What is salon insurance?
Salon insurance is a type of commercial insurance that covers a range of risks you may encounter in the day-to-day operations of your salon.
Some of the most common types of coverage included in hair stylist insurance are general liability insurance, commercial property, and business interruption insurance. These coverages protect from losses resulting from injury to patrons, property damage from accidents, and compensation for lost wages in the event of closure due to a natural disaster, a pandemic, or other unforeseen events.
Having beauty salon insurance is essential if you want to protect your business and its assets should an incident occur. It’s an important part of financial planning and a way to shield you and your business from significant potential losses.
Who needs salon insurance?
Salon insurance provides essential coverage for many different types of individuals and businesses in the beauty industry.
Hair salons and hair stylists, nail salons, tanning salons, cosmetologists, and estheticians should all have some form of salon insurance to protect themselves against the daily risks their business faces.
Examples of beauty professionals who should have some form of salon insurance include the following:
- Hairdressers and hairstylists
- Nail technicians
- Tanning salon owners and employees
- Makeup artists
- Massage therapists
No business is immune from risks. Regardless of how skilled you are, how long you’ve been in business, or whether you own the facility you practice in, it’s essential to have salon insurance to protect you, your customers and your business. 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.
What does beauty salon insurance cover?
Beauty salon insurance covers a range of risks unique to the beauty industry.
Without insurance, you risk paying out of pocket for customer and employee injuries, client lawsuits, fire damage, theft and other perils.
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, insurance can pay for doctors’ visits and other medical costs.
- Customer injury: If a customer is hurt while at your salon, salon insurance usually pays for any medical care the customer needs. Keep in mind that injuries resulting from employee negligence or malfeasance may not be covered.
- 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.
- Fire: If a salon is damaged by a fire, insurance can help pay to repair or replace facilities and 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 and products are stolen, salon insurance can pay to replace them with minimal out-of-pocket costs to you.
- Property damage: Salon insurance can also help protect your salon’s facilities and equipment from damage other than fire or theft. If a customer or member of the public breaks something, insurance may pay to repair or replace the item.
- 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.
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.
What types of insurance do hair salons and hairdressers need?
As a hair salon owner or hairdresser, you should be prepared for a variety of potential risks.
From employee injuries to customer lawsuits, you may need several different types of insurance coverage to protect your business from potential liabilities.
Below are some of the most common types of insurance that hair salons and hairdressers may need.
General liability insurance
General liability insurance is the most common type of business insurance. This type of coverage protects you from claims of bodily injury, property damage, and advertising injury. In these cases, it can help cover the cost of medical bills, legal fees, and any expenses associated with the damaged property.
If a client slips on a wet floor at your salon and gets badly injured, general liability insurance could cover the cost of any medical treatments, as well as any legal fees should they decide to sue you.
Having this coverage provides peace of mind knowing you are protected from some of the most costly liabilities that may arise in the course of business.
Professional liability insurance
Also known as errors and omissions (E&O) insurance, this type of business insurance protects you from claims of negligence, malpractice, and other work-related errors and mistakes. The coverage extends to medical payments, legal fees, and other expenses for claims brought against the salon or one of its employees.
For example, if you recommend a product that causes your client to suffer an allergic reaction, professional liability could help pay for any resulting medical treatment or legal fees.
Workers’ compensation insurance
Workers’ compensation insurance protects your employees if they fall ill or get injured on the job. This type of insurance covers medical expenses related to the accident, as well as necessary rehabilitation services. It also pays a portion of the employee’s lost wages if they are unable to work.
Almost all states require employers to carry workers’ comp if they have any employees. Even if you work independently, you can still purchase this type of coverage to protect yourself if you get hurt or sick at work.
Inland marine insurance
Inland marine insurance covers your business’s property or equipment while in transit. This coverage is important to have if you do house calls or provide bridal services outside your usual facilities. This type of insurance also covers equipment temporarily stored off-site and guards against damages due to breakdowns in mobile equipment.
Rental damages coverage
Rental damages coverage protects you from having to pay to repair or replace damaged property that you rent or lease. It’s critical to have this type of coverage if you rent booths in a salon or equipment like chairs, washbasins, and dryers to operate your business.
This type of insurance can cover any accidental damage to the rented items during normal use. If the rented property is damaged by things like theft or fire, any resulting financial losses could also be covered. By utilizing rental damages coverage, you can help protect yourself and your business if it relies on rented property to operate.
Commercial auto insurance provides coverage for damage caused to vehicles used for business purposes. This includes collision, property damage, and medical expenses due to injury. For salons and hairdressers, commercial auto insurance can cover the cost of repairs if there is an accident while traveling for work or transporting supplies or clients.
Commercial auto insurance can also provide coverage for uninsured motorist bodily injury if either you or your clients are injured by an uninsured driver. When it comes to protecting your salon or hairdressing business, commercial auto insurance is essential if you work outside of a fixed facility.
Call for help to decide what type of business insurance you may need.
How much does hair salon insurance cost?
The cost of hair salon insurance generally depends 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.