Hair Salon Insurance: Cost, Coverage & Providers

In the United States, beauty salons are required to carry out business insurance. This type of insurance is designed to cover potential damages that could occur while a salon is in operation and also provides some liability protection for those who might be injured during your services.

General liability insurance is a type of insurance that protects against financial loss due to claims for bodily injury or property damage. The cost of general liability insurance will vary depending on the company, but it’s typically around $1,000 per year. Read more in detail here: how much is general liability insurance.

The business plans that salon, barbershop, and spa operators generally acquire are known as hair salon insurance. The most typical hair salon coverage is general liability, which covers claims of injury, property damage, or reputational loss caused by your company. Depending on how many covers you need, salon insurance might cost anywhere from $300 to $5,800 per year.

When it comes to insurance, hair salon operators need think about more than just the price. They should also seek for a financially stable carrier, like as The Hartford, that provides policies that cover their individual risks. Its team of professionals can assist you in choosing the appropriate coverage and tailoring it to your company’s needs and budget. In just a few minutes, you may get a no-obligation quotation.

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Costs of Salon Insurance

The cost of beauty salon insurance is mostly determined by the number of policies and coverage levels you choose. Only getting a business owner’s insurance (BOP) costs roughly $480 to $850 per year. However, since BOPs may not cover all of the hazards that salons encounter, many owners may choose to get supplementary insurance. Their overall insurance expenses might rise to $5,800 per year as a result of this.

Beauty Salon Insurance Costs & Deductibles by Policy

Although the number of policies and the level of coverage you need have a significant influence on your salon insurance costs, top salon insurers take other aspects into account when determining prices. These include aspects of your company, but policy selections also go into the cost of your beauty salon insurance. Most insurers, for example, want to know about the following:

• The way you conduct your organization has a significant influence on your expenses. Salons with tanning beds, for example, often pay a larger premium than those without.
• Because courts evaluate income when issuing judgements, salons with greater revenue frequently have higher liability insurance rates. This implies that insurers may have to pay more to cover these salons.
• Employees: Having more employees raises your chances of submitting claims for workers’ compensation, general liability, and commercial property.
• Deductibles: Choosing a larger deductible reduces your premium since you’re accepting more financial responsibility in the case of a claim.
• Coverage amount: Most plans let you to expand the coverage limits, but this will raise your total salon insurance expenses.
• Location: Certain areas may be more vulnerable to crime, bad weather, and floods, all of which may have an influence on your Property Insurance for Businesses cost.

While price is usually a consideration when choosing salon insurance, owners should also consider value. In the short term, getting the bare minimum in coverage may save money, but if you have to submit a claim, you may be underinsured.

Insurance Policies for Hair Salons

Insurance for General Liability

Insurance for General Liability covers third-party bodily injury, property damage, and advertising injury. This is a core coverage for salon owners because claims from third parties are a common risk. Also, general liability often is required for business licenses and commercial leases. Instances where general liability applies include:

• After slipping inside your salon, a customer’s medical bills
• Repair costs for a neighbor’s structure if a fire in your salon causes smoke damage.
• If a rival sues you for defamation, you’ll have to pay your legal fees.

Goods-completed operations coverage is often included in general liability policies to cover property damage and bodily harm caused by defective products or services. For example, if your salon is sued because the shampoo it sells causes clients’ hair to fall out, your general liability policy’s products-completed operations section will pay your legal fees.

Property Insurance for Businesses

Property Insurance for Businesses covers your business’s physical assets like your salon and the contents within it. Policies typically pay to repair or replace these assets when they’re damaged by certain events, such as fire, theft, vandalism, or windstorm. Salon owners should also look for a sewer backup endorsement. Most commercial property policies exclude damage caused by backup or overflow from sewers and drains, which can be a pretty big risk for hair salons.

Salons usually get commercial property bundled and Insurance for General Liability at a reduced rate by buying BOPs. Most BOPs also include business interruption coverage, which covers your lost income and ongoing expenses if your salon is forced to close because of a covered event.

Insurance for Workers’ Compensation

Insurance for Workers’ Compensation provides benefits to stylists, assistants, receptionists, and other employees of your hair salon when they suffer work-related injuries or illnesses. Coverage includes medical bills and lost wages and is required in most states when a business has one or more employees.

The extent of coverage is determined by state legislation, but common ailments covered by workers’ compensation include:

• Occupational illnesses, such as lung disease, are caused by inhaling harmful substances.
• After a fall, traumatic injuries such as a fractured wrist might occur.
• Carpal tunnel syndrome is a kind of repetitive stress injury caused by cutting hair.

Insurance for Professional Liability

Insurance for Professional Liability, also called errors and omissions (E&O) insurance, covers your legal fees if a client claims your negligence or mistake caused them financial harm. Whether their costs are your fault or not, Insurance for Professional Liability helps pay lawyer’s bills, court fees, and judgments or settlements.

Let’s imagine you dyed your client’s hair the incorrect color by mistake, and they claim they lost a modeling job as a result. Professional salon liability insurance will pay your legal costs if that customer files a lawsuit.

Coverage for Equipment Failure

Coverage for Equipment Failure pays for losses caused by mechanical failure of nearly any equipment, including heating, ventilation, and air conditioning (HVAC) systems; tanning beds; and computers. It can be purchased as a standalone policy or endorsed onto a property policy. Many salon owners assume their Property Insurance for Businesses covers these events, but that policy only pays for damage caused by external sources. Coverage for Equipment Failure pays for damage caused by internal sources like power surges and motor burnout.

Equipment breakdown insurance may be required by salon owners for machinery installed in their facilities. They’re most likely in charge of boiler and air conditioning maintenance at that time. Owners who rent space, on the other hand, often rely on expensive-to-repair equipment and may insure it.

Additional Insurance Policies for Hair Salons

Salon proprietors may need coverage in addition to the plans mentioned above. This is mostly determined by your company habits, such as whether you own the building where you operate or if you drive to meet with customers. The following are some of the most popular extra policies.

Insurance for Commercial Vehicles

Insurance for Commercial Vehicles covers repairs and related lawsuits when a vehicle used by your salon business is involved in an accident. Most states require a minimum amount of liability coverage for business-owned vehicles to pay for damage you cause others, but policies can also include coverage for damage to your cars and any vehicles your business rents, hires, or borrows.

What If I Told You…

Personal vehicle plans, like homeowner’s insurance, normally exclude business driving from coverage, so you’ll need commercial auto for any work-related journeys. Occasional excursions may be covered, but if driving your own car is a regular element of your operations, you may require a business coverage.

Umbrella Coverage

Unlike other policies, commercial Umbrella Coverage isn’t used to protect against a specific risk. Instead, it adds coverage when other liability policies are insufficient. For example, if your general liability limit is $1 million, but a lawsuit over a customer’s slip-and-fall costs $1.5 million, an umbrella policy pays the additional $500,000. Buying an umbrella policy is usually more cost-effective than adding coverage to your other liability insurance.

BOP

A BOP combines general liability and commercial property insurance into a single policy that covers the most frequent risks faced by companies. Acquiring a BOP is more easy and cost-effective for hair salon operators than getting both general liability and commercial property insurance individually.

Some company owners may choose to add business interruption as a rider to their BOP to protect themselves from lost revenue and continuing expenditures if a covered claim compels them to halt operations.

Insurance against commercial crime

Insurance against commercial crime covers financial losses stemming from illegal activities like check fraud, theft, and counterfeit money schemes. Most policies reimburse policyholders whether the criminals are employees or outside actors.

Salon owners often assume these financial losses are covered by Property Insurance for Businesses. Unfortunately, property policies often exclude employees’ actions and stolen money, so Insurance against commercial crime is essential for salon owners who have employees or typically have cash on hand.

Hair Salon Insurance Exclusions

Hair Salon Insurance protects salon, barbershop, and spa operators against the hazards they may face while working with their customers. However, some insurers may refuse to cover procedures that make your firm too dangerous for them to cover. These services do not rule out the possibility of coverage, but you may have to pay more or go to a surplus broker for liability coverage.

The following are some of the techniques that are not allowed since they are either new and unproven or invasive:

• Services for tanning
• Services for airbrushing
• Electrolysis
• Hair transplantation and implanting
• Services for eyelash dyeing or coloring
• Services of a massage therapist
• Services for red light therapy

Booth Renters’ Insurance for Hair Salons

Salon owners that rent their space to independent freelancers, referred known as “booth renters” in the industry, face extra insurance issues. In most circumstances, neither general liability nor professional liability insurance will cover independent contractors that operate in your salon, and you might be sued because of the activities of a booth renter.

Salon proprietors may pick from the following alternatives to assure complete protection:

1. Look for an insurance carrier that will cover booth renters.
2. Add their booth tenants as extra insureds to their liability coverage.
3. All booth renters should be required to have their own hairstylist liability insurance.

Despite ensuring that coverages are in place, options 1 and 2 will raise the salon owner’s liability insurance. Option 3 places the burden and expense of obtaining insurance on the contractor, but it is the salon owner’s obligation to ensure that the contractor obtains and maintains enough coverage.

Home-based hairstylists’ insurance

Most homeowner’s policies do not cover commercial operations, thus hairstylists who operate out of their homes would require hair salon insurance. For example, if a customer gets hurt at your house and accuses you of professional negligence, you may be forced to cover the expenses yourself. Getting a BOP may help you avoid this.

Conclusion

There are several sorts of salon companies, each with its own set of risks that must be addressed with the right insurance coverage. Speak with an insurance expert who can analyze your risk and get you a quotation from a reputable insurance provider to get a better sense of what beauty salon insurance plans you need.

The Hartford has a team of specialists that will work with you to determine your requirements and ensure that your salon is properly protected. In just a few minutes, you can get a free, no-obligation quotation online.

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There are many hair salon insurance options available. Some of these include best hair stylist insurance and the cost, coverage and providers.

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