Hairstylist and Beauty Salon Insurance

When determining hairdresser insurance costs, insurers consider several factors related to your business operations during underwriting, such as:

• Services offered: A salon that provides haircuts and coloring may have different insurance needs than one that also offers massage, tanning, or other higher-risk services, like hair removal.
• Value of business property: The cost to insure salon equipment, furniture, styling tools, products, and other business property can affect your premium. More valuable property may require higher coverage limits.
• Business income and size: Salons with higher revenue, more customers, or larger operations may pay more for certain types of coverage.
• Location: Insurance rates can vary by state and location based on local risks, property values, and the likelihood of certain claims.
• Number of employees: Having more employees can increase your exposure to workplace injuries and other risks, potentially affecting your workers' compensation and general liability coverage costs.
• Policy limits and deductibles: Higher coverage limits generally result in higher premiums, while choosing a higher deductible can lower your premium.
• Risk management: Safety measures, employee training, proper sanitation, and procedures for handling chemicals and equipment can help reduce the likelihood of accidents and insurance claims.
• Claims history: A history of filing insurance claims may signal greater risk to insurers and lead to higher premiums.

While there isn't a universal insurance requirement that applies to every hair salon or beautician, certain policies may be required depending on your state, whether you have employees, use company vehicles, and if you sign rental agreements.

Some policies that are usually required:

• Workers' comp is mandated in most states if you have employees, although when you must buy coverage varies by state.
• Commercial auto is required in almost every state if your business owns vehicles.
• General liability may be requested by a landlord if you own or rent a salon space. Salon owners may also require independent stylists renting a booth or working in their space to carry their own liability coverage.

For example, California requires barbershops and salons with staff to have workers’ comp, and Florida requires proof of general liability insurance when applying for certain salon licenses.

Even when it's not legally required, hair stylist liability insurance can protect your business against unexpected claims, expenses, and defense costs. It’s also worth understanding when a salon can refuse service to a client, since those situations can carry their own liability risks.

General liability and professional liability insurance cover different types of business risks. Salons and independent stylists may need both policies to protect against customer injuries and property damage, as well as claims related to their professional services (like allergic reactions or chemical burns).

• General liability insurance covers third-party bodily injuries, property damage, and personal and advertising injuries, such as using a client's photo on social media without their consent. For example, if a customer slips on a wet floor in your salon or your employee accidentally damages a customer's personal belongings, general liability can help cover the resulting claim.
• Professional liability insurance covers claims related to mistakes, negligence, or unsatisfactory professional services. For example, if a client claims a chemical treatment damaged their hair or an incorrect hair color caused them financial harm, professional liability can help cover legal expenses and settlements.

Another difference is how the policies typically handle claims.

General liability is usually written on an occurrence basis, meaning it can cover an incident that happens during the policy period even if the claim is filed later. However, professional liability is often a claims-made policy, meaning it must be active when the claim is reported, subject to its retroactive date and other terms.

Beyond general liability and professional liability, haircare businesses may need additional coverage based on their services, property, and business operations, such as:

• Commercial property insurance covers the physical assets your business owns, including salon furniture, styling stations, computers, inventory, and equipment, against covered events such as fire, theft, or certain types of water damage.
• Business interruption insurance, also called business income coverage, can help replace lost income and pay ongoing expenses if a covered property claim temporarily forces your salon to close. It can often be included in a business owner's policy (BOP).
• Equipment breakdown insurance helps pay to repair or replace certain equipment after a covered mechanical or electrical breakdown. This could include specialized salon equipment, such as dryers or other electrical systems.
• Product liability insurance covers claims involving injuries or property damage caused by products your salon sells or uses. This coverage is generally included under the products-completed operations portion of general liability insurance.
• Hired and non-owned auto (HNOA) insurance protects your business against certain liability claims if you or your employees use rented, borrowed, or personal vehicles for business purposes, such as traveling to clients or picking up salon supplies. However, it doesn't cover physical damage to those vehicles.

It's easy to find the right hair salon insurance coverage with Insureon. Our easy online application lets you compare quotes from trusted providers to find policies that fit your budget and your business risks.

Other ways to save money on business insurance include:

• Bundle your coverage: Small business owners often save money by purchasing two or more types of coverage in one package, such as a business owner's policy.
• Customize your policies: Make sure your policy reflects your business's actual risks and assets. Avoid paying for more coverage than you need, but don't leave your salon underinsured. Also, a higher deductible can lower your premium, but make sure you can afford the out-of-pocket expense if you file a claim.
• Reduce workplace risks: Maintain clean workspaces, properly store chemicals and styling products, and train employees on safe equipment use to help prevent accidents and claims.
• Maintain a good claims history: Taking steps to prevent customer injuries, property damage, and workplace accidents can help keep your business's risk profile low.
• Review your coverage regularly: Reassess your insurance as your salon grows, adds employees, or expands its services so you're not paying for outdated or unnecessary coverage.

Independent hairstylists, mobile hairdressers, and rent-a-chair beauticians may have different insurance needs than salon owners. If you work independently, you may not need property coverage for a physical salon space or workers' comp if you have no employees. However, you should still consider general liability, professional liability, and coverage for your tools and equipment.

If you need help finding the right coverage, don't hesitate to contact an Insureon agent. They can help you find cost-saving bundles, choose the best coverage and payment plan for your budget, and add endorsements for any special risks.