Salon Insurance: Quotes Comparison & More

There are countless kinds of beauty salon businesses, ranging from beauty salons, through tanning salons and hair salons to nail salons , and every one of them needs insurance to have a shield against litigation or other risks. Salon insurance is relatively simple to get your hands on, but getting a good price and the right policy is a different matter altogether.

In today’s guide, we’ll take a look at the different salon business insurance policies. We’ll also review the best salon insurance companies and discuss the factors that will influence how much you pay for your insurance policy. 

Also read:

• Salon Chair & Booth Rental Insurance: Cost & Quotes from $7
  

Liability Insurance for Salon

Liability coverage is one of the most popular forms of salon insurance for salon owners because it covers most of the common risks that could send a business into a dire financial position. Liability insurance for salon typically applies when you are sued by someone and held liable for their losses.

These expenses can include property damage that the individual suffered while they were at your place of business and also bodily injuries that may have occurred while you were working with them. There are different kinds of liability coverage, ranging from general liability to professional liability.

Salon General Liability Insurance

General liability insurance is a very common business insurance coverage. This isn’t only available for salons but also estheticians, massage therapists, and makeup artists. You’re protected against the following perils by having general liability insurance with public liability coverage as an automatic add-on:

• Third-party personal injury claims-Accidents will happen in your salon. Customers or any other third parties might slip and fall while on your business premises and sustain fractures or lacerations. When they file a claim and demand payment for injuries, general liability insurance provides the money you can use to cover expenses 

• Third-party property damage claims-General liability insurance will reimburse the value of any property owned by third parties, which your salon damaged or destroyed

• Legal expenses-You can use general insurance to mitigate financial losses if ever you need legal defense in property damage and personal injury claims. Particularly, what’s commonly covered are attorney fees, administrative costs, and compensatory payments to aggrieved third parties 

The general liability insurance for your salon can be added with optional coverages. Optional coverages allow general liability insurance to cover other types of claims third parties will file. The bullet below shows what these optional coverages are as well as their function:

• Advertising injury coverage-Advertising injury coverage will cover attorney fees, administrative costs, settlements, and other legal expenses if your salon is sued for slander, libel, copyright infringement, and other related offenses 

• Products and completed operations coverage-Products and completed operations coverage will cover expenses if a customer sustains property damage or personal injuries due to a service your salon delivered 

Professional Liability Insurance for Salons

You and your salon’s employees observe the highest level of precaution when providing a service to a client.  But still, mistakes can happen and a client will surely sustain economic or financial losses. 

Professional liability insurance will provide a shield when a client sues your salon for economic or financial losses. Usually, this insurance kicks in when your salon committed or allegedly committed the following:

• Negligence

• Inaccurate advice

• Misrepresentation

• Miss deadlines

• Violation of fair dealing

• Violation of good faith

• Other acts considered errors and omissions

Note that your salon isn’t the only one that finds professional liability insurance useful; cosmetologists, spas, and other related businesses need this coverage too. 

Another thing, professional liability insurance is underwritten in two ways. You can get it as a claims-made policy or occurrence policy. Here’s the difference between the two:

• Claims-made professional liability insurance-A claims-made professional liability insurance will only help if it's active when the covered peril happened and a claim is filed 

• Occurrence professional liability insurance-An occurrence professional liability insurance provides coverage regardless if it's active or not active when a covered peril happened and a claim is filed 

Claims made and occurrence professional liability insurance have their own advantages and disadvantages. And so, it’s best to consult with experts to figure out which of the two best suits your needs. 

Salon Product Liability Insurance

We suggest you get product liability insurance if your salon sells beauty products to customers. It will be very problematic if the product a customer bought caused allergies or burns. Product liability insurance takes care of this problem for you. With this salon professional insurance, you can compensate the customer and pay for administrative costs, attorney fees, and other legal expenses because the product sold has:

• Manufacturing defects

• Design defects

• Labeling errors

Liability Insurance for Salon Booth Renters

Not all salon workers own their own space, and many independent professionals rent out booths so they can more easily provide their services. These beauty professionals typically get salon booth renters insurance in the form of general liability insurance with rented premises liability coverage to ensure that they never end up on the receiving end of a devastating lawsuit.

This kind of salon and spa insurance tends to be a lot more affordable because a single booth will likely see fewer clients than an entire beauty salon. This cuts down on the risk that the insurance company has to shoulder because there’s a lower chance of them ending up having to pay out.

So what does general liability insurance with rented premises liability coverage do? Aside from personal injury claims and property damage claims, general liability insurance with rented premises liability coverage will help if you’re renting a salon booth and this salon booth becomes damaged due to fire. Specifically, it allows you to refund the losses of the owner. 

Commercial Property Insurance for Salons 

Do you own your salon? If so, it’s smart to get commercial property insurance. Commercial property insurance will cover expenses should something bad happen to your salon. Particularly, coverage applies to:

• Building damage-  Fire, extreme weather, theft, vandalism, and other perils will damage your salon’s roofing, windows, flooring, signage, and other structures. In connection, commercial property insurance provides the money you can use to have these fixed or replaced 

• Building destruction-Your salon will get destroyed by fire or extreme weather. In this situation, commercial property insurance will provide the money you can use to pay for reconstruction expenses

Salon commercial property insurance comes with additional inclusions. These additional inclusions are:

• Stocks and contents coverage-Stocks and salon contents insurance will recoup losses if the products your salon is selling as well as furniture, fixtures, and other valuable items become damaged or lost due to fire, theft, vandalism, extreme weather, and other covered perils 

• Equipment and tools coverage-Equipment and tools coverage will recoup losses if fire, theft, vandalism, extreme weather, and other covered perils cause the damage or destruction of hood dryers, heat lamps, blow dryers, hair straighteners, and other equipment in your salon

Understand that commercial property insurance doesn’t provide automatic coverage for all of your salon’s tangible assets. Coverage applies only to tangible business assets named on its terms. When purchasing commercial property insurance, it’s a good practice to first think about the assets that really need insurance coverage. 

Salon Workers Compensation Insurance

Authorities will require you to purchase workers' compensation insurance as soon as one or more employees are working in the salon. Workers' compensation insurance takes care of the following expenses when an employee sustains a work-related injury or disease:

• Medical treatments/procedures-Your salon’s employees will sustain cuts, lacerations, burns, and other injuries. If not injuries, then they will catch a disease. Workers' compensation insurance sees to it that you can get an employee treated by covering surgeries, therapies, and other medical treatments/procedures 

• Hospitalization-Workers compensation insurance will take care of bills if your employee is hospitalized for days, weeks, or months due to a work-related injury or disease 

• Medication-The physician will prescribe medicines to your employee who sustained a work-related injury or disease. In this case, workers' compensation insurance will provide the money to be used for buying the medicines 

• Rehabilitation-Workers compensation insurance will cover rehabilitation if your employee needs it to fully recover from a work-related injury or disease

• Lost income compensation-You can use workers' compensation insurance to cover the lost wages of an injured or sick employee. Coverage for lost wages is a weekly allowance equal to two-thirds or 67% of the average weekly wage. That said, if your employee makes $1,200 per week, compensation for lost income will be $804

• Death benefits-Your salon’s employee can die from a work-related injury or disease. If this does happen, workers' compensation insurance will cover funeral expenses. It will also provide cash assistance to dependents 

Mobile Salon Insurance

Yet another form of salon business insurance is mobile salon insurance, and this applies to beauty professionals that travel to customers to do their jobs. Mobile salons are growing more and more popular because they’re typically a bit more affordable to run than a static business.

Mobile salon insurance has general liability insurance,  commercial auto insurance and equipment in transit insurance as inclusions. 

As said earlier, general liability insurance covers personal injury claims and property damage claims.

Commercial auto insurance provides coverage to the car you’re using as a mobile salon and the legal liability associated with using it. The following are the common inclusions in commercial auto insurance for mobile salons:

• Auto liability coverage-Auto liability coverage will provide help when the vehicle you’re using as a mobile salon causes an accident and injures third parties or damages properties. It will cover medical expenses of the persons injured and provide reimbursements for properties that got damaged

• Physical damage coverage-Physical damage coverage covers expenses if the vehicle you’re using as a mobile salon becomes damaged. This is available as a collision or comprehensive coverage. Comprehensive physical damage coverage will cover parts repair or replacement if the commercial vehicle sustains damage due to fire, theft, vandalism, and other covered perils. On the other hand, collision physical damage coverage will take care of parts repair or replacement costs if the commercial vehicle incurred damage after colliding with a car or object 

• Medical payments/personal injury protection-Medical payments coverage will cover your medical or funeral expenses if the vehicle you’re using as a mobile salon causes an accident or gets involved in an accident. Personal injury protection is the same but provides additional coverage for after-hospital visits, medication, lost wages, rehabilitation, and more

Auto liability coverage, medical payments, and personal injury protection are state-required insurance policies for your mobile salon. Physical damage coverage is optional. 

Now let’s talk about equipment in transit insurance. Equipment in transit insurance will recoup losses if the equipment inside your mobile salon becomes damaged or lost during the trip due to malicious mischief, a vehicular accident, fire, and other covered perils. 

If you already have a car, running a mobile salon is a matter of having all of the right beauty supplies as well as the training to use them properly. If you compare salon insurance types, you’ll find that mobile salon coverage is a little more expensive.

Home Salon Insurance

If you’re trying to insure a home salon, you’ll need to get commercial property insurance along with your liability coverage. Don’t make the mistake of assuming that your homeowners or renters policy will cover you if you’re working from home because that tends to be an exclusion in the vast majority of policies.

Salon Insurance Cost

The cost of salon insurance depends on a wide range of different factors, including the size of your salon. A larger salon will have more expensive insurance because more clients increase the chance of someone filing a lawsuit against you for damages that they sustained while working with you.

Aside from that, your salon’s history and reputation will be closely examined by the insurance company, so if you have a history of mistakes or accidents, you may have a much higher premium.

The average salon insurance cost is about $15.80 per month or $189.60 per year for a general liability insurance having $1 million coverage. Here are some salon insurance quotes we’ve gathered from leading insurers:

Beauty Salon Insurance

There are all kinds of beauty salon insurance including coverage for hair salons, nail salons, and even tanning salons. While there are many similarities between each of these businesses, there are also some key differences that make the insurance procurement process a little different for each of them.

Insurance for Hair Salon

Hair salon insurance tends to be relatively pricey because of the risks inherent in working on a client’s hair. Along with the risk of cuts from scissors or razors, there is also a risk that clients will get themselves burned by hair irons or other hot objects while their hair is being worked on.

Insurance for Nail Salon

Nail salon insurance is usually more affordable than other kinds of salon insurance because there’s less of a risk of someone getting hurt while their nails are being done. While there’s still a pretty small chance that someone will get cut while their nails are being worked on, it’s pretty insignificant.

Tanning Salon Insurance

Tanning salon insurance is generally pricey because of the risks that exist in the tanning industry. UV light has been proven to cause cancer, and tanning beds can be relatively dangerous if they’re not maintained and kept in proper working order, so insurers generally have higher premiums in this industry.