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.
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.
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
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:
Violation of fair dealing
Violation of good faith
Other acts considered errors and omissions
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.
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:
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.
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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.
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
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.
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.
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:
|Company||Cost per month||Cost per year||Best for|
|NEXT||$8.34||$100.8||Salons looking for a coverage with a very innovative proof of insurance|
|CoverWallet||$12.58||$150.96||Salon insurance quotes comparison online|
|Thimble||$19.77||$237.24||Salons looking for a comprehensive BOP with business interruption insurance|
|Hiscox||$22.50||$270||Salon insurance with worldwide coverage|
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.
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.
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 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.
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Here’s where we’ll get into our salon insurance comparison in which we’ll go over the top insurance carriers in the salon industry. Read the reviews below to know their pros, cons, and monthly rate for a $1 million general liability coverage.
Along with ensuring that you get the best service possible, picking the right company will make it easier to get a cheap salon insurance policy. To compare quotes online from all the best salon insurance companies, click the 'Get Quotes' button on this page and complete the simple form.
Get insured within minutes
Quotes show the accurate estimate of a customer’s rates
No hidden charges
Cancel a policy anytime
Provides your salon with certified acts of terrorism coverage
Not an insurance company but an insurance broker
CoverWallet has an online quotes comparison platform you can use to find carriers providing tailored coverage for salons. Note that you can buy quotes right then and there through CoverWallet. There’s no need to contact the specific insurance company providing a particular quote.
There are other perks with CoverWallet aside from comparing quotes. This company allows you to add landlords or clients as additional insureds. Moreover, you can pay premiums and get a certificate of insurance online. In case you’re having issues with your policy, CoverWallet’s customer service representatives are always reachable.
Best for: Salon insurance quotes comparison online
Average cost: $12.58 per month
Our rating: 10/10
Live certificate of insurance
10% discount when buying two or more insurance policies
Fast to process claims
Business insurance policies has custom dedicated limits
NEXT’s certificate of insurance doesn’t follow the ACORD 25 format and might not be accepted by some parties
NEXT offers general liability insurance having errors and omissions coverage for beauty salons. This means that there’s no need for you to purchase professional liability insurance upon working with this company. NEXT gives a live certificate of insurance, which you can send to anyone as a text message, email, or social media post. Furthermore, a 10% discount will be given if you decide to buy other business insurance policies from NEXT and bundle them with general liability insurance.
Best for: Salons looking for a coverage with a very innovative proof of insurance
Average cost: $8.34 per month
Our rating: 10/10
BOP has business interruption insurance
Fast online quotes
Pause or cancel your coverage anytime
You can’t reach Thimble’s customer service by calling
Thimble’s salon insurance is a long-term business owner’s policy providing you with general liability insurance, commercial property insurance, and business interruption insurance. You can choose to add non-owned/hired auto coverage and equipment breakdown insurance for additional protection. Note that Thimble’s general liability insurance provides $1 million up to $2 million coverage, and you can choose not to have any deductibles.
Best for: Salons looking for a comprehensive BOP with business interruption insurance
Average cost: $19.77 per month
Our rating: 9/10
Offers both professional and general liability
Quick claims responses
Poor customer reviews
Hiscox is a British insurance carrier that is an underwriter for Lloyd’s of London. Despite being based in England, the company typically offers worldwide coverage through their American branch, provided your claims are filed in either the United States or in Canada.
Hiscox offers coverage for salons under its Insurance for Beauty Professionals policy. Along with salons, this policy applies to hairdressers, nail techs, spa owners, and more. The two kinds of policies available through Hiscox are professional liability coverage and general liability coverage.
Best for: Salon insurance with worldwide coverage
Average cost: $22.50 per month
Our rating: 8/10
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!