Beauty Salon Insurance: Cost, Quotes & More

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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

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:

• A client demands your beauty salon to compensate her pain and suffering after the nail technician caused severe bleeding while removing an ingrown nail

• The massage therapist of your salon left a client’s body swollen and full of bruises

• 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

• 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:

• Medical treatments

• Refunds for damaged properties

• Settlements

• Attorney fees, court filing fees, and other defense costs

• 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:

• Claims for slander, libel, copyright infringement, invasion of privacy, and breach of confidentiality

• Claims for bodily injuries or property damage caused by a commercial vehicle your beauty salon hired or borrowed

• 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

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:

• A client files a claim and accuses your beauty salon of falsifying the portfolio and licenses of employees

• A client paid for more than the suggested cost of the service your beauty salon provided

• Your beauty salon shared the confidential information of a client to another party without consent

• An employee didn’t pay attention, failed to evaluate, or used the wrong products. Because of this, a client sustained severe injuries

• Your employee’s beauty salon didn’t heed to the instructions and gave the client a bad hairdo or makeup

Commercial Property Insurance for Beauty Salons 

Limits Of Commercial Property Insurance for Beauty Salons

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:

• Fire

• Theft

• Civil commotion 

• Vandalism

• Riot

• Malicious mischief

• Sprinkler leakage

• Smoke

• Sinkhole collapse

• Aircraft

• Vehicle

• Impact

• Lightning

• Rain

• Wind

• Snow

• 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:

• Fire

• Theft

• Operator error

• Impact

• Electrical surge

• Electrical shorts

• 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:

• Employee medical treatment costs and private EMT fees

• Hospital bills such as food, nursing, room, laboratory, etc. 

• Prescription medicines

• Rehabilitation and retraining

• Lost wages

• 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

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:

• Cover the medical treatment or property damage of third parties who got involved in an accident caused by your van, bus, or truck

• 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 

• 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 

• Reimburse rental expenses if you need to hire a commercial vehicle for your beauty salon

• 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. 

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:

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: