Cosmetology Insurance & Cosmetologist Liability Insurance

Cosmetologist insurance is a specialized insurance plan that offers professional liability, general liability, workers’ compensation, commercial property, and other policies. Get this if you’re a cosmetologist who owns a clinic, renting a booth, or working at a beauty establishment. Read this guide to know:

  • The function and limits of the different types of cosmetology insurance policies

  • The cost of premiums

  • Recommended insurance companies for a comprehensive coverage

Cosmetology Liability Insurance

Limits Of General Liability Insurance for Cosmetologists 

General liability insurance per occurrence limit  $2 million 
General liability insurance aggregate limit  $3 million
Products and completed operations coverage limit  $2 million 
Advertising injury coverage limit  $2 million 
Rented premises liability coverage limit  $100,000
Stolen equipment floater coverage limit  $1,000

Accidents can happen in your employer’s beauty establishment or the cosmetology clinic you own. Consider getting a $2 million cosmetologist liability insurance as a countermeasure. 

You must get general liability insurance as a salon booth renter. No landlord will sign the rental agreement if you’re not covered. 

General liability insurance for cosmetologists covers costs if clients, vendors, independent contractors, and other third parties sustain injuries or property damage because of your business. This is useful when:

  • An independent contractor gets electrocuted and falls from a height while installing signage or lighting for your cosmetology clinic

  • You spilled dye over a client’s expensive clothing

  • Your beauty equipment caught fire, and the booth you’re renting sustains damage 

  • Your chair is defective. It slumped to the floor, and the person sitting on it sustained a broken hip

  • Your hair trimmer went haywire and inflicted the client’s scalp with cuts and burns

You use general liability insurance to cover these costs each time a third party files a claim for bodily injuries or property damage:

  • Medical treatments

  • Refunds for property damage

  • Settlements for pain, suffering, and property loss 

  • Defense costs 

  • Compensation for punitive damages 

Cosmetologist liability insurance comes with an equipment floater that covers replacements or repairs if carts, hair trimmers, scissor kits, and other equipment get lost or damaged because of theft. 

General liability insurance doesn’t only protect you against claims for bodily injuries, property damage, or equipment theft. This policy is very broad and will also take care of other exposures, such as:

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

  • Claims filed by the landlord because you damaged his or her commercial space

  • Auto accidents that a vehicle you hired or borrowed caused 

  • Claims for bodily injuries or property damage because of a treatment or procedure you delivered

Cosmetologist Professional Liability Insurance

Limits Of Professional Liability Insurance for Cosmetologists

Professional liability insurance per occurrence limit  $2 million
Professional liability insurance aggregate limit  $3 million
Deductible $500-$1,000

You need $1 million-$2 million professional liability insurance for cosmetologist. While not a licensing requirement, get professional liability insurance, as most spas or salons will look for this before hiring you as an independent contractor. 

Also called malpractice insurance, professional liability insurance kicks in if you commit errors and oversights while tending to a client’s hair, giving facial and exfoliation treatments, etc. Use this insurance when:

  • A client sues for $180,000 because your  services caused hair loss and scalp burns 

  • You used the wrong exfoliator. The client sustained rashes and burns on her face

  • The client files a claim after a waxing treatment left ugly marks on her skin

  • Your cosmetology service allegedly caused bacterial infection due to poorly maintained beauty equipment

  • You failed to assess bodily conditions, and the client experienced significant pain and suffering during a wrinkle removal procedure

Every time you face a claim for negligence, oversights, malpractice, violation of good faith, violation of fair dealing, inaccurate advice, and breach of confidentiality, professional liability insurance will take care of these costs:

  • Settlements

  • Defense costs

  • Court judgments

Your professional liability insurance can take care of other things. For one, the policy can cover business interruption or income loss because you have to take part in an investigation or attend court. 

Professional liability insurance might even cover the cost of proceedings for the cancellation of a license. This is the reason why massage salons, hairdressing salons, nail salons, makeup salons, skin care clinics, microblading clinics, and other beauty businesses get this policy.

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Commercial Property Insurance for Cosmetologists 

Limits Of Commercial Property Insurance for Cosmetologists

Building coverage limit  $15,000-$300,000
Contents coverage limit  $10,000-$150,000
Credit card loss or damage coverage limit  $2,000
Money and securities coverage limit  $5,000
Coverage limit for valuable papers and records $2,500
Accounts receivable coverage limit  $25,000-$250,000
Employee dishonesty (with ERISA) coverage limit  $10,000-$100,000

Commercial property insurance is useful if you own a cosmetology clinic or renting one. This is not very useful if you’re just renting a booth. But note that the landlord might require you to get commercial property insurance and name him or her as an additional insured. 

Commercial property insurance reimburses your financial losses if your cosmetology clinic or booth gets damaged or destroyed. Coverage only applies if damaged or destruction is caused by:

  • Fire

  • Theft

  • Vandalism

  • Civil commotion

  • Riot

  • Malicious mischief

  • Sinkhole collapse

  • Volcanic action

  • Impact

  • Aircraft

  • Vehicle

  • Rain

  • Winds

  • Snow

  • Hail

  • Lightning

  • Sprinkler leakage

  • Smoke

Commercial property insurance for cosmetologists doesn’t only cover the building or booth but also your personal property. And so, this insurance can recover your losses if beauty equipment, chairs, tables, tablets, cash, credit cards, key and locks, and other valuables get damaged or lost. 

Remember this; Without any endorsements, commercial property insurance doesn’t cover the loss or damage of business property due to mudslides, landslides, floods, earthquakes, and wars. Also, this policy excludes business personal property in transit.

Business Interruption Insurance for Cosmetologists 

Your commercial property insurance might come with business interruption insurance. This policy applies if you can’t provide services and generate income because:

  • Your building or booth needs to be repaired after getting damaged by fire, hail, wind, lightning, vandalism, or theft

  • You have to relocate

  • An economic crisis occurs, and you have to stop operations

Business interruption insurance supplements your lost revenues for 30-360 days. You can use the money to cover these costs:

  • Bills for electricity, water, and utility services

  • Employee wages

  • Loans

  • Taxes

  • Mortgage

  • Equipment rental and other costs to relocate

  • Rent or lease payments 

Equipment Breakdown Insurance for Cosmetologists

Beauty equipment is essential in your work as a cosmetologist. It’s impossible to provide quality service without chairs, hair trimmers, facial machines, electric massage devices, hair dryers, and other tools. 

Get $2,500-$10,000 equipment breakdown insurance to avoid losing money and mitigate losses if such beauty equipment breaks down. Equipment breakdown insurance for cosmetologists covers repair or replacement costs if the tools you use get damaged or lost due to:

  • Operator error

  • Impact

  • Electrical shorts

  • Electrical surge

  • Mechanical breakdown

  • Mysterious disappearance

Important note: Equipment breakdown insurance doesn’t cover normal wear and tear.

Commercial Auto Insurance for Cosmetologists 

Limits Of Commercial Auto Insurance for Cosmetologists

Auto liability coverage limit  $25,000 per person
$50,000 per accident
$25,000 per property damage
Uninsured motorist coverage limit  $25,000 per person
$50,000 per accident
Underinsured motorist coverage limit  $25,000 per person
$50,000 per accident
Medical payments coverage limit $5,000
Rental reimbursement coverage limit  $30 per day
$1,800 max

Commercial auto insurance isn’t a very popular protection among cosmetologists who own a clinic, rent a booth, or work for a beauty establishment. But consider this if you’re a mobile cosmetologist. 

Purchase commercial auto insurance as a countermeasure if something happens while you’re driving the vehicle for commercial purposes. This insurance functions to:

  • Cover the medical treatment and property damage of victims if you cause a vehicular accident 

  • Mitigate the cost of repair or maintenance if the car you use as a mobile cosmetologist sustains damage due to fire, theft, vandalism, collisions, and other covered perils

  • Reimburse vehicle rental or public transportation fees while your commercial vehicle is being repaired

  • Cover your medical treatment if the driver who caused the accident can’t grant indemnification

By default, commercial property insurance doesn’t cover trailers and other equipment attached to your commercial vehicle. Solve this by adding a trailer and equipment floater to your commercial auto insurance. 

Workers Compensation Insurance for Cosmetologists 

Purchase worker’s compensation insurance if your cosmetology clinic has one or more part-time and full-time employees. Failure to get this will result in a fine, imprisonment, or a cease and desist order. 

If you’re just renting a booth and working solo, you don’t need workers’ compensation insurance. But we suggest you reconsider. Having workers comp is handy, especially if you don’t have health insurance. 

Workers’ compensation insurance kicks in when you or an employee sustains rashes, cuts, burns, infections, bloodborne diseases, and other inflictions because of work. This insurance will cover:

  • First aid treatment, private EMT services, surgeries, therapies, and other medical costs

  • Hospital bills for food, laboratory, nursing, imaging, observation, and others

  • Prescription medicines

  • After-hospital visits and public transportation expenses 

  • Rehabilitation and retraining

  • Lost wages 

  • Funeral costs

  • Allowance to dependents 

Workers’ compensation insurance doesn’t automatically cover independent contractors, volunteers, or interns working for you. Coverage only applies if you name these entities as additional insureds for free or at a cost. 

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Cosmetology Insurance Cost 

Cost per Month Cost per Year
General liability insurance $33 $396
Professional liability insurance $55 $660
Commercial property insurance $45 $540
Workers compensation insurance $73.83 $885.96
Business owner’s policy $52 $624
Commercial auto insurance $80.62 $967.44

General liability insurance for cosmetologists costs $33 per month or $396 per year for a $1 million coverage. This cosmetology insurance cost estimate assumes that you have 5 employees and generate $500,000-$750,000 per year. Get cheap cosmetology insurance by:

  • Keeping your certificates and portfolios up to date

  • Joining cosmetology organizations recognized by state licensing boards

  • Paying higher deductibles

  • Bundling two or more insurance policies

Insurance companies charge differently. Here’s a table showing the rates of the recommended carriers that allow you to get a cosmetology insurance quote online:

Cost per Month Cost per Year Best for
NEXT $17 $204 Best overall; Fastest general liability insurance for cosmetologists
CoverWallet $20 $240 Cosmetology insurance quotes comparison online
Tivly  $22 $264 Comparing cosmetology insurance quotes over the phone
Thimble $24.13 $289.56 On-demand cosmetology insurance policies
Hiscox $26 $312 Larger cosmetology businesses
NACAMS $27.66 $331.92 New cosmetology businesses
Beauty And Bodywork $28.33 $339.96 $3 million general liability and professional liability insurance with no deductibles
Geico $30 $360 Beauty businesses that provide a broader spectrum of services other than cosmetology

Compare Cosmetologist Insurance Quotes

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Best Cosmetology Insurance Companies

Before you decide to go out and get a cosmetology insurance quote, you’ll have to know a thing or two about the companies that you can expect to work with. We’re going to examine the top companies allegedly offering the best cosmetology insurance. Read our reviews to know their pros, cons, and rate for a $1 million general liability coverage.

Next Cosmetology Insurance


  • Best overall

  • Get an online proof of insurance and send as a text message, email, or social media post

  • Fastest general liability insurance for cosmetologists

  • Great customer service and reputation

  • Issues an online proof of insurance instantly

  • Outstanding value for money

  • Bundle two or more cosmetology insurance policies and get a 10% discount


  • Couldn’t find any

Next’s cosmetology insurance has general liability, professional liability, commercial auto, and commercial property insurance as inclusions. Once you purchase your coverage, you can get a live certificate of insurance and add additional insureds yourself anytime. By the way, we suggest you buy two or more business insurance from Next to enjoy a 10% discount on premiums.

Best for: Best overall; Fastest general liability insurance for cosmetologists 

Average cost: $17 per month

Our rating: 10/10


CoverWallet Cosmetology Insurance


  • Stable rates

  • Online quotes

  • Get insured online

  • Cancel a policy anytime

  • Compare cosmetology insurance quotes online 


  • CoverWallet doesn’t underwrite its business insurance for cosmetologists

Coverwallet’s cosmetology insurance provides you with four insurance options-general liability only, general liability and commercial property insurance, a BOP with professional liability insurance, and a custom plan.

This insurance company has an online quotes comparison platform you can use to find other companies selling tailored coverage for cosmetologists. Cosmetologist insurance quotes you’ll receive show the accurate offers and rates of different carriers.

Choose to work with CoverWallet because this insurance company insures you online. You can also pay premiums through different digital channels. Moreover, you can choose to add landlords and clients as additional insureds to your policy.

Best for: Cosmetology insurance quotes comparison online

Average cost: $20 per month

Our rating: 10/10

Tivly Cosmetology Insurance


  • Responsive customer service

  • Compare cosmetology insurance quotes over the phone

  • A partner of reputable insurance companies 


  • You need to call to get a quote 

Tivly (formerly CommercialInsurance.NET) offers general liability insurance, commercial property insurance, workers compensation insurance, and more. A representative will help create a customized insurance plan for your business. 

Call Tivly now and compare cosmetology insurance quotes over the phone. 

Best for: Comparing cosmetology insurance quotes over the phone

Average cost: $22 per month

Our rating: 10/10


Beauty And Bodywork Cosmetology Insurance


  • You can include add-ons for a more comprehensive protection

  • Student rate and professional rate

  • $3 million aggregate for liability coverage


  • Add-ons are too costly

Beauty And Bodywork is a risk purchasing group that requires membership before you can get your insurance coverage through them. The parent company of Beauty And Bodywork is Veracity Insurance Solutions, which works with the Great American Insurance Company to give members great rates.

Beauty And Bodywork’s tailored coverage features general and professional liability insurance as well as products and completed operations insurance. It features a limit of $3 million per occurrence as well as $300,000 coverage for any damage to premises rented to you.

Best for: $3 million general liability and professional liability insurance with no deductibles

Average cost: $28.33 per month

Our rating: 10/10


Thimble Cosmetology Insurance


  • Get insured online

  • Pause or cancel your coverage anytime


  • Customer service doesn’t have a phone number

Thimble’s cosmetology insurance is available as an annual or short-term policy. When availed as a short-term policy, you can choose to get covered for only hours, days, weeks, or months. Inclusions are general liability insurance and commercial property insurance only.

Best for: On-demand cosmetology insurance policies

Average cost: $24.13 per month

Our rating: 9/10


NACAMS Cosmetology Insurance


  • Different rates for pros and students

  • $1,000 in stolen equipment coverage


  • Not an actual carrier

Unlike the last company, NACAMS isn’t exactly an insurance carrier, but rather a risk purchasing group. This means that it’s an association of people who share similar risks and purchase insurance together for a preferential rate..

NACAMS offers different rates for students and for professionals, but all of their policies share the same kind of coverage. Every NACAMS cosmetology insurance policy comes with both professional and general liability insurance with a limit of $3 million aggregate and $2 million per occurrence.

Best for: New cosmetology businesses

Average cost: $27.66 per month for a two-year liability insurance

Our rating: 9/10

Hiscox Cosmetology Insurance


  • Worldwide coverage

  • Claims responsiveness

  • Monthly payments with no extra fees


  • Poor customer reviews

Hiscox is a British insurance company that has been in operation for over 100 years, acting as an underwriter for Lloyd’s of London. While this company started off in the marine insurance space, Hiscox has since transitioned to niche forms of insurance that other companies may not offer directly.

Hiscox offers malpractice and general liability coverage for professionals in the cosmetology space, and the best thing is that it provides worldwide coverage. As long as you file a claim in the US or Canada, you’ll be covered anywhere in the world with your Hiscox cosmetology insurance policy.

Best for: Larger cosmetology businesses

Average cost: $26 per month

Our rating: 8/10


GEICO Cosmetology Insurance


  • Easy quote process

  • Good customer service


  • No tailored add-ons for cosmetologists

GEICO has existed since the 1930s when it was founded as the Government Employees Insurance Company, and it’s one of the largest auto insurance companies in the United States. Along with its auto insurance policies, Geico also offers business and property insurance to a wide range of clients.

Best for: Beauty businesses that provide a broader spectrum of services other than cosmetology

Average cost: $30 per month

Our rating: 8/10

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