How much does business insurance cost for personal care professionals?

Personal care businesses pay an average premium of $38 per month, or $459 per year, for general liability insurance.

This policy provides financial protection for third-party bodily injuries and property damage, along with advertising injuries and product liability claims like allergic reactions. Some landlords may require proof of insurance before signing a lease agreement with your business.

Insureon’s licensed agents recommend a business owner’s policy (BOP) over a standalone general liability policy. A BOP combines general liability coverage with commercial property insurance to protect your beauty shop, spa, or salon, and costs less than purchasing each policy separately.

Beauty professionals can often bundle professional liability insurance with their general liability policy or BOP for increased savings and coverage.

Among personal care businesses that purchase general liability with Insureon, 35% pay less than $30 per month and 79% pay less than $60 per month.

Estheticians have a smaller, low risk business, while tattoo shops and permanent makeup artists have higher risks because of the risks associated with their equipment and procedures.

Policy limits determine how much your insurer will pay on covered claims. The per-occurrence limit is the maximum your insurer will pay for a single incident, while the aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year.

Most personal care businesses (91%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.

Businesses with large premises, such as a two-floor medical spa, typically pay more for general liability insurance than a smaller business, such as a hair salon. Your industry risk, building maintenance needs, years in operation, and your location will also affect your premium.

The monthly average cost for medical spas is $52, while the average for hair salons and styling professionals is $35. As you can see, the cost varies significantly across modalities.

General liability insurance costs depend on factors such as the coverage limits and deductible you choose, the types of professional services you offer, your business income, and any additional insured endorsements you select.

Learn more about how your insurance premium is calculated and how to save money on your general liability coverage.

Personal care businesses pay a premium of $79 per month, or $948 per year, for a business owner’s policy (BOP). This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.

A BOP provides comprehensive coverage against third-party injuries and property damage, along with damage to your own business property. You can often add professional liability insurance to a BOP for increased savings.

Because of its broad protection and affordability, Insureon’s licensed agents typically recommend a BOP for personal care businesses.

Among beauty and personal care professionals that purchase a business owner’s policy with Insureon, 33% pay less than $60 per month and 40% pay between $60 and $120 per month.

The cost of a BOP primarily depends on the value of your business property.

Generally, how much property coverage a business needs determines how much it will pay for a business owner’s policy. Nail salons and barbershops tend to own more business property and equipment, so they pay more for this type of coverage.

Most personal care businesses (87%) choose a business owner’s policy with a $1 million per-occurrence limit and a $2 million aggregate limit.

Small, low-risk personal care companies are often eligible for a business owner's policy.

Cosmetology and personal care business owners may see higher costs if they choose to add endorsements to their policy. Insurance endorsements, such as business interruption insurance or equipment breakdown coverage, are often recommended to help pay for lost income if a fire or power outage forces your business operations to cease for an extended period of time.

The cost of a business owner's policy is based on many factors, including the value of your business property, where you are located, the number of employees you have, and your specialty.

Personal care businesses pay an average of $50 per month, or $596 per year, for professional liability insurance.

Also known as errors and omissions insurance (E&O) or malpractice insurance, this policy offers critical coverage for estheticians, massage therapists, and other beauty professionals who could face a major lawsuit over a work mistake.

The cost of professional liability coverage increases depending on the potential impact of the procedures you offer. For example, a medical spa that offers Botox, waxing, wellness treatments, and other injectables may pay more for this type of insurance.

Beyond the services you offer, there are several factors that influence the cost of your professional liability policy, including your location, your claims history, and the policy limits you choose. 

Many personal care professionals choose to bundle professional liability insurance with their BOP or general liability policy to save money and broaden their coverage.

Reducing your risks also helps you avoid claims and keep your premium low. This includes clear communication with clients and thorough documentation of all communications and agreements.

Half of our beauty and personal care customers (50%) choose professional liability policies with a $1 million per-occurrence limit and a $1 million aggregate limit. Another 19% choose policies with a $250,000 per-occurrence limit and a $250,000 aggregate limit.

It's important to keep in mind that claims-made policies have less coverage because their limits don’t reset, making them less expensive initially than occurrence policies.

Additionally, you must have a policy in action when you file a claim with claims-made insurance. If you don’t, your insurer won’t pay for your previously covered loss.

As with other types of insurance, you can save money on professional liability coverage by choosing lower limits or a higher deductible.

The average premium for workers’ compensation insurance is $66 per month, or $792, per year for personal care business policyholders. This coverage helps pay for medical bills, legal fees, and partial lost wages when an employee suffers a work-related injury or illness.

Hair salon owners and other personal care businesses with employees typically must purchase this policy to fulfill state requirements and avoid penalties.

Most workers' comp policies include employer's liability insurance, which covers the cost of lawsuits related to employee injuries. There's usually no limit to how much a workers' comp policy can pay for employee benefits, though it depends on state laws.

The cost of workers' compensation insurance depends on several factors, including the number of employees you have and the level of risk involved with their jobs.

Even when it's not required, it's a good idea to purchase workers' comp for yourself, as health insurance providers can deny claims for work-related injuries.

Among hairstylists, cosmetologists, and other personal care professionals that purchase workers’ compensation insurance with Insureon, 33% pay less than $50 per month and 37% pay between $50 and $100 per month.

The cost depends on the number of employees at a business, their occupational risk, and other factors.

Get more information on how to find affordable workers' compensation coverage.

Small business owners, including hairdressers and other personal care professionals, pay an average of $145 per month, or $1,740 annually, for cyber insurance. You might also see this policy called cyber liability insurance or cybersecurity insurance.

Cyber liability insurance covers cosmetology professionals from the financial ramifications of a data breach or cyberattack. It can help pay for customer notification costs, fraud monitoring services, and other expenses necessitated by state data breach laws.

The cost of cyber insurance depends on the amount of personal information handled by your personal care business, such as customer credit card numbers, along with the number of employees who can access that information.

Beauticians and personal care professionals pay an average of $147 per month, or $1,762 annually, for commercial auto insurance.

Most states require this coverage for vehicles owned by a personal care business. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.

A commercial auto policy provides financial protection in the event of an accident involving your business vehicle. It can help pay for property damage, medical costs, and legal expenses.

The cost of commercial auto insurance depends on several factors, including the policy limits you choose, coverage options, the value of the vehicles, the driving records of anyone permitted to drive, and additional insured endorsements you select.

Learn more about how to find affordable commercial auto insurance coverage.