- We recommend four main types of business insurance for salons: workers’ comp, general liability, E&O professional liability, & commercial property insurance.
- Business owner policies can also be a good fit to combine general liability & property insurance into a single plan for a more affordable price.
- At a minimum, look for salon insurance that can cover your employees, your equipment, and protect against potential lawsuits and claims from customers to ensure you are protected from the most common liabilities found in the beauty industry.
- Depending on the type of services you offer, such as working off-site at photoshoots or weddings, you may need additional coverage.
- Salon insurance can cost as low as $50 per month, but pricing depends on various factors like the types of policies you choose, your business size, type, location, number of employees, and services offered.
- We recommend using an online quote tool to get matched with policies that meet your specific needs.
When you buy something using links found on our site, we may earn a small affiliate commission. This content is reviewed & supervised by The Los Angeles Times.
Best Hair & Beauty Salon Insurance for 2024
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On This Page
- Key takeaways
- Our top picks for beauty salon insurance
- Which type of insurance best protects the salon owner?
- What type of insurance should a salon owner have?
- Who needs salon insurance?
- How much does salon insurance cost?
- What liabilities does a salon face?
- Other important types of businss insurance for salons
- FAQ: Salon insurance
- Recommended articles
- Related topics
On This Page
- Key takeaways
- Our top picks for beauty salon insurance
- Which type of insurance best protects the salon owner?
- What type of insurance should a salon owner have?
- Who needs salon insurance?
- How much does salon insurance cost?
- What liabilities does a salon face?
- Other important types of businss insurance for salons
- FAQ: Salon insurance
- Recommended articles
- Related topics
Kiah Treece - Business Finance
+ 1 other
Reviewed By
Blake Esken - Los Angeles Times
Beauty salon insurance protects businesses in the cosmetology industry from liability claims, property damage, and other financial losses. It typically covers professional negligence, bodily injury, product liability, and business interruption costs.
The best business insurance is one that can adequately protect your company against the daily risks it faces. To help you find the right coverage for your business, we cover our top picks for the best beauty salon insurance of 2024 below.
Our top picks for the best beauty salon insurance
Our top picks for beauty salon insurance
Advertiser Disclosure
Arch Insurance America
AMB Financial Strength
A+ (Superior)
Specialized for:
Professional Liability
Why We Like It
Arch offers tailored professional liability insurance for small businesses in a variety of industries such as:
- business consultants
- professional services
- health & wellbeing services
Arch offers unique coverage options which include a range of extra coverages not common to most professional liability plans. This makes it a great provider for small businesses that may need added protection.
Once signed up, customers love Arch’s local approach. The company is based out of New York but has several local offices throughout the US.
Arch also boasts a strong financial rating of A+ from AM Best and is backed by over $14 billion in funding making it a solid insurance firm.
Coverage Highlights
With Professional Liability through Arch, you can gain access to your choice of:
- $1 million claim limit & $1 million aggregate limit
- $2 million claim limit & $2 million aggregate limit
Other coverage highlights include:
- $100k in Bodily injury & property damage coverage
- $25k in Data incident response expense coverage
- $25k in Non-party investigation expense coverage
- Blanket Additional Insured endorsements (optional)
Harborway Insurance
AMB Financial Strength
A+ Superior)
Specialized for:
General Liability, Inland Marine
Why We Like It
Harborway is a lesser-known provider that offers specialized coverage for:
- General liability insurance
- Business personal property insurance
- Inland marine insurance
This provider offers great coverage for equipment and items you transport or store off-premises makng is great for companies that send employees to work off-site or occaisionally do field work.
While Harborway isn’t an AM Best rated company, it is reinsured by Munich Re which has an AM Best financial strength rating of A+.
Coverage Highlights
General Liability Coverage through Harborway offers access to:
- $1 million occurrence limit & $2 million aggregate limit
Other coverage highlights for General Liability include:
- $100k in coverage for damage to rented premises;
- $5k in coverage for medical payments;
- Waiver of Subrogation (optional)
- Blanket Additional Insured endorsement (automatically included)
- Contractors’ Errors & Omissions endorsements (optional)
Business Personal Property Coverage through Harborway offers access to: *Property limits of $5k, $10k, $15k, $20k, $25k, and $50k *Blanket Additional Insured endorsement (automatically included)
Inland Marine Coverage through Harborway offers access to:
- $5k or $10k coverage limits on inland marine property
- Blanket Additional Insured endorsement (automatically included)
Accredited Insurance
AMB Financial Strength
A- (Excellent)
Specialized for:
General Liability
Why We Like It
Accredited Insurance is backed by the massively-known Travelers Insurance with whom it co-built a General Liability policy tailored specifically for small businesses.
Accredited offers insurance in all 50 states as well as Washington DC and has been in business for over 50 years. The company has proven itself for its high-quality service, stability, and integrity.
Accredited also has a strong financial strength rating of A- from AM Best. This means you can rest easy knowing that you will be supported by a strong company should anything go wrong.
Coverage Highlights
Contractors opting for General Liability through Accredited gain access to:
- $1M Occurrence limit & $2M Aggregate limit
Non-contractors have the option of plans ranging from:
- $100k occurrence limit & $300k Aggregate limit
- $1 million occurrence limit & $2 million aggregate limit
Other coverage highlights include:
- $100k in coverage for damage to rented premises
- $5k in coverage for medical payments;
- Waiver of Subrogation (optional)
- Blanket Additional Insured endorsements (optional)
Cerity
AMB Financial Strength
A- (Excellent)
Specialized for:
Workers’ Compensation
Why We Like It
Cerity offers affordable workers’ compensation policies and can cover various types of businesses and industries. As a major insurance provider in the US, Cerity is known for its:
- Low prices
- Simple policies
- Same-day coverage
When you sign up for a workers’ comp policy through Cerifty, you get same-day coverage and proof of insurance. This means you can get your business started faster with very little lag time.
Cerity is a well-known provider in the insurance industry and has an AM Best financial strength rating of A- (Excellent), as well as 4.4 stars on Trustpilot. Cerity is offered nationwide in all states except Ohio, North Dakota, Washington, and Wyoming (where private worker’s comp is not legally sold).
Coverage Highlights
Workers’ comp coverage through Cerity offers access to:
- Bodily Injury by Accident at $1M per accident
- Bodily Injury by Disease at $1M per each employee, subject to a $1M policy limit
Other coverage highlights for workers’ comp from Cerity include:
- Statutory Workers’ Compensation coverage
- Customers have the option to include or exclude the owner in coverage when permitted under state law
Advertiser Disclosure
GET A QUOTE
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:
Advertiser Disclosure
BOPs are a mixture of general liability & commercial property insurance built into a single policy. This makes them comprehensive and often cheaper than buying separate coverage.
Examples of coverage:
- A customer slips & falls at your salon
- Equipment is stolen or damaged
Protects beauty salons from claims of bodily injury and personal/advertising injury.
Examples of coverage:
- Client injuries at your salon (for example, slipping on a wet floor)
- Advertising injuries/libel
Covers salons and their employees from financial losses & liability if they become injured or ill due to work-related causes.
Examples of coverage:
- Medical expenses if you or your employees get injured at work
- Lost wages from being unable to work
Protects salons against claims of business negligence or malpractice, as well as lawsuits resulting from errors or omissions of information.
Examples of coverage:
- Lawsuit due to not warning customer of allergens in a product
- Failure to meet client's expectations
Covers the building as well as its contents against damage, loss, or theft. Ideal for protecting equipment and merchandise as well as your rented or owned commercial space.
Examples of coverage:
- Replaces stolen merchandise or equipment
- Pays to rebuild and replace equipment after a fire
Covers employee theft of funds or valuables. Especially important for businesses that handle cash or store customer valuables.
Examples of coverage:
- Reimburses funds employee took from cash drawer
- Replaces property stolen by an employee
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.
Call to discuss what type of business insurance is right for you.
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.
Call for help understanding what type of business insurance you may need.
Other important types of businss insurance for salons
Advertiser Disclosure
Covers physical assets like merchandise, beauty products, & salon equipment when in transit over land or temporarily stored at off-site locations. Ideal for field work like wedding prep or photo shoots.
Examples of coverage:
- Equipment gets lost while working on a bridal party
- Products stolen from your parked car
Specialized form of property insurance ideal for renters. It covers damage, loss, and theft of physical assets at a salon’s primary location. Covers equipment and merchandise, but not the building.
Examples of coverage:
- Replaces stolen salon products or merchandise
- Repairs damaged salon equipment & tools
Protects customer data & intellectual property from cyber-related risks such as financial losses caused by cyber-attacks, external data breaches, etc.
Examples of coverage:
- Data recovery costs
- Legal fees
Covers and reimburses company vehicles, drivers, and occupants against damage or injury during company related driving.
Examples of coverage:
- Pays medical bills after a crash
- Replaces damaged vehicle
Covers you if a product you sell causes physical damage to a customer’s property or causes an injury – including those caused by marketing mistakes.
Examples of coverage:
- Pays medical bill if a customer is injured
- Settles lawsuits from product-related issues
Extends your coverage limits for general liability, employer liability, and commercial auto insurance if you reach your max claims limit.
Examples of coverage:
- Pays settlements in expensive injury lawsuits
- Covers expensive medical bills
Advertiser Disclosure
GET A QUOTE
FAQ: Salon insurance
What insurance does a self-employed hairdresser need?
Self-employed hairdressers need a variety of coverages to properly protect their business. These typically include general liability insurance, professional liability insurance (specifically for barbers and beauty salons), and workers’ compensation insurance. Depending on the type and size of the salon owner’s business (whether they do house calls, for example), inland marine insurance, rental damages coverage, and commercial auto may also be necessary.
If you aren’t sure what types of coverage you need for your salon business, consult an independent agent to ensure you understand and protect against the specific risks facing your business.
What insurance do I need to run a beauty business from home?
Running a beauty business from home may require different types of insurance depending on the services you offer and the level of risk your business is exposed to. Generally, you should have general liability insurance, professional liability insurance, and workers’ compensation insurance. You may also need home-based business insurance, as most traditional homeowner policies only include a small amount of coverage for businesses operating in a residence.
What are the three most important types of insurance a salon needs?
The three most important types of insurance a salon needs are general liability, professional liability, and workers’ compensation insurance. These coverages protect businesses against claims arising from interactions with customers and the general public, as well as workplace-related accidents that may leave the salon owner unable to work.
In most cases, these are the most substantial risks faced by salon workers, except for those who own the building where their salon operates. In those cases, commercial property insurance is another critical coverage.
Are hairdressers insured if they rent a chair at a salon?
Hairdressers who rent a chair at a salon are usually not covered by the salon’s insurance policy. If a hairdresser is an employee of the salon, then they may be covered, but independent practitioners who rent a space typically aren’t. In these cases, hairdressers may need to secure their own coverage, including rental property coverage to protect against any damage to their rented space or equipment.
Kiah Treece is a business finance expert with more than five years of editorial experience. Through her experience as a small business owner, real estate investor, and lawyer, she’s knowledgeable in the areas of banking, loans, financing, and insurance for small businesses. Her first-hand experience has enabled her to break down complex financial topics to help consumers make informed decisions so they can spend their money wisely.
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