Just like running a makeup business, spa, or massage therapy clinic, running a beauty salon comes with many risks. Protect your beauty salon against business income loss, lawsuits, equipment breakdown, and other exposures with beauty salon insurance.
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Insurance Policies You Need for A Beauty Salon
As a beauty salon owner, you need general liability insurance, professional liability insurance, and commercial property insurance. Though less popular, you might find workers’ compensation insurance, commercial auto insurance, and employer’s liability insurance equally useful.
Beauty Salon Liability Insurance
Limits Of General Liability Insurance for Beauty Salons
| Value | |
|---|---|
| General liability insurance per occurrence limit | $1 million-$2 million |
| General liability insurance aggregate limit | $2 million-$4 million |
| Products and completed operations coverage limit | $3 million |
| Advertising injury coverage limit | $1 million-$2 million |
| Rented premises liability coverage limit | $300,000 |
| Business equipment floater limit | $2,000 |
Just like tanning salons and spas, your beauty salon allows people to access its premises.
You must grant compensation to customers, vendors, independent contractors, and visitors if they sustain injuries at your premises. Consider getting $1 million-$2 million general liability insurance.
General liability insurance for beauty salons grants a shield if nail technicians, massage therapists, microblading technicians, makeup artists, and other employees cause injuries or property damage. Here are situations where you’ll find beauty salon liability insurance useful:
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A client demands your beauty salon to compensate her pain and suffering after the nail technician caused severe bleeding while removing an ingrown nail
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The massage therapist of your salon left a client’s body swollen and full of bruises
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A client files a claim for bodily injury after falling on the floor due to oil on the floor that your employees forgot to clean
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The client was charging her phone in your beauty salon’s outlet. An electrical surge happened, and the phone got broken
Your beauty salon’s general liability insurance will take care of these costs each time a third party files a claim for bodily injuries or property damage:
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Medical treatments
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Refunds for damaged properties
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Settlements
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Attorney fees, court filing fees, and other defense costs
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Court judgments
General liability insurance for beauty salons is a broad form policy. And so, it doesn’t only cover claims for bodily injuries or property damage. This insurance will also protect your business against:
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Claims for slander, libel, copyright infringement, invasion of privacy, and breach of confidentiality
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Claims for bodily injuries or property damage caused by a commercial vehicle your beauty salon hired or borrowed
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Fire damage to a commercial space your beauty salon is renting
Your beauty salon’s general liability insurance will automatically have product liability insurance. Product liability insurance will cover costs if a claim is filed after your services aggravated existing bodily conditions, left ugly marks, or caused infections.
Public Liability Insurance for Beauty Salon
Public liability insurance for beauty salon covers claims for bodily injuries or property damage. In the USA, this is automatically offered as part of general liability insurance. Therefore, general liability policies for beauty salons in the USA automatically grant public liability coverage to the policyholder.
Professional Liability Insurance for Beauty Salons
Limits Of Professional Liability Insurance for Beauty Salons
| Value | |
|---|---|
| Professional liability per occurrence limit | $2 million |
| Professional liability aggregate limit | $2 million |
| Deductible | $1,000 |
Your beauty salon needs $2 million professional liability insurance. This type of beauty salon business insurance is very important as mistakes and oversights can happen during a microblading, massage therapy, or tanning session.
Professional liability insurance kicks in when your beauty salon and its employees committed or allegedly committed negligence, violation of fair dealing, misrepresentation, violation of good faith, inaccurate advice, and breach of confidentiality.
You can get professional liability insurance as a stand-alone policy or as an optional coverage in general liability insurance. Use this insurance when:
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A client files a claim and accuses your beauty salon of falsifying the portfolio and licenses of employees
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A client paid for more than the suggested cost of the service your beauty salon provided
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Your beauty salon shared the confidential information of a client to another party without consent
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An employee didn’t pay attention, failed to evaluate, or used the wrong products. Because of this, a client sustained severe injuries
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Your employee’s beauty salon didn’t heed to the instructions and gave the client a bad hairdo or makeup
Get all the best quotes from leading providers in a click of a button!
Commercial Property Insurance for Beauty Salons
Limits Of Commercial Property Insurance for Beauty Salons
| Value | |
|---|---|
| Building coverage limit | $15,000-$500,000 |
| Contents coverage limit | $10,000-$50,000 |
| Outdoor signs, fences, trees, and other exterior installations coverage limit | $2,500-$10,000 |
| Money and securities coverage limit | $1,000-$2,500 |
| Employee dishonesty coverage limit | $5,000-$10,000 |
| Credit card loss or damage coverage limit | $500-$1,500 |
| Water backup and sump overflow coverage limit | $5,000 |
Building a beauty salon or renovating a commercial space into one takes a lot of money. There are a lot of costs to account for such as labor, materials, interior decors, equipment, and others.
Protect your investments against the unexpected through commercial property insurance.
Commercial property insurance will help you recover lost money and get the flooring, roofing, siding, walls, or the entire building fixed if the beauty salon gets destroyed or damaged by:
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Fire
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Theft
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Civil commotion
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Vandalism
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Riot
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Malicious mischief
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Sprinkler leakage
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Smoke
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Sinkhole collapse
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Aircraft
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Vehicle
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Impact
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Lightning
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Rain
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Wind
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Snow
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Hail
Commercial property insurance also covers the valuables inside your beauty salon’s building such as employee personal effects, chairs, massage tables, tanning devices, hair dryers, computers, television, and others.
Though comprehensive and covers a wide range of situations that will result in business property damage or loss, commercial property insurance doesn’t protect your beauty salon against floods, earthquakes, mudslides, and landslides.
A rule of thumb: Always remember that commercial property insurance must provide a building and contents coverage equal to the replacement cost of your beauty salon’s building and personal property.
Equipment Breakdown Insurance for Beauty Salons
Commercial property insurance doesn’t usually cover the breakage of equipment. Because of this, consider getting equipment breakdown insurance for your beauty salon. Equipment breakdown insurance protects all items you use for a beauty service.
Typical items this insurance covers are seats, tables, wash bins, hair dryers, facial machines, electric massage chairs, blowers, carts, trolleys, brushes, scissors, razors, and hair styling stations. Use this insurance when beauty equipment becomes lost or damaged due to:
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Fire
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Theft
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Operator error
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Impact
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Electrical surge
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Electrical shorts
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Mysterious disappearance
Workers Compensation Insurance for Beauty Salons
The part-time and full-time employees of your beauty salon constantly face dangers.
For example, hair stylists might get burned while using hair straighteners, massage therapists can exhibit severe reactions to oils and lotions, and nail technicians can get cut or punctured by their nipper or pusher.
Protect employees and prevent them from suing you for work-related injuries or diseases by getting workers compensation insurance. Workers’ compensation insurance covers these costs on your behalf:
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Employee medical treatment costs and private EMT fees
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Hospital bills such as food, nursing, room, laboratory, etc.
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Prescription medicines
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Rehabilitation and retraining
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Lost wages
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Funeral expenses and allowance to dependents
Workers’ compensation insurance only covers the occupational disease or injury of part-time and full-time employees. It doesn’t automatically cover independent contractors, interns, and volunteers. Get these workers covered by naming them as additional insureds in your beauty salon’s workers’ compensation insurance.
Also, workers’ compensation insurance doesn’t have a set limit. The amount of coverage from this policy is provided by the worker’s comp law of the state where your beauty salon is registered.
Employer’s Liability Insurance for Beauty Salons
Limits Of Employer’s Liability Insurance for Beauty Salons
| Value | |
|---|---|
| Each employee injury by accident coverage limit | $1 million |
| Each employee injury by disease coverage limit | $1 million |
| Employee injury per policy limit | $1 million |
You will find employer’s liability insurance automatically included in the workers’ compensation insurance of your beauty salon. You can also add or exclude this from workers comp yourself.
Employer’s liability insurance helps to pay settlements, defense costs, and court judgments when an employee holds your beauty salon liable for a work-related injury or disease.
Ideally, your beauty salon must get an employer’s liability insurance offering $500,000 coverage for each employee injury by accident or disease.
Commercial Auto Insurance for Beauty Salons
We suggest you get commercial auto insurance if your beauty salon has its own commercial vehicle or if you use a van, bus, or truck as a mobile beauty salon.
Commercial auto insurance provides protection against the exposures associated with the use of a commercial vehicle. You can use this to:
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Cover the medical treatment or property damage of third parties who got involved in an accident caused by your van, bus, or truck
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Pay for vehicle repair expenses if your business’s van, bus, or truck got damaged due to collision, fire, theft, vandalism, hail, weather, and other covered perils
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Cover the medical treatment of the driver and passengers if the other driver who caused the accident can’t grant indemnification with his insurance policy
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Reimburse rental expenses if you need to hire a commercial vehicle for your beauty salon
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Cover the repair or replacement of equipment attached to your beauty salon’s vehicle
Inland Marine Insurance for Beauty Salons
Similar to commercial auto insurance, inland marine insurance isn’t very useful if you’re running a beauty salon in a commercial space. However, get this if you’re making money through a mobile beauty salon.
Inland marine insurance, unlike commercial property insurance, recovers your financial losses if business equipment gets damaged or lost during transit. Coverage applies on instances of theft, mysterious disappearance, malicious mischief, impact, and error.
While available as a stand-alone policy, you can get inland marine insurance as a rider to commercial property insurance or general liability insurance with a business equipment floater.
Home Beauty Salon Insurance
Home beauty salons are typically a lot more affordable to ensure than larger operations because home salons typically don’t have many employees.
This reduces the cost of insurance because the carrier is taking a smaller risk when you have a smaller operation. However, there are a few specifics to consider if you’re trying to get home beauty salon insurance.
Consider that your homeowners’ insurance policy won’t cover you during your business hours. The minute you start using your home for a commercial purpose, it is excluded from the vast majority of homeowner’s policies, so you’ll need to get separate commercial coverage on your own.
If you’re running a home beauty salon, get general liability insurance and professional liability insurance. Also, look for insurance companies that allow their commercial property insurance to cover home-based businesses.
Help others make better decisions
Beauty Salon Insurance Cost
Each insurance for your beauty salon has its own cost. Here’s a table showing the rates of general liability insurance, professional liability insurance, and others:
| Cost per Month | Cost per Year | |
|---|---|---|
| General liability insurance | $32 | $384 |
| Professional liability insurance | $41.16 | $493.92 |
| Workers compensation insurance | $56.25 | $675 |
| Business owner’s policy | $39.83 | $477.96 |
The average beauty salon insurance cost is about $32 per month or $384 per year for a $1 million general liability insurance policy. This estimate assumes that your beauty salon has 5 employees and generates $500,000-$750,000 per year.
Insurance companies have their own rates. That’s why the cost of premiums will also depend on which carrier insured your beauty salon. Here’s a table showing the rates of carriers worth trying:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $8 | $96 | Best overall; Fastest and cheapest general liability insurance for beauty salons |
| CoverWallet | $13 | $156 | Beauty salon insurance quotes comparison online |
| Tivly | $15 | $180 | Comparing beauty salon insurance quotes over the phone |
| Thimble | $20 | $240 | On-demand beauty salon insurance |
| Hiscox | $25 | $300 | General liability insurance with worldwide coverage for beauty salons |
Get all the best quotes from leading providers in a click of a button!
Best Beauty Salon Insurance Companies
Read some of the reviews below to know the best beauty salon insurance companies’ pros, cons, and rate for a $1 million general liability insurance
NEXT Beauty Salon Insurance
Pros
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Best overall
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Get an online proof of insurance and send as a text message, email, or social media post
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Fastest general liability insurance for beauty salons
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Great customer service and reputation
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Issues an online proof of insurance instantly
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Outstanding value for money
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Bundle two or more beauty salon insurance policies and get a 10% discount
Cons
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Couldn’t find any
NEXT covers your beauty salon through its beautician insurance. Policies you can get are general liability insurance, workers’ compensation insurance, professional liability insurance, and commercial property insurance.
Your general liability insurance from this company will have a $1 million per occurrence limit with a $2 million aggregate. Invest more in premiums to include a professional liability policy in the language of your general liability insurance. Policy limits will be $1 million per occurrence and $1 million aggregate.
Best for: Best overall; Fastest and cheapest general liability insurance for beauty salons
Average cost: $8 per month
Our rating: 10/10
CoverWallet Beauty Salon Insurance
Pros
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Compare beauty salon insurance quotes online
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Call and cancel your policy anytime
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Also sells beauty shop insurance
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Online payment of premiums and policy management
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No hidden charges
Cons
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Not an insurance company but an insurance broker
CoverWallet’s beauty salon insurance offers professional liability, workers’ compensation, and general liability insurance.
Your beauty salon’s general liability insurance from this company will have a $1 million per occurrence limit with a $2 million aggregate. You can add landlords, clients, and booth renters as additional insureds for free.
CoverWallet’s commercial property insurance provides $50,000 coverage for your beauty salon’s building and contents. Coverage for outdoor installations is excluded. Nonetheless, this is okay because business interruption insurance is included as an extra perk.
Best for: Beauty salon insurance quotes comparison online
Average cost: $13 per month
Our rating: 10/10
Tivly Beauty Salon Insurance
Pros
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A partner of reputable insurance companies
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Provides coverage for beauty salons with a poor business profile
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Responsive customer service
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Can refer you to partners if it can’t provide coverage
Cons
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You need to call to get a quote
Companies such as Thimble and NEXT will recommend calling Tivly (formerly CommercialInsurance.NET) if your beauty salon’s underwriting profile is poor. Policies you can get from this company are general liability, workers’ compensation, commercial property, commercial auto insurance, etc.
Call Tivly now and compare beauty salon insurance quotes over the phone
Best for: Comparing beauty salon insurance quotes over the phone
Average cost: $15 per month
Our rating: 10/10
Thimble Beauty Salon Insurance
Pros
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On demand beauty salon insurance
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You can insure your beauty salon for only hours, days, or weeks
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Commercial property insurance for beauty salons has a lot of perks
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Quick to issue an estimate of your rates
Cons
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You can only get commercial property insurance through a BOP
Thimble’s beauty salon insurance allows you to get a business owner’s policy and workers’ compensation insurance. The business owner’s policy of this company offers a general liability insurance with a $1 million per occurrence limit and a commercial property insurance providing $25,000-$500,000 coverage for your beauty salon’s building and contents.
Best for: On-demand beauty salon insurance
Average cost: $20 per month
Our rating: 9/10
Hiscox Beauty Salon Insurance
Pros
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Worldwide coverage
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Professional liability insurance covers contributory damages
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14-day money back guarantee
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Grants a discount if you bundle two or more beauty salon insurance policies
Cons
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Doesn’t offer a commercial property policy in its beauty salon insurance
Hiscox covers your beauty salon through its beautician insurance plan. Policies available are general liability, professional liability, and cyber liability insurance.
Hiscox’s general liability insurance for beauty salons has a $300,000-$2 million occurrence and aggregate limit. On the other hand, the aggregate and per occurrence limit of professional liability insurance is $250,000.
Best for: General liability insurance with worldwide coverage for beauty salons
Average cost: $25 per month
Our rating: 9/10
