What would happen if a client slipped on shampoo suds in your salon? The individual stylist manning the station could be held responsible for the accident, and so could you as the salon owner!
While getting coverage for your salon isn’t as exciting as snapping a client’s gorgeous “after” photos, it is crucial for protecting your business and giving you peace of mind. Everything you need to know is here in our guide to insurance for a beauty salon.
👉Can you count the number of stations in your salon? If so, find out how much your coverage costs in a snap. Read ‘til the end for more!
What Is Salon Liability Insurance?
Salon liability insurance is coverage designed to protect you from a variety of costly business-related claims, including client injuries, damage to client property, and even unmet client expectations.
Think of insurance for hair salons as the ultimate finishing spray, keeping your business safe from risks that threaten to derail all your hard work.
This insurance coverage is tailored specifically for salon owners who lease or rent their business space. It’s for businesses like:
- Hair salons
- Nail salons
- Barbershops
- Blowout bars
- Beauty salons
- Skincare salons
- Lash and brow salons
- Spray tanning salons
- Mobile beauty salons
- Hotel or resort salons
- Makeup salons
- Salon suites
Whether your salon operates on a booth rental or employee model, you need salon insurance to protect your business fully.
Remember the shampoo slip-and-fall scenario from earlier? The reason you could be held liable for someone else’s mistake is called vicarious liability — it means a client can hold you accountable for your employee’s or contractor’s actions simply because you own the business!
From stocking products to running promos, your business budget handles a lot. Can it withstand a minus of an extra $100K to amend a situation with a client?
For most salon owners, the answer is “no.” That’s why salon liability insurance is essential. It protects you from paying for unhappy incidents, whether unintentionally caused by you or your stylists.
Common Risks Salon Owners Face
What’s the worst that can happen? A client demanding that their brassy color be redone? It gets more serious than that.
Here are some common risks you face:
- A client slips and falls on a puddle of water and breaks their wrist
- A client suffers a severe allergic reaction to eyelash adhesive
- A client’s expensive new smartphone is damaged by a hot tool
- A stylist’s color work accidentally causes severe chemical burns
- A client claims your salon’s services caused permanent hair loss
Whether the mistake is real or perceived, a client can take legal action against your business, but with insurance coverage, you won’t face that battle alone.
💸Read more real-life salon insurance claims.
Guide to Beauty Salon Liability Insurance Coverage
You wouldn’t use a razor for a blunt cut, nor a matte setting spray for a dewy skin look. Proper tools ensure the best results! In the same way, different salon insurance coverage types protect you from specific business risks.
General Liability Insurance
General liability insurance is broad coverage for accidents that happen at your salon. It’s designed to cover clients getting injured or having their property damaged while on your business premises, minus any specific professional mistakes.
It’s also called “slip and fall” insurance because it covers general incidents, like a client slipping in your reception area, that could be completely out of your control.
For: 🩼general accidents
Professional Liability Insurance
Professional liability insurance is more focused coverage for claims related to the professional services your salon offers. This could be one of your stylists making a recommendation that backfires, or a client alleging your salon permanently ruined their hair (even if it’s untrue!).
Service-related injuries are common in the beauty industry, and this coverage is essential in case your professional services accidentally fall short.
For: 💇🏻♀️professional mistakes
Products and Completed Operations Coverage
Products and completed operations coverage is designed to cover the products your salon uses and any services rendered if something goes wrong after a client leaves your business.
Say a client receives a gel manicure at your salon. Days later, they claim they’re experiencing painful swelling on their fingertips due to the polish (product used) from the manicure (completed operation).
Neither you nor your nail tech could have foreseen this reaction, but luckily, this coverage could kick in to cover the claim.
For: 🧴products and 💅🏻services (after they’re completed)
Personal and Advertising Injury Coverage
Personal and advertising injury coverage protects your business against claims of non-physical damages, such as libel, slander, or copyright infringement.
Here’s an example scenario: One of your stylists does a “story time” on Instagram about a nightmare client that regularly visits your salon. That client stumbles upon the content and sues your salon for invasion of privacy and emotional harm.
Think of this coverage as protection for your online marketing, in case a competitor accuses you of copying their logo, and accidental reputational damage caused by your business.
For: 💔non-physical injuries
Fire Legal Liability Coverage
Fire legal liability coverage pays to repair your rented space if it’s damaged by accidental fire. From hot tools to flammable products, there’s a lot of fire risk in your salon — and if one does break out, you can expect your landlord to hand the repair bill to you.
In 2023, property damage caused by local fires in the U.S. was estimated at $23 billion! Fire is one of the most common causes of property damage, which is why this coverage is essential for protecting your salon’s physical space.
For: 🔥fire damage
Medical Expense Limit
The medical expense limit is a built-in coverage that pays for third-party medical bills — whether or not your business is at fault. It’s designed to quickly help a client get the medical care they need to prevent the situation from escalating into a lawsuit.
Think of this coverage as a buffer that protects you from dipping into the rest of your insurance bucket of money.
For: 🩺client medical bills
Pro Tip: Beauty & Bodywork Insurance (BBI) bundles all the above coverages into one easy salon insurance policy, so you don’t have to guess whether you’re getting all the essential protection you need.
Additional Coverages to Consider
Depending on your salon’s needs, consider adding the following optional coverages:
- Tools and supplies coverage: Pays to repair or replace your movable business property in case of theft or damage (multiple tiers of coverage available!)
- Cyber liability insurance: Covers damages if your salon undergoes a data breach (for example, client credit card info stolen from your online database)
- Additional insureds: Extends your insurance coverage to a qualified third party, such as your salon’s landlord
What’s Typically Covered by Beauty Salon Insurance
Beauty salon insurance is designed to protect your business from expensive oh-nos, but it’s crucial to understand what is and isn’t typically covered.
What’s Usually Covered
✔️Liability claims involving you (say you as the owner also provide services at your salon)
✔️Liability claims related to your staff or contractors in the context of your salon
✔️Accidents that happen while providing covered beauty services at your salon
✔️Theft or damage of your business tools (if you have tools and supplies coverage)
What’s Not Covered
❌Intentional damage (like using a dangerous mix of products)
❌Personal use of your salon space
❌Services excluded by the policy
❌Normal wear and tear on tools
See BBI’s list of exclusions.
How Much Hair Salon Insurance Costs
✨BBI’s salon insurance starts at $31.08 per month.
Salon insurance costs vary depending on your business needs. Most salon insurance companies consider the following factors to determine your premium cost:
- Annual revenue
- Size of your salon
- Number of employees
- Type of services offered
- Claims history
BBI offers simplified pricing based solely on the number of stations you want to insure, plus any coverage add-ons you select.
Any stylist who works at one of your insured salon stations is automatically covered. Our transparent pricing and blanket coverage enables you to focus on connecting with clients — not on managing individual policies!
Guide to Insurance for a Beauty Salon: Pricing
| Number of Stations | Monthly Pricing | Annual Pricing |
|---|---|---|
|
1-2 Stations |
$31.08 |
$349
|
|
3 Stations |
$39.42 |
$449
|
|
4-5 Stations |
$47.75 |
$549
|
|
6-7 Stations |
$49.92 |
$575 |
|
8-9 Stations |
$58.25 |
$675 |
|
10 Stations |
$66.58 |
$775
|
Choosing the Right Policy for Your Salon
Finding comprehensive hair salon business insurance doesn’t have to feel like sweeping the floor for hair again and again. Follow this simple flowchart to find the right coverage for your salon.
BBI Is Styled for Your Business Needs
FAQs About Insurance for Hair Salons
What Insurance Do I Need for My Beauty Business?
At a minimum, you need general and professional liability insurance to properly cover your beauty business. These coverages are designed to pay for third-party claims of bodily injury, property damage, and professional mistakes.
You may also need insurance endorsements (for specific services) or optional coverages (to cover your tools and supplies, for example).
If you have employees, you may need workers compensation insurance, which is available through our sister company, Insurance Canopy.
How Much Does a $1,000,000 Liability Insurance Policy Cost?
BBI’s salon insurance is a $3 million liability policy, which means the maximum amount of coverage available to you in the policy year is $3 million. BBI offers this industry-preferred coverage limit at one of the most affordable rates on the market, starting from $349 a year.
Are Stylists Covered Under My Salon Insurance Policy?
Under your BBI salon insurance policy, any stylist who performs services at one of your insured stations is automatically covered. As the salon owner, you’re also covered for claims related to your stylists.
However, it’s highly recommended that each stylist get their own individual policy for the most comprehensive coverage, both for themselves and the salon.
What Insurance Does a Booth Renter in a Salon Need?
A salon booth renter needs booth renters insurance, which is coverage for an individual beauty professional. This coverage is designed to protect a contract or mobile stylist at the booth they rent or at various locations if they work on the go.
JoAnne Hammer | Program Manager
JoAnne Hammer is the Program Manager for Beauty and Bodywork Insurance. She has held the prestigious Certified Insurance Counselor (CIC) designation since July 2004.
JoAnne understands that starting and operating a business takes a tremendous amount of time, dedication, and financial resources. She believes that insurance is the single best way to protect your investment, business, and personal assets.
JoAnne Hammer is the Program Manager for Beauty and Bodywork Insurance. She has held the prestigious Certified Insurance Counselor (CIC) designation since July 2004.
JoAnne understands that starting and operating a business takes a tremendous amount of time, dedication, and financial resources. She believes that insurance is the single best way to protect your investment, business, and personal assets.
