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Whether you’re an independent hair stylist, salon owner, or barber, having the right insurance isn’t just smart – it’s essential. From accidental injuries to product mishaps, the beauty industry carries unique risks that can lead to costly lawsuits. This hair guide breaks down everything you need to know about hairstylist and hair salon insurance in the U.S., including coverage types, costs, top providers, and answers to common questions.
In the beauty business, even a minor incident can escalate quickly. A client slipping on a wet floor, a reaction to hair dye, or a styling mishap can result in legal claims. Insurance provides a safety net, covering legal fees, medical expenses, and damages, ensuring your business remains protected.
Operating a hair salon or working as a stylist involves various risks that can impact your business:
1. General Liability Insurance
Covers third-party claims for bodily injury, property damage, and personal injury. Hair stylist or salon liability insurance is essential for incidents like slips and falls in your salon.
Purpose: Protects against third-party claims of bodily injury, property damage, and personal injury.
Example: A client slips on a wet floor and sustains an injury; this policy covers medical expenses and legal fees.
Cost: Approximately $360 – $2,100 annually, depending on business size and location.
Read More: General Liability Insurance Cost
2. Professional Liability Insurance (Errors & Omissions)
Also known as Errors & Omissions (E&O) insurance, it protects against claims of negligence or mistakes in your professional services, such as a client experiencing hair damage after a treatment.
Purpose: Covers claims related to professional mistakes or negligence.
Example: A client experiences hair damage due to a chemical treatment; this policy covers legal defense and settlements.
Cost: Around $720 – $2,200 per year.
3. Product Liability Insurance
Protects against claims arising from products you use or sell, like a client having an allergic reaction to a shampoo you applied.
Purpose: Protects against claims from products sold or used that cause harm.
Example: A client has an allergic reaction to a shampoo sold by your salon; this policy covers related claims.
Cost: Often included in general or professional liability policies.
4. Commercial Property Insurance
Purpose: Covers damage to your salon’s physical assets due to events like fire, theft, or natural disasters.
Example: A fire damages salon equipment; this policy covers repair or replacement costs.
Cost: Varies based on property value and location.
5. Business Owner’s Policy (BOP)
Purpose: A bundled, comprehensive hair salon business insurance package, that typically includes general liability, business interruption and commercial property insurance, often at a reduced premium.
Example: Provides comprehensive coverage for both liability claims and property damage.
Cost: Typically $575 – $1,100 annually.
6. Workers’ Compensation Insurance
Mandatory in most states if you have employees.
Purpose: Covers medical expenses and lost wages for employees injured on the job.
Example: An employee develops carpal tunnel syndrome from repetitive tasks; this policy covers treatment and income replacement.
Cost: Ranges from $1,000 – $3,000+ per year, depending on staff size and state regulations.
Read More: Workers’ Compensation Insurance
7. Business Interruption Insurance
Purpose: Provides income replacement if your salon must close temporarily due to a covered event, like a fire or natural disaster.
Example: A flood forces your salon to close for repairs; this policy covers lost income during downtime.
Cost: Often bundled with BOPs; pricing varies.
Cyber Liability Insurance
Purpose: Protects against data breaches and cyberattacks.
Example: Client information is stolen from your salon’s database; this policy covers notification costs and legal fees.
Commercial Auto Insurance
Purpose: Covers vehicles used for business purposes.
Example: A stylist’s car used for mobile services is involved in an accident; this policy covers damages.
Umbrella Insurance
Purpose: Provides additional liability coverage beyond standard policy limits.
Example: A lawsuit exceeds your general liability coverage; umbrella insurance covers the excess amount.
While many types of coverage are optional, some are legally required depending on the state you operate in.
Workers’ Compensation Laws by State
In most U.S. states, once you hire even one employee, you’re legally required to carry workers’ compensation insurance. Here are a few examples:
Workers’ comp violations can result in hefty fines, business closure, and even criminal charges in some states.
To check your state’s requirements, visit your Department of Labor or Workers’ Compensation Board website.
Hair business insurance needs vary depending on how you operate.
If you rent a chair in a salon or work on the go, you’re running your own business – and you’re responsible for your own insurance. Even if the beauty or hair salon has a policy, it typically doesn’t cover you.
Must-have coverage includes:
Always ask the salon owner for proof of their insurance and confirm what (if anything) it covers for renters.
If you’re running a hair salon, you’re not just dealing with scissors and shampoo. You’re managing risks that come with working closely with people, expensive tools, real estate, and even chemicals. One slip, allergic reaction, or busted hair dryer can lead to serious expenses – or lawsuits.
Here’s a breakdown of the essential types of insurance every hair salon should consider:
1. General Liability Insurance
Covers injuries or property damage that happen to clients or third parties on your premises. For example, if a customer slips on spilled conditioner, this policy helps pay medical bills or legal fees.
This is usually the minimum required if you lease salon space - it’s the insurance most landlords will ask for.
2. Professional Liability Insurance (aka Malpractice or Errors & Omissions)
Protects you against claims related to your services. If a client says a treatment caused a chemical burn, hair loss, or even emotional distress from a botched dye job, this policy steps in.
Professional liability is especially important for colorists and stylists doing chemical treatments, where allergic reactions and skin sensitivity are common claim triggers.
3. Commercial Property Insurance
Covers damage or loss to your salon’s physical space, including furniture, mirrors, styling chairs, tools, and inventory. Whether it’s from a fire, theft, or storm – property insurance can help you recover faster.
4. Business Owner’s Policy (BOP)
A smart combo of general liability, commercial property insurance, and often business interruption coverage. A BOP is usually more affordable than buying policies separately and is ideal for most salon owners.
Business interruption coverage helps you recover lost income if you have to temporarily close due to a covered event like fire or storm damage.
5. Workers’ Compensation Insurance
If you have employees – even just one – you’re likely required by law in most states to carry workers’ comp. It covers work-related injuries and illnesses, from carpal tunnel to slips and falls.
Even if you only have part-time stylists or receptionists, this is essential. Getting caught without it can lead to heavy penalties and lawsuits.
6. Tools & Equipment Insurance
A must-have for high-end styling tools, chairs, shampoo units, and other salon gear. Often available as an add-on to a BOP or general liability policy.
Example: A flat iron fries mid-treatment and causes a minor fire—or your best blow dryer gets stolen from your locked salon. This coverage reimburses you for repair or replacement.
7. Commercial Auto Insurance (If You Offer Mobile Services)
If you or your team travels to clients’ homes (especially for weddings, events, etc.), your personal car insurance likely won’t cover you during business use. Commercial auto steps in here.
8. Cyber Liability Insurance
Salons often store client data like names, numbers, emails, and even credit card info. If your booking app or POS system gets hacked, cyber liability helps pay for recovery, notification, and potential legal fees.
| Insurance Type | What It Covers | Do You Need It? |
| General Liability | Third-party injuries & property damage | Yes – always |
| Professional Liability | Service-related claims (e.g. burns, bad dye jobs) | Yes – always |
| Commercial Property | Fire, theft, or damage to salon equipment & space | Yes – if you own/rent a location |
| Business Owner’s Policy | Combo of general + property + business interruption | Yes – cost-effective bundle |
| Workers’ Compensation | Injuries to employees | Yes – if you have employees |
| Tools & Equipment Coverage | Damage/theft of styling gear | Highly recommended |
| Commercial Auto | Business vehicle accidents | If you or staff drive for work |
| Cyber Liability | Data breaches, cyberattacks | Recommended if you store client data |
Mobile stylists – those who travel to clients’ homes, hotels, events, or work from home – still face liability and property risks.
Here’s what you need to consider:
Most homeowners’ insurance won’t cover business-related claims, even if you work out of your home.
Insurance policies don’t cover everything. Knowing the exclusions helps you avoid nasty surprises during claims.
Common exclusions in hair salon & stylist insurance policies:
Always read the exclusions and endorsements section of any policy before purchasing. If you’re unsure, ask your agent directly.
Sometimes, the standard policy won’t be enough. Here are valuable add-ons:
Hair salon insurance costs vary based on factors like location, services offered, number of employees, and coverage limits. Here’s a general breakdown:
Average Annual Premiums by Policy Type
| Insurance Type | Average Annual Cost | Coverage Details |
| General Liability | $360 – $2,100 | $1M per occurrence, $2M aggregate |
| Professional Liability | $720 – $2,200 | $1M per occurrence, $2M aggregate |
| Business Owner’s Policy (BOP) | $575 – $1,100 | Combines general liability and property insurance |
| Workers’ Compensation | $1,000 – $3,000+ | Varies by state and number of employees |
| Product Liability | Included in GL or PL | Often bundled with general or professional liability |
Note: These are average estimates; actual premiums may vary.
Several elements affect the cost of your hair salon insurance:
When shopping for policies, don’t just compare price – compare value.
Ask These Questions:
Request at least three quotes and use the same coverage limits across each to make apples-to-apples comparisons.
Some top insurers offer instant proof of insurance, so you can show it to landlords or licensing boards the same day you purchase.
Choosing the right insurer is crucial. Here are some of the top-rated providers for hair businesses:
| Provider | Best For | Key Coverages | Quote Type | Starting Cost | Get a Quote |
| NEXT Insurance | Best Overall | General liability, professional liability, tools, commercial property | Instant online | From $8/month | Get Quote |
| BBI | Best for solo stylists & mobile pros | General + professional liability, optional tools/cyber, no deductible | Instant online | $96/year flat | |
| The Hartford | Best for salon owners with employees | BOP (includes business income), workers’ comp, commercial property, liability | Agent or custom online | Varies | Get Quote |
| Hiscox | Best for liability-focused professionals | General & professional liability, international coverage | Instant online | From $13/month | |
| Thimble | Best for flexible, short-term coverage | On-demand general & professional liability, monthly/daily policies | Instant online | From $23/month | Get Quote |
| CoverWallet | Best for comparing multiple quotes | Varies by carrier (liability, property, BOP, cyber, workers’ comp) | Quote comparison tool | From $15/month | Get Quote |
| Progressive | Best for stylists with business vehicles | Commercial auto, liability, BOP | Online or via agent | From $14/month | |
| State Farm | Best for personal agent support | BOP, general liability, property, bundled personal insurance | Agent-only | Varies |
Best for: Best Overall – Ideal for barbers, hair stylists and salon owners who want fast, affordable, reliable, all-digital business insurance.
Why We Like NEXT:
NEXT is one of the few providers that specifically categorizes hairstylists and beauty professionals, so you’re not getting a generic policy.
Drawbacks:
Best For:
Best for: Comprehensive hair business insurance coverage for salon owners who are looking for tailored, robust, traditional coverage with business income protection.
Why We Like The Hartford:
The Hartford includes business income insurance in most of its BOPs, which can help replace lost income if your salon has to shut down temporarily due to a covered event.
Drawbacks:
Best For:
Best for: Independent hairstylists and mobile professionals who want fast, flexible, short-term coverage.
Why We Like Thimble:
If you’re a mobile hairstylist who works at events, weddings, or offers at-home services, Thimble’s short-term policies are hard to beat.
Drawbacks:
Best For Barbers & Hair Professionals That Are:
Best for: Barbers, hair stylists, hairdressers, beauty and hair salon owners who want to compare quotes from top insurers in one place.
Why We Like CoverWallet:
CoverWallet can bundle multiple policies into a Business Owner’s Policy (BOP), often at a nice 20-30% discount.
Drawbacks:
Best For:
Beauty & Bodywork Insurance (BBI)
Best for: Solo barbers, hairstylists, estheticians, and mobile beauty pros looking for affordable, industry-specific coverage.
Why We Like BBI:
BBI offers no deductible liability coverage, meaning you pay $0 out of pocket if a claim is covered. Rare at this price point.
Drawbacks:
Best For:
Best for: Hair professionals who want specialized hair stylist/salon liability insurance coverage and those who need international coverage.
Why We Like Hiscox:
Hiscox’s errors & omissions coverage includes allegations of negligence - even if you did nothing wrong.
Drawbacks:
Best For:
Best for: Barbers and hairdressers who need commercial auto in addition to hair stylist liability or hair salon insurance coverage.
Why We Like Progressive:
Progressive is one of the top commercial auto insurers in the U.S. - perfect for mobile hairstylists and barbers who drive to clients.
Drawbacks:
Best For:
Best for: Hair stylists, barbers and businesses who prefer face-to-face service and long-standing brand trust.
Why We Like State Farm:
State Farm agents often tailor policies more flexibly if you’re in a mixed-use space or rent your chair.
Drawbacks:
Best For:
At a minimum, general liability and professional liability insurance are recommended. Tools & Equipment coverage will also be useful for you. If you sell products, consider product liability coverage. Mobile hairstylists that use their cars to get to their customers will also need commercial auto insurance. And if you plan to employ staff, then workers' compensation is required as well in most states in the U.S.
Costs vary and you can read in more detail in the section we dedicated to it, but general liability insurance averages $360 - $2,100 annually. And a BOP, which includes property coverage, ranges from $575 - $1,100 per year.
While not always legally required, many landlords and clients expect proof of insurance. Workers’ compensation is mandatory if you have employees.
Yes, many insurers offer policies tailored for home-based businesses, covering both liability and property.
Absolutely. Providers like BBI and NEXT Insurance offer policies specifically for mobile professionals.
Getting coverage is just the start. Here’s what to do next:
The beauty business is full of creativity, connection, and confidence – but it’s not without risk. The right insurance policy turns what could be a business-ending incident into a manageable hiccup.
Whether you’re a solo hairstylist, mobile pro, barber shop owner or hair salon owner with staff, having coverage tailored to your setup is one of the smartest business moves you can make.
Now’s the time to protect your passion. Get a quote, compare top providers, and give your business the coverage it deserves.
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