Salon insurance refers to the business policies typically purchased by salons, barber shops, and spas. The most common form of salon insurance is commercial general liability, which covers third-party bodily injury, property damage, and reputational harm. Insurance costs for most small hair salons typically run from $350 to $1,300 per year in premium.
When it’s time to buy insurance, salon owners should check out The Hartford. Their team of experts can help you find quality coverage that fits both your business and your budget. You can get a no-obligation quote in minutes.
Salon Insurance Providers
Salon owners who want to customize their business owner’s policy with add-on coverages
Estheticians who want to get immediate quotes for affordable coverage online
Beauty shop owners who want coverage for employee theft included in their BOPs
Hair salon owners who need workers’ compensation insurance
Beauticians who want to compare policies and premiums from multiple carriers
Salon owners should first consider insurance carriers with healthy financial resources. High marks from ratings agencies indicate the carrier has the resources to pay claims. Owners should also consider whether they want online quotes or if they want to work with an agent. Quotes online are usually faster, but agents can help owners evaluate offers.
Salon owners who want to tailor their policies to their unique operations should consider getting a business owner’s policy (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 water damage from backed-up sewers and drains.
The Hartford is a large, national insurance carrier, and that can be an advantage for businesses of all sizes. Large carriers usually have greater financial resources, which is important both in terms of paying claims and providing a variety of coverages.
Estheticians who want to use an online platform to get affordable coverage should submit an application with 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.
Hiscox is a national carrier that has been writing commercial policies for small business owners for over 100 years. The personal care industry is one of Hiscox’s top markets, and the company has developed quality products for salons, including business owner’s policies (BOPs) with up to $4 million in coverage that start at $41.47 per month.
Allstate offers salon owners general liability and commercial property insurance in a business owner’s policy (BOP) that includes coverage for employee dishonesty and stolen cash. Most carriers offer that crime insurance as an optional coverage, so Allstate is ideal for salon owners who are concerned about theft.
Allstate is a well-known insurance company that provides liability insurance for hairdressers through a system of local agents. Although Allstate is one of the largest U.S. insurance providers, its presence in thousands of communities across the country allows for responsive, personalized service.
AP Intego is the right choice for hair salon owners who have staff and need workers’ compensation insurance. By partnering with popular payroll services, AP Intego is able to offer its clients pay-as-you-go coverage that automatically charges monthly premiums based on your salon’s current payroll.
AP Intego has a large and impressive network to help provide insurance to salon owners. It provides coverage for millions of small businesses in all 50 states and has over 300 carrier partnerships to quote hair salon insurance. The company can offer competitive quotes through its carrier relationships.
CoverWallet is ideal for salon owners who want to shop around. Most business owners see multiple quotes when they submit information through CoverWallet. Once they get their quotes, salon owners can review their options on their own or get help from a CoverWallet representative via email, chat, or phone.
This is one reason CoverWallet is on our list of top online insurance brokers that specialize in getting small business owners quality insurance. Its relationships with top carriers, including CNA, Liberty Mutual, and Progressive, along with an easy online application, mean salon owners can get quotes in under five minutes.
How Hair Salon Insurance Works
Salon insurance is not a specific type of insurance but rather a combination of business policies tailored to suit beauty salons and barber shops. For example, salons need general liability insurance to cover the expense of third-party claims of bodily injury, property damage, and 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 (BOP) that bundles general liability, commercial property insurance, and business interruption insurance into one package. While smaller salons might pay between $350 and $525 for general liability, they can get more coverage in a BOP and only pay $420 to $900 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, insurers often exclude practices that are either untested or invasive. This doesn’t mean you can’t get coverage for these operations, but you may have to pay for an endorsement to get the coverage you need.
Some of the common exclusions for hair salon insurance include:
- Tanning services
- Airbrush services
- Hair implanting and transplanting
- Eyelash dye or coloring services
- Massage therapist services
- Red light therapy services
Types of Hair Salon Insurance
Salon owners typically need at least four business insurance policies. The two most common are general liability and commercial property, which most owners can bundle into a BOP. Additionally, salon owners with employees need workers’ compensation insurance in most states, and they should consider professional liability coverage in case they’re accused of negligence.
Most Common Types of Salon Insurance
Type of Insurance
What It Covers
Third-party claims for bodily injury, property damage, and reputational harm
Business-owned assets such as 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
General Liability Insurance
General liability insurance covers third-party bodily injury, property damage, and advertising injury. This is the main coverage type for salon business owners because claims from third parties are a common risk. Also, general liability is often required for business licenses and commercial leases.
Some examples of costs covered by general liability insurance 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 includes 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, such as your salon and the contents within it. Policies typically pay for damage to these assets caused by fire, theft, vandalism, or extreme weather. Theft is one of the greatest risks small businesses face, so property insurance is a must for salons in most locations.
Most salons qualify for a business owner’s policy, which combines commercial property with general liability insurance at a reduced rate. BOPs also include business interruption coverage. If your salon is forced to close because of a covered event, business interruption covers your lost income and ongoing expenses during the closure.
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 such as carpal tunnel from cutting hair
Professional Liability Insurance
Professional liability insurance, also called errors and omissions insurance (E&O), covers your legal fees if a client claims your negligence or mistake caused them financial harm. Whether their costs are actually 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.
Additional Hair Salon Insurance Policies
Many salons need coverage beyond the most common business insurance policies like general liability. This mainly depends on your business practices, such as whether or not you own the building where you work or if you drive to meet clients.
Some examples of additional liability insurance for hairdressers include:
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 of liability coverage for business-owned vehicles to pay for damages you cause others, but policies can also include coverage for damage to your cars and any vehicles your business rents, hires, or borrows.
Say you send an employee to pick up beauty supplies. If the employee is in an accident, you can be held liable for damages to their car as well as damage they cause others. Commercial auto insurance with hired and non-owned auto coverage can pay for the damage. Salon owners who don’t have business-owned vehicles can sometimes add hired and non-owned auto insurance to their general liability policy.
Commercial Umbrella Liability Insurance
Commercial umbrella insurance extends the limits on underlying salon liability insurance policies in increments of $500,000 or $1 million. Unlike other policies, 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 activity such as 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.
Equipment Breakdown Coverage
Equipment breakdown coverage pays for loss caused by mechanical failure of nearly any equipment, including tanning beds, computers, and HVAC systems. Again, many salon owners assume their property insurance covers these events; however, commercial property pays for damage caused by external sources. Equipment breakdown coverage pays for damage caused by internal sources, such as 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.
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:
- They can look for an insurer that extends coverage to booth renters.
- They can add their booth renters to their liability policies as additional insured.
- They can require all booth renters to carry hair stylist liability insurance.
The first two options may cause the owners’ hair salon liability insurance costs to go up, but choosing either also means they can be sure coverage is in place. The third option puts the burden of getting insurance on the contractor, but the salon owner will need to follow up to make sure the contractor gets and maintains sufficient coverage.
If you decide to only rent booths to individuals with salon liability insurance, Kathy Lopez, an account manager with Salon & Spa Specialty Insurance, recommends taking an additional step to protect your business:
“Salon owners should also insist on being added as additional insureds, ensuring that not only does that independent contractor have coverage for the services being performed, but also that if someone decides to sue them, the owner is also covered under the independent contractor’s policy.”
— Kathy Lopez, Account Manager, SASSI
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 $900 annually. However, BOPs don’t cover all the risks salons face, so many owners may opt for additional policies. This can raise their total salon insurance costs to $800 to $2,200 per year.
Hair Salon Insurance Costs & Deductibles by Policy
General Liability Insurance
$350 - $525
$1 million per occurrence / $2 million aggregate
$0 - $500*
Commercial Property Insurance
$300 - $700
Varies based on property value
$500 - $1,000
Professional Liability Insurance
$450 - $1,300
$1 million per occurrence / $2 million aggregate
$500 - $1,000
*Insurers typically don’t require a deductible for general liability insurance, but salon owners can request one to help lower premiums.
While the policies and coverage amounts have a major impact on salon insurance costs, insurers consider a number of 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 hair stylist liability insurance because courts consider income when awarding judgments, which means these salons potentially cost more for insurers to cover.
- Employees: 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, and this 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.
Tips on Getting Hair Salon Insurance
Getting the right coverage for your hair salon is essential for its success. Unfortunately, insurance applications can be long and complicated, and you usually have to fill out a separate application for every carrier. You can simplify the process by taking time to prepare.
Important tips to make applying for hair salon insurance easier include:
1. Gather the Documents You Need Before You Apply
Insurance applications can be very detailed, and while you may know some of the information you need, chances are you’re going to have to look some of it up. Gathering that information before you apply helps the insurance agent, broker, or underwriter know how to best protect your business against exposures common in the salon industry.
Some of the information you may need when you apply for salon insurance include:
- Business contact information
- Building lease, if applicable
- Number of employees
- Value of assets, such as chairs, equipment, products, and inventory
- Services you offer, especially hazardous ones such as chemical treatments
- Yearly revenue
- Type and amount of your customers’ personal data you store
- Any products you sell or ship to customers
- Number of years you’ve worked in the industry
- Number of years your business has been in operation
- Policy information for your current insurance coverage
- Claims history
Having the appropriate information ready for your agent or broker will help you get the coverage you need. According to Mary Graf of Graf Insurance:
“Have an open conversation with your insurance broker to discuss your current situation, including staffing and the amount you have invested in the salon, such as chairs, inventory, and artwork. This way, you can determine what risk exposures you have. Have a copy of your lease ready so you can review the insurance requirements together. Often your broker can help with different coverage options, deductibles, and payment plans that suit your particular operation and satisfy the requirements of your landlord.”
— Mary Graf, President, Graf Insurance
2. Choose a Provider That Knows the Salon Industry
Salon insurance is industry-specific, which means there are risk exposures and insurance needs that are unique to your business. An agent with experience in writing salon insurance is more likely to accurately assess risks common to the industry, such as client injuries from hair products. Their accurate assessment helps you get the right coverage at the best price.
3. Provide Accurate Information
Insurers use the information on your application to determine if they will offer coverage, which policies you need, and how much they will cost. This makes providing complete and accurate information essential to getting the appropriate coverage for your business. Leaving out information or making mistakes can cause you to be underinsured or your claims to be rejected.
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 business is different, so we’ve included the answers to some of the most frequently asked questions about salon insurance here.
Do I need hairdressing insurance if I see clients at my home?
Hair stylists who work out of their homes will likely 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 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. Backup of sewer and drain insurance coverage on your insurance policy can help cover the resultant water damage and cleanup costs.
There are many different types of salon businesses, and each one 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, it’s important to 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.