Hazard Insurance

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What Types Of Salon Insurance You’ll Need For Your Business


There are risks involved in running a salon. Sometimes things go wrong. It’s how it is.

All salon owners should have a set of insurance policies.

What insurances are required for salons? Which insurance policy is the best for salon owners? What type of insurance should a salon owner have?

This can seem confusing at first glance. This is why I have created this quick and easy summary of insurances that you should consider when opening a hair salon, nail salon, or beauty salon.

Note that I am not an attorney or insurance agent. This article will give you an idea of what you might need. 

What Is The Purpose Of Insurance For Beauty Salons?

Salons can be prone to many problems. Accidents can happen, even though hair stylists and other salon workers take great care.

Accidents can occur to clients, employees, owners, and even the building itself. Salon insurance covers potential losses in the case of damage.

It pays for legal costs. It can also be used to repair or replace damaged equipment.

Salon owners without insurance would be responsible for these expenses. These expenses can be fatal for a salon or could end a stylist’s career.

Salon insurance can help you reduce risk and protect your livelihood.

It is impossible to predict when or if an accident might occur. Salon owners and workers must plan for an accident.

Salon owners must protect their employees, clients, and properties. Salon owners must have the right insurance in order to ensure protection.

What Insurance Does A Salon Need?

A beauty salon should have the following insurance policies:

  • General Liability Insurance
  • Commercial Property Insurance
  • Professional Liability Insurance
  • Product Liability Insurance
  • Workers Compensation Insurance

Types Of Beauty Salon Insurance

General Liability Insurance

General liability salon insurance covers all mishaps that could occur at work. If a customer falls or slips, for example.

A liability policy covers legal defense costs, medical expenses, and settlement costs if a customer files a suit.

The law does not require salons to carry liability insurance. However, salon owners are not required to have liability insurance.

This is because people are quick to file lawsuits. A salon could be sued for thousands of dollars and attorney fees.

This type of event is prevented by a general liability policy.

General liability insurance is required for hairdressers who see clients at their homes. The homeowner policy does not include business activities.

Commercial Property Insurance

Also known as commercial property and casualty, insurance for commercial property is also called insurance for commercial property.

This covers your property in case of physical damage. It can be used to protect your property in the event of theft, fire, flooding, or other incidents.

It covers salon contents such as chairs, tanning beds, and other equipment. It also covers any exterior fixtures, such as signs or fences that are associated with the business.

This policy protects against expenses that are not covered by the repair.

This policy can be very useful for hair salons in many different ways. This policy can be used to cover unexpected costs, such as replacing a costly hood hairdryer.

If a pipe bursts and damages the tanning bed, the policy will pay the cost of the tanning bed, the repair work, and any loss of revenue due to the tanning bed being out of service.

Commercial property insurance doesn’t cover earthquake or flood damage. Owners of beauty salons located in flood- or earthquake zones should add this coverage to their policy or purchase a separate policy to protect themselves against these risks.

Plate glass walls are not covered by commercial property insurance. If they have this in their salon, salon owners will need it added to their policy.

Business Owner Policy

A Business Owner Policy is offered by some insurance companies. A Business Owner Policy combines general liability insurance with commercial property insurance.

It protects against property damage and liability claims. You can choose to add additional coverages.

Combining insurance policies can be a cost-effective and easier option. A business owner policy does not require additional general liability insurance.

Professional Liability Insurance

This insurance is also known as errors and omissions coverage. This coverage protects your business against claims of negligence.

It covers bodily injury and damage caused by errors in the performance of your professional services.

Here are some examples of salons that have this coverage:

  • Hairdressers make mistakes when cutting hair or coloring hair.
  • The client reacts to hair color. The client can still sue even if they claim not to have allergies and that the hairdresser did the job according to the instructions.
  • Overprocessing can cause hair loss in clients.
  • A client who is suffering from pain after a massage claims that their therapist made mistakes.

Salons are protected from such situations by professional liability insurance.

Are beauty salon owners required to have both professional and general liability? The short answer to this question is yes.

General liability covers injuries or damages to salon property. Professional liability covers injury and damage that may result from the professional services rendered.

Salons have both these risks and need both insurance policies.

Salon owners often rent their salons to stylists. This could mean that the general liability policy does not cover the stylist.

Salon owners should require stylists to have professional liability insurance. This policy protects both the stylist and salon owner in the event that there is a lawsuit.

Product Liability Insurance

Salons should also have product liability insurance. If they sell products, this beauty salon insurance covers them.

Clients can be affected by a faulty product. Even if the salon did not make the product, they might still be liable.

A product liability policy will pay for the costs of any compensation claims if a client files suit against the salon due to a defective product.

Workers Compensation Insurance

In most states, workers’ compensation insurance must be purchased. This insurance protects employees in the event of an injury or illness on the job.

It pays for medical treatment and can replace wages that are lost due to illness. This insurance covers legal fees if the injured worker sues the salon.

It protects beauty salons:

  • Stylists
  • Assistants
  • Receptionists
  • Other employees

This insurance covers employees who work with sharp objects and hot substances all day. If an employee gets burned on the arm, it will pay for treatment.

Before purchasing insurance, a risk assessment is required. The risk assessment helps owners identify potential hazards and take preventive steps.

Owners will be able to determine which insurance is best for their business after identifying the risks.

Make sure that you fully understand the terms and conditions of your insurance policy before signing up. Owners with special circumstances might need additional insurance policies.

What Is The Cost Of Beauty Salon Insurance?

Affordable insurance policies. Insurance costs will increase if a beauty salon requires more coverage.

The top salon insurance companies consider many factors when determining the price and coverage of their salons. The following factors can affect the cost of beauty salon insurance:


The insurance costs will be affected by how the owner manages the business and the services they offer. Salons that have tanning beds are more likely to be ineligible for insurance than those without.


Insurance prices are also affected by the number of salon employees. Workers’ compensation insurance costs are more expensive if there are more employees.

There is a higher chance of accidents if there are more employees. Also, general liability and commercial property insurance costs will rise.


When deciding whether to award judgments, courts consider income. Salons that generate more income might be subject to higher premiums.

Because it is more expensive for insurance companies, they will not cover them.


The deductible is another cost factor in salon insurance.

The premium will be lower if the deductible is higher. Salons are responsible for more of the financial costs.

The deductible is lower, which means that the premium will be higher.


Salon insurance costs can rise if you increase limits or cover special considerations. The cost of insurance for salons that lease unique properties will increase.

Salons with a history of claims may be charged more by insurance companies.


Higher risks exist in certain locations.

The salon could be located in an area that is notorious for crime or prone to flooding. These cases can result in a higher commercial property premium.

Full salon insurance costs as little as $50 per month, or as much as $1,000 per month, depending on the number and services offered, as well as the location.

Insurance costs are affected by the insurance company you choose, your policies, and the state in which you live. The cost of salon insurance can be reduced by combining policies and learning more about the factors that impact it.

Salon owners should also think about insurance. For reliability, compare different insurance companies.

Look for one that covers the salon’s particular risks.

Salon Insurance: Conclusion

When a business offers a service to clients, there is always the risk of something going wrong. Salon insurance is essential for salons, nail salons, and spas.

Salon owners without insurance are liable for any legal and compensatory fees incurred in the event of an accident that affects clients or employees. They could also be exposed to unexpected catastrophes like theft, storms, and internal damage.

Salon owners are often worried and stressed. Full insurance coverage can give you peace of mind.


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