in general and professional liability coverage and $2,000 in property coverage. Students working on their clinical hours can get a policy for just $67 per year.
CoverHound is ideal for beauticians who want to shop their business to top-rated carriers like Chubb, biBERK, and Nationwide. Most business owners see multiple quotes when they submit an application through CoverHound. Once they get their quotes, salon owners can review their options on their own or get help from a CoverHound representative by email or phone. CoverHound representatives are compensated on service, not sales, so they’re incentivized to give impartial and helpful advice.
Common Hair Salon Insurance Policies
Type of Insurance
What It Covers
Third-party claims for bodily injury, property damage, and reputational harm
Damage to business-owned assets like building, equipment, and inventory
Medical bills and wage replacement for employees who suffer work-related illness or injury
Third-party claims of financial harm due to your mistakes, negligence, or failure to fulfill contractual obligations
Damage to business-owned assets caused by internal malfunctions
General Liability Insurance
General liability insurance covers third-party bodily injury, property damage, and advertising injury. This is a core coverage for salon owners because claims from third parties are a common risk. Also, general liability is often required for business licenses and commercial leases. Instances where general liability applies include:
- A customer’s medical bills after they slip in your salon
- A neighbor’s repair bills if a fire in your salon causes smoke damage in their building
- Your legal bills if a competitor sues for defamation
General liability usually has 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 makes customers’ hair fall out, then the products-completed operations portion of your general liability policy covers your court costs.
Commercial Property Insurance
Commercial property insurance covers your business’ physical assets like your salon and the contents within it. Policies typically pay to repair or replace these assets when they’re damaged by certain events, such as fire, theft, vandalism, or windstorm.
Salons usually get commercial property bundled and general liability insurance at a reduced rate by buying BOPs. Most BOPs also include business interruption coverage, which covers your lost income and ongoing expenses if your salon is forced to close because of a covered event.
Workers’ Compensation Insurance
Workers’ compensation insurance provides benefits to stylists, assistants, receptionists, and other employees of your hair salon when they suffer work-related injuries or illnesses. Coverage includes medical bills and lost wages and is required in most states when a business has one or more employees.
State law determines coverage, but injuries covered by workers’ comp typically include:
- Occupational injuries such as lung disease caused by breathing in hazardous chemicals
- Traumatic injuries such as a broken wrist after a fall
- Repetitive stress injuries like carpal tunnel from cutting hair
Professional Liability Insurance
Professional liability insurance, also called errors and omissions (E&O) insurance, covers your legal fees if a client claims your negligence or mistake caused them financial harm. Whether their costs are your fault or not, professional liability insurance helps pay lawyer’s bills, court fees, and judgments or settlements.
For example, 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 that client sues, professional salon liability insurance covers your legal bills.
Equipment Breakdown Coverage
Equipment breakdown coverage pays for losses caused by mechanical failure of nearly any equipment, including tanning beds; computers; and heating, ventilation, and air conditioning (HVAC) systems. It can be purchased as a standalone policy or endorsed onto a property policy. Many salon owners assume their commercial property insurance covers these events, but that policy only pays for damage caused by external sources. 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. That’s when they’re most likely responsible for repairs to boilers and air conditioning units. 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
Salon owners may need coverage beyond the policies listed above. This mainly depends on your business practices like whether or not you own the building where you work or if you drive to meet clients.
Commercial Auto Insurance
Commercial auto insurance covers repairs and related lawsuits when a vehicle used by your salon business is involved in an accident. Most states require a minimum amount of liability coverage for business-owned vehicles to pay for damage you cause others, but policies can also include coverage for damage to your cars and any vehicles your business rents, hires, or borrows.
Commercial Umbrella Liability Insurance
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.
Commercial Crime Insurance
Commercial crime insurance covers financial losses stemming from illegal activities like check fraud, theft, and counterfeit money schemes. Most policies reimburse policyholders whether the criminals are employees or outside actors.
Salon owners often assume these financial losses are covered in commercial property. Unfortunately, property policies often exclude employees’ actions and stolen money, so commercial crime insurance is essential for salon owners who have employees or typically have cash on hand.
Hair Salon Insurance for Booth Renters
Salon owners who lease space to independent contractors, often called booth renters in the industry, may have additional insurance concerns. More often than not, neither general liability nor professional liability covers independent contractors working in your salon. This does not, however, mean you can’t be caught up in a lawsuit over a booth renter’s actions.
To make sure they are fully protected, salon owners have three options:
- Look for an insurer that extends coverage to booth renters.
- Add their booth renters to their liability policies as additional insured.
- Require all booth renters to carry hairstylist liability insurance.
The first two options may cause an owner’s hair salon liability insurance costs to go up, but they also ensure that coverage is in place. The third option puts the burden and cost of getting insurance on the contractor, but the salon owner will still need to follow up to make sure the contractor gets and maintains sufficient coverage.
Salon Insurance Costs
Salon insurance costs depend on the number of policies and coverage amounts selected. Owners who only get a BOP pay around $420 to $1,000 annually. However, BOPs don’t cover all the risks salons face, so many owners may opt for additional policies. This can raise their total insurance costs to $800 to $2,200 per year.
Hair Salon Insurance Costs & Deductibles by Policy
General Liability Insurance
$350 to $525
$1 million per occurrence, per $2 million aggregate
$0 to $500*
Commercial Property Insurance
$300 to $700
Varies based on property value
$500 to $1,000
Professional Liability Insurance
$450 to $1,300
$1 million per occurrence, per $2 million aggregate
$500 to $1,000
*Insurers typically don’t require a deductible for general liability insurance, but salon owners can request one to help lower premiums.
Policies and coverage amounts have a major impact on salon insurance costs, but insurers consider other factors when setting premiums. Many of these factors are characteristics of your business, but policy options play a factor too.
A few of the factors that go into hair salon insurance costs include:
- Operations: How you run your business has a major impact on your costs. For example, salons with tanning beds typically pay higher premiums than those that don’t.
- Revenue: Salons with more revenue often have higher premiums for hairstylist liability insurance because courts consider income when awarding judgments, which means these salons potentially cost more for insurers to cover.
- Employees: Having more staff increases your likelihood of filing workers’ comp, general liability, and commercial property claims.
- Deductibles: Opting for a higher deductible typically lowers your premium because it means you’re taking on greater financial responsibility in the event of a claim.
- Coverage amount: You can increase limits on most policies, but that increases your overall salon insurance costs.
- Location: Certain locations may 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.
Hair Salon Insurance Frequently Asked Questions (FAQs)
We’ve tried to cover most of the information you need to choose the appropriate hair salon insurance for your operations. However, every salon operates differently, so we’ve included the answers to some of the most commonly asked questions about salon insurance here.
Do I need hairdressing insurance if I see clients at my home?
Hairstylists who work out of their homes need hair salon insurance because most homeowner’s policies exclude business activities. This means if a client is injured or accuses you of professional negligence, you may have to pay the costs out of your own pocket. BOPs are an easy solution for this predicament.
Is commercial auto necessary if I drive my personal car for business?
Like homeowner’s insurance, personal auto policies typically exclude business driving from coverage, so you probably need commercial auto for any work-related trips. This is especially true if you regularly drive your personal vehicle for salon business. However, you may have sufficient liability coverage in your personal auto coverage if you only do this occasionally.
Are booth renters independent contractors or employees?
Booth renters are traditionally independent contractors, or 1099 employees, which means they are technically small business owners in their own right. Salon owners need to be careful that they both treat and classify booth renters as independent contractors, or they can end up owing back pay and employment tax.
Should salon owners get backup of sewer & drain insurance coverage?
As a hair salon owner, it is common to have hair clogged in drains in the course of work, which can cause water damage to the building. Adding an endorsement for backup of sewer and drains to your insurance policy can help cover the resultant water damage and cleanup costs.
There are many different 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 beauty 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.