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What’s Covered in Salon and Spa Insurance

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Starting your own salon or spa business is an exciting, but potentially overwhelming time. There is so much to do to ensure you are ready for business and can successfully serve customers. One key part of running a business is choosing the right insurance. But what’s covered in salon and spa insurance? 

Here we’ll look in-depth at what’s covered in salon and spa insurance so you can understand what coverage you are looking for and what you need to purchase. 

Purchasing insurance is important, but it doesn’t have to be confusing. Here’s what’s covered in salon and spa insurance so you can make a decision and carry on with what you love most—supporting your clients. 

Why Do You Need Salon and Spa Insurance? 

If you’re reading this, you already know you need salon and spa insurance. But as a quick reminder, insurance is essential for covering you financially and legally in case of a third-party claim. 

Examples of possible claims include:

  • Injury or illness
  • Accidents
  • Property damage
  • Unsatisfied customers
  • Employee misconduct

Having the right type of salon and spa insurance makes sure you are not paying out-of-pocket for legal fees and expenses in the case of a claim. 

Types of Salon and Spa Insurance

  • General liability insurance, which covers incidents that happen in your place of business
  • Professional liability insurance, which covers incidents that happen because of services you offer
  • Product liability insurance, which covers tools and equipment you use

Review the full guide so you understand exactly what each one covers and why you should purchase these three types of insurance for your salon or spa. 

In addition to these three key types of insurance, there are other options for salon and spa insurance coverage: 

  • Commercial auto insurance: This covers damages to your work vehicle in case of an accident. 
  • Commercial crime insurance: This covers losses from illegal activities such as theft.
  • Equipment breakdown coverage: This covers losses caused by mechanical failure in any equipment for your business. For salon and spa owners, this could be anything from tanning beds or computers
  • Worker’s compensation insurance: This covers your employees in the case of an accident or injury on the worksite. Note that this and other types of insurance (i.e., unemployment and disability) are required by law for all businesses with employees. 
  • Commercial property insurance: This covers your business’s physical assets such as the building, equipment, windows, etc. 

While our policy doesn’t cover all of these, our partners at Insurance Canopy can help fill the gap. If you’re unsure what type of spa or salon insurance coverage you need, contact us at Beauty and Bodywork Insurance today for a consultation. 

What’s Covered In Salon And Spa Insurance

Now let’s get into the details of what’s covered in salon and spa insurance. All insurance plans are unique since each salon and spa is unique. While there are some standard items, you will likely need to have some customization to fit your exact business needs. 

Here we’ll review the cost of salon and spa insurance and what to look for specifically in your insurance plan. 

Cost Of Salon And Spa Insurance 

Here are some factors that impact the cost of salon insurance: 

  • Location of your business
  • Whether your space is leased or owned
  • Building type (i.e., freestanding or attached). 
  • Number of employees
  • Claims history

Depending on these factors, you should generally plan to spend between $300–$800 per month to insure your salon. 

Different types of salons will have different pricing. For example, hair salon insurance costs can vary based on the number of full or part-time employees.

Independent contractors for a hair salon, who rent a chair or booth, can be a more affordable option for the salon because it reduces the risk for the business and thus the price paid for insurance.

As the owner, you can also require those independent contractors to carry their own insurance policy and list your business/salon as an additional insured on the employee’s policy.

Spas and beauty salon insurance costs can vary widely not just on the number of employees but also on the services offered. 

For example, consider an esthetician who provides services like laser hair removal, microcurrent therapy, lash and eyebrow treatments, waxing, and teeth whitening. This wide variety of services carries different risks and, therefore, will affect the pricing of the salons.

woman with long hair smiling getting hair cut in salon

Salon And Spa Insurance Coverage Details

Now that you understand some of the factors that impact the cost of salon and spa insurance, you can start to review what’s in a policy. 

When deciding on your spa and salon insurance coverage, start by assessing risks for your business. You need to determine what might happen, based on where you’re located and the nature of your business to know what policy to purchase. 

A good rule of thumb when purchasing insurance is to get it for anything you cannot financially cover yourself. And as your business grows, so does your liability. So you will need to reassess your policy each year and make sure your coverage is still adequate. 

When you are looking for spa and salon insurance coverage, here are 4 things to note in each policy to determine what’s covered in salon and spa insurance. 

1. Business Practice Coverage

When shopping for a policy, the first thing to look for is the services covered within the policy. Beauty and Bodywork Insurance’s Salon and Spa Insurance, for example, covers many types of businesses such as:

  • Beauty and hair salons
  • Day spas
  • Mobile salons and spas
  • Massage spas
  • Health spas
  • Barbers

This is a non-exhaustive list, of course, so it’s important to see if your specific business and services are covered under the policy. 

2. Type of Professional

The other thing many people want to know about what’s covered in salon and spa insurance is the type of professional. 

Specifically, do you need salon and spa insurance coverage if you don’t have any employees? The answer is yes—even if you work alone, you still need spa and salon insurance. 

If you own a business, you need spa and salon coverage for any of the following: 

  • Freelancers or contractors who work in your space
  • Employees hired by your company 
  • Students or interns working with you

In short, any professional working in the salon and spa industry should have an insurance policy to ensure they and their business are protected. 

Some spa and salon insurance policies will not cover those who are in training, not yet certified, or contractors and franchisees. For this reason, make sure you very carefully read and understand who is covered and what kind of certification or professional status they need to maintain.

3. Spa and Salon Coverage Limits

The next thing to understand is coverage limits—the dollar figure that your insurance provider will pay out to cover eligible items under the policy. 

Your salon coverage limits are typically very large numbers and have a few different meanings. Here are some definitions to note:

  • Policy term: This is how long you are covered for; typically you have to renew your insurance after the policy term runs out. 
  • Aggregate limit: Total amount of money your insurance company will pay out to you within the policy term.
  • Occurrence limit: The amount that is payable for one single claim. 
  • Deductible: The amount you pay out-of-pocket when submitting a claim to insurance. If you have a higher deductible, your monthly premiums are lower because you are taking on more financial obligations for the claim. 

So, for example, BBI’s salon and spa insurance plans start at $349.00 a year and include a $3 million general and professional liability aggregate limit. This policy has a $2 million occurrence limit, so that means a single claim will only be covered up to that point in one year (the policy term). 

If you have additional claims, they will be covered up until the $3 million mark. Each policy will have different coverage amounts, so take note of what they are. 

4. Customer Service

The last thing to note for what’s covered in salon and spa insurance is the customer service and support you’ll receive after purchasing your policy. At Beauty and Bodywork Insurance, our team of licensed insurance agents are knowledgeable and can tailor your plan to fit your specific needs. 

You want to partner with someone who will help you get the coverage you need at the right price. So, consider the customer service, knowledge, and support when thinking about what’s covered in salon and spa insurance and what the right option is for you. 

And, since you always want to re-evaluate your spa and salon insurance coverage, make sure you partner with someone you trust and who knows the industry. 

If you’re looking to protect your business or want to learn more about spa and salon insurance coverage, start your quote today. It can be done in ten minutes or less, giving you a quote the same day. We’d be thrilled to help you learn more about how salon and spa insurance can protect your business and answer any questions you may have about starting a quote. 

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