You pour your heart into your salon. Every appointment, new look, and “Wow!” reaction makes it all worth it. So, what’s the best way to protect your hard work? Carrying the right types of salon insurance.
Choosing liability insurance for your salon may not be as easy as picking out a new hair product line to carry, but we’re here to walk you through it.
Find simplified insurance explanations below. Plus, test your knowledge at the end — you’ll ace it, we promise!
Insurance for Salons: Coverage Selector
What types of insurance do you need for your salon? Let’s do a quick exercise.
| You… | The Coverage You Need | How BBI Offers It |
|---|---|---|
|
Interact with clients in your salon space
|
General liability insurance |
Included in the base salon owner’s insurance policy
|
|
Offer haircuts, manicures, or other professional services
|
Professional liability insurance
|
Included in the base salon owner’s insurance policy |
|
Use products during services |
Products and completed operations coverage |
Included in the base salon owner’s insurance policy |
|
Have employees or contractors working at your salon |
General + professional liability + products and completed operations coverage |
Included in the base salon owner’s insurance policy (blanket coverage for up to 10 stations) |
|
Rely on tools and supplies to operate your salon |
Tools and supplies coverage (inland marine) |
Optional add-on (four tiers available) |
|
Accept payments or bookings online
|
Cyber liability insurance
|
Optional add-on |
|
Offer cupping or microcurrent services
|
Cupping or microcurrent endorsement
|
Optional add-on
|
Understanding Insurance for Your Salon Business
What types of insurance do salons need? Every salon needs three essential coverages: general liability insurance, professional liability insurance, and products and completed operations coverage.
General Liability Insurance
General liability insurance is coverage designed for accidents like slip-and-fall injuries or property damage that happen at your salon. These don’t necessarily have to be your salon’s fault — they just happen to take place at your business.
✔️A client slipping on a spilled drink
✔️A hot tool damages a client’s smartphone
A client can hold you liable (responsible) for paying for their medical bills or replacing their phone.
Professional Liability Insurance
Professional liability insurance is essential coverage in case you or your stylists accidentally injure a client or make a recommendation that backfires. It can also cover a dispute if a client is simply dissatisfied with their service results!
✔️A stylist accidentally cuts a client with sharp scissors
✔️A client says their nail art looks nothing like the picture
A client can sue your salon for any real or perceived professional mistakes.
Products and Completed Operations Coverage
Products and completed operations coverage helps pay for claims related to the products you use or the services you provide after a client leaves. It’s similar to product liability insurance; however, products and completed operations coverage does not cover any products you sell.
✔️A client suffers an allergic reaction from hair dye
✔️A client gets an infection from a manicure days later
A client can take legal action for the harm caused by your salon’s products or services.
Pro Tip: Beauty & Bodywork Insurance (BBI) bundles the above coverages into one easy salon insurance policy. It covers up to 10 stations, and all the stylists who work them are automatically covered.
Optional Coverages You Might Need
Some other insurance for salons you can add to protect your business better include:
- Tools and supplies coverage: Pays to repair or replace your movable business property, like hot tools, products, and tablets, in case of theft or damage
- Cyber liability insurance: Covers damages if your salon suffers a data breach (for example, client credit card info stolen from your online booking system)
- Cupping or microcurrent endorsement: Extends your coverage to include more specialized services
- Additional insureds: Adds a qualified third party, such as your salon’s landlord or franchisor, to your policy in case they’re also named in a claim
Dive deeper with our salon insurance guide.
You Got It — Test Your Understanding!
1. A client trips over a power cord at your salon and breaks their ankle. Who might be held responsible?
A) The client — they should’ve been more careful
B) The stylist — they were closest to the accident
C) The salon owner — the injury happened on their business premises
Answer and Explanation
✔️ C
Explanation: General liability insurance covers third-party injuries or property damage that occur at your business.
2. A client claims their stylist damaged their hair by using the wrong product and wants compensation. What kind of insurance would help?
A) General liability insurance
B) Professional liability insurance
C) Products and completed operations coverage
Answer and Explanation
✔️ B
Explanation: Professional liability covers claims of negligence, errors, or unsatisfactory service, even if it’s just a matter of opinion.
3. A client calls you two days after a facial, saying they broke out in a rash. What kind of coverage could help?
A) General liability insurance
B) Professional liability insurance
C) Products and completed operations coverage
Answer and Explanation
✔️ C
Explanation: This coverage applies to issues caused by services or products used after the client has left your salon.
4. Your curling iron and a box of retail products are stolen during a break-in. What coverage helps you recover?
A) General liability insurance
B) Professional liability insurance
C) Tools and supplies coverage
Answer and Explanation
✔️ C
Explanation: Tools and supplies coverage helps replace portable business items that are damaged or stolen.
5. A hacker accesses your online booking system and steals client credit card numbers. What coverage do you need?
A) Products and completed operations coverage
B) Cyber liability insurance
C) General liability insurance
Answer and Explanation
✔️ B
Explanation: Cyber liability helps cover costs related to data breaches.
6. Your salon’s landlord wants to be included in your insurance policy. What should you do?
A) Nothing, your coverage automatically includes them
B) Add them as an additional insured
C) Ask them to get their own policy
Answer and Explanation
✔️ B
Explanation: Adding a landlord as an “additional insured” ensures they’re also protected under your policy if a claim involves the property.
BBI’s Insurance for Salon Owners
Now that you understand what types of insurance salons need, why not get covered?
BBI offers comprehensive salon coverage with smart pay-per-station pricing that ensures you and your team are fully protected! Coverage starts at just $31.08/month or $349/year.
You’ve built something beautiful — and worth protecting. BBI’s here to support your business with real peace of mind.
FAQs About Salon Insurance Coverage Types
Why Do You Need Salon Insurance?
You need salon insurance to protect your business from claims like client injuries, property damage, and more! It’s a safety net that keeps you from paying out of pocket if something goes wrong, whether caused by you, your stylists, or indirectly at your business.
Is Salon Insurance Required by Law?
Salon insurance isn’t always required by law, but it’s often mandatory:
- By landlords: Your lease may require you to carry liability insurance and list your landlord as an additional insured
- By state boards: Some state boards require proof of insurance to maintain your professional license
- By franchises: Franchisors typically require coverage to operate under their brand name
- For employees: If you have employees, you may be legally required to offer workers compensation insurance (available through our sister company, Insurance Canopy)
Can I Operate a Salon From Home Without Insurance?
Yes, you can, but it’s risky. Homeowners or renters insurance typically won’t cover business-related incidents, so you could be personally liable if a client is injured or property is damaged during an appointment.
What’s the Minimum Insurance Coverage I Should Have for a Salon?
At a minimum, you need general and professional liability insurance to safeguard your salon. The industry standard is $2 million in coverage per claim and $3 million in coverage for the policy year.
BBI offers this exact coverage at an affordable rate, so you can feel confident you’ll be protected when it matters the most.
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.
