Owning and operating a beauty salon can be a rewarding and fulfilling career. However, it also comes with inherent risks that can lead to financial loss and potential legal liabilities. This is why it’s essential for beauty salon owners to invest in insurance coverage that protects their businesses and assets. In this article, we’ll explore the various types of beauty salon insurance, factors that influence insurance costs, and the best insurance companies that offer coverage for beauty salons.
How much does beauty salon insurance cost?
The average cost of a comprehensive beauty salon insurance policy is $195 per month. The policy includes general liability, professional liability, and commercial property coverage. These are the 3 most popular coverage that any beauty salon may need.
Below are the average costs of each coverage in a beauty salon insurance policy:
|Beauty salon insurance coverage||Average costs|
|General liability insurance||$50 per month|
|Professional liability insurance||$35 per month|
|Commercial property insurance||$110 per month|
Keep in mind that these are just the average costs. Your rates will be different. The best way to find the cheapest quotes for your salon business is to get quotes from a few companies or work with a top broker like Simply Business and Smart Financial to compare several quotes.
Beauty salon insurance quote: What factors to consider
When obtaining a beauty salon insurance quote, there are several important factors to consider. Here are some things you should pay attention to:
The coverage limit is the maximum amount an insurance company will pay out for a claim. It’s important to make sure the coverage limits in your quote are adequate to cover potential losses your salon may face. Be sure to carefully review the coverage limits for each type of insurance included in the quote.
A deductible is the amount you must pay out of pocket before your insurance coverage kicks in. Lower deductibles typically result in higher premiums, so it’s important to balance your deductible amount with your budget and your coverage needs.
Exclusions are specific situations or types of damage that are not covered by your insurance policy. Be sure to read the policy exclusions carefully to ensure you understand what is and isn’t covered.
Endorsements are additions or modifications to your policy that can expand or enhance your coverage. If you have specific needs, such as coverage for a unique service or specialized equipment, ask the insurance company if they offer endorsements that can be added to your policy.
The premium is the amount you pay for your insurance coverage. Be sure to compare premiums from different insurance companies and understand what factors are influencing the cost of your coverage.
Reputation of the insurance company
Finally, it’s important to consider the reputation of the insurance company you are obtaining a quote from. Research the company’s history, financial stability, and customer service record to ensure you are working with a reputable provider that can meet your needs.
Best beauty salon insurance providers
Here are the 4 best providers of beauty salon insurance that we recommend:
- Simply Business: Best provider to compare several quotes to find the cheapest quotes
- NEXT: Best digital carrier with affordable rates
- The Hartford: Best comprehensive coverage from a top and most ethical carrier
- Smart Financial: Best brokerage firm to work with if you prefer working with a knowledgeable agent
Be sure to get several quotes from these providers to find the cheapest one for your salon business.
What coverage may a beauty salon insurance policy include?
Here are the five main insurance coverage a beauty salon may need:
General liability insurance
General liability insurance is a foundational policy that covers basic risks associated with running a business. It provides coverage for third-party bodily injury and property damage claims, as well as advertising and personal injury claims. For beauty salons, some examples of coverage under general liability insurance may include:
- Slip and fall accidents that occur on the salon’s premises
- Damage to a customer’s property, such as a broken phone or lost jewelry
- Claims of defamation or copyright infringement related to the salon’s advertising or marketing materials
Professional liability insurance
Professional liability insurance, also known as errors and omissions insurance, provides coverage for claims arising from professional mistakes or negligence. For beauty salons, some examples of coverage under professional liability insurance may include:
- Claims of bodily injury or illness resulting from a treatment or service provided by the salon, such as a chemical burn or allergic reaction
- Claims of hair damage resulting from a color or chemical treatment
- Claims of infection resulting from unsanitary tools or practices
Commercial property insurance
Commercial property insurance provides coverage for physical damage to the salon’s property, such as the building, equipment, and inventory. For beauty salons, some examples of coverage under property insurance may include:
- Damage to the building resulting from a fire, flood, or other natural disasters
- Theft or damage to equipment, such as styling chairs, hair dryers, and scissors
- Loss of inventory, such as hair products, makeup, and other retail items, due to theft or damage
Workers’ compensation insurance
Workers’ compensation insurance provides coverage for employees who are injured or become ill as a result of their work. In most states, workers’ compensation insurance is required for businesses that have employees. For beauty salons, some examples of coverage under workers’ compensation insurance may include:
- Coverage for medical expenses and lost wages for an employee who is injured while performing a service, such as cutting hair or providing a chemical treatment
- Coverage for a nail technician who develops carpal tunnel syndrome as a result of repetitive motions
Commercial auto insurance
Commercial auto insurance provides coverage for vehicles that are used for business purposes. For beauty salons, this may include coverage for vehicles used to transport employees or equipment to off-site locations. Some examples of coverage under commercial auto insurance may include:
- Coverage for damages or injuries resulting from an accident involving a vehicle used for business purposes
- Coverage for theft or damage to a vehicle used for business purposes, such as a mobile salon or a van used to transport equipment
It’s important to note that the types of insurance a beauty salon needs may vary depending on factors such as the size of the business, the types of services offered, and the number of employees. A licensed insurance agent can help business owners determine which types of insurance are necessary for their specific needs.
Is beauty salon insurance required by law?
The requirement for beauty salon insurance may vary depending on the state where the salon is located. In some places, certain types of insurance may be required by law, while in others it may be optional.
For example, in California, salons must have liability insurance, while in Florida, salons are required to carry both liability and property insurance.
It is always a good idea for beauty salons to carry insurance to protect their business from potential risks and liabilities, even if it is not required by law in their area. Insurance can help cover the cost of lawsuits, property damage, and other unexpected incidents that can occur in a salon environment.
Below are the beauty salon insurance requirements in the top 10 states:
- California: Beauty salons in California are required to carry liability insurance with a minimum coverage amount of $50,000 for bodily injury or property damage.
- Florida: In Florida, beauty salons are required to carry both liability insurance and property insurance. The minimum liability coverage amount is $10,000 per occurrence for bodily injury and $10,000 per occurrence for property damage.
- Texas: There are no specific insurance requirements for beauty salons in Texas, but it is recommended that salons carry liability insurance to protect themselves from potential lawsuits.
- New York: Beauty salons in New York are not required by law to carry insurance, but it is recommended that they have liability insurance to protect themselves from potential liabilities.
- New Jersey: There are no specific insurance requirements for beauty salons in New Jersey, but it is recommended that they carry liability insurance to protect themselves from potential lawsuits.
- Georgia: There are no specific insurance requirements for beauty salons in Georgia, but it is recommended that they carry liability insurance to protect themselves from potential liabilities.
- Pennsylvania: Beauty salons in Pennsylvania are not required by law to carry insurance, but it is recommended that they have liability insurance to protect themselves from potential liabilities.
- Ohio: There are no specific insurance requirements for beauty salons in Ohio, but it is recommended that they carry liability insurance to protect themselves from potential liabilities.
- Illinois: Beauty salons in Illinois are not required by law to carry insurance, but it is recommended that they have liability insurance to protect themselves from potential liabilities.
- Colorado: There are no specific insurance requirements for beauty salons in Colorado, but it is recommended that they carry liability insurance to protect themselves from potential liabilities.
- Massachusetts: Beauty salons in Massachusetts are not required by law to carry insurance, but it is recommended that they have liability insurance to protect themselves from potential liabilities.
It’s important to note that insurance requirements can change, so it’s always a good idea for beauty salon owners to check with their state or local government to ensure they have the appropriate coverage. Additionally, while not required by law, other types of insurance such as workers’ compensation, professional liability, and cyber liability insurance may be beneficial for salon owners to consider as well.
What is salon liability insurance & Why do you need it?
Salon liability insurance is a type of insurance policy designed to protect salon owners and employees from financial loss due to claims of bodily injury or property damage that may occur on their premises or as a result of their services.
There are several types of liability insurance that a salon may need, including:
- General liability insurance: This covers accidents or injuries that may occur on the salon’s premises, such as a client slipping and falling or injuring themselves while receiving treatment.
- Professional liability insurance: Also known as “errors and omissions” insurance, this covers claims of negligence or errors in the services provided by the salon, such as a client suffering an injury or reaction due to treatment.
- Product liability insurance: This covers claims of injury or property damage caused by products used or sold by the salon, such as a client suffering an allergic reaction to a product used during treatment.
Having salon liability insurance is important because it helps protect the salon and its employees from potentially costly lawsuits or claims. Without insurance, the salon would be responsible for covering the cost of any damages or injuries out of pocket, which could be financially devastating. Additionally, many clients expect businesses to have liability insurance, so having it can also help build trust and credibility with customers.