Salon Insurance: The Ultimate Guide

If you own a beauty salon, you know how risky this business can be. The main reason is that sometimes things simply go wrong. And while you can’t prevent unpredictable situations, you can get salon insurance and cover your most valuable assets. 

Because we understand that salon owners have a lot of needs and questions when it comes to getting the right salon liability insurance, we created a short but informative guide that will hopefully help you make the right decision. Here’s everything you need to know if you have a hair, nail, beauty salon, or spa. 

Types of Salon Insurance Policies

Usually, salons need several types of policies that will cover them in most unpredictable situations, including: 

• General Liability Insurance – Covers your business in case of bodily injury, property damage, and personal injury. 

• Commercial Property Insurance – Covers costs related to repairs and losses of income that result from damaging salon equipment.
• Workers’ Comp Insurance – Covers employees who lost their wages and/or needed medical treatments in case of injury. 

Why Do Salon Owners Need Business Insurance? 

Why Do Salon Owners Need Business Insurance? 

Salon owners face a myriad of risks and liabilities in their day-to-day operations, making business insurance an essential investment to protect their assets, employees, and customers. Here’s an in-depth exploration of why salon owners need business insurance:

Workspace Protection:

• Salon owners invest significant resources in creating and maintaining their workspace, from leasing or purchasing the property to furnishing it with equipment and supplies. Business insurance provides essential coverage to protect these assets against unforeseen events such as fire, theft, vandalism, or natural disasters. Without insurance, salon owners risk substantial financial losses that could jeopardize the viability of their business.

Liability Coverage:

• One of the most critical aspects of salon insurance is liability coverage, which protects salon owners from potential lawsuits and financial liabilities arising from accidents, injuries, or property damage that occur on their premises. For example, if a customer slips and falls in the salon, sustains an injury, and holds the salon liable, liability insurance would cover legal fees, medical expenses, and any settlements or judgments awarded to the injured party.

Employee Protection:

• Salon owners have a duty of care to ensure the safety and well-being of their employees. However, accidents or injuries can still occur in the workplace, resulting in workers’ compensation claims. Business insurance provides coverage for employees’ medical expenses, rehabilitation costs, and lost wages in the event of work-related injuries or illnesses. By having workers’ compensation insurance in place, salon owners not only fulfill their legal obligations but also demonstrate their commitment to their employees’ welfare.

Client Protection:

• Salon services involve direct interaction with clients, which entails the risk of potential liabilities if clients suffer harm or damages during their visit. For example, if a client experiences an adverse reaction to a beauty treatment or sustains an injury during a salon service, they may hold the salon responsible and seek compensation. Salon insurance provides coverage for such incidents, including legal defense costs and financial settlements, protecting the salon owner from bearing the full financial burden of these claims.

Professional Liability Coverage:

• In addition to general liability coverage, salon owners may benefit from professional liability insurance, also known as errors and omissions (E&O) insurance. This coverage protects against claims of professional negligence, errors, or omissions in the provision of salon services. For example, if a stylist provides incorrect advice or causes damage to a client’s hair or skin during a treatment, professional liability insurance would cover the salon’s legal defense costs and any resulting damages.

Peace of Mind:

• Ultimately, business insurance provides salon owners with peace of mind, knowing that they have comprehensive coverage in place to protect their business, employees, and clients from potential risks and liabilities. By investing in business insurance, salon owners can focus on delivering quality services and growing their business without constantly worrying about the financial implications of unforeseen events or legal disputes.

What Insurance Does a Beauty Salon Need?

Even when you are the most skilled beauty artist, things could go wrong. It is why you should consider getting a good insurance package for a beauty salon. Here are a few things to consider while getting insurance for a beauty salon.

Usually, beauty salons need general liability insurance, commercial property insurance and workers’ compensation insurance. The policy you choose will protect you and the salon from different types of damages. For instance, you should seek protection from fire and theft-based damages based on the city where your business is located. Also, depending on the beauty salon services you are offering, you may need additional types of coverage as well.

How Much Does Salon Insurance Cost?

Typically, the price of beauty salon insurance is about $2,900 per year. This is the median price for beauty salons, hair salons, barbershops, and spas with two employees. There are several factors that impact the price of salon insurance, including:

• The number of employees
• Business turnover
• Location
• Types of services

What Type of Insurance Do Hairdressers Need?

A typical hairdresser’s salon needs commercial property insurance, general liability insurance, and workers’ compensation insurance. 

What Insurance Protects Employees of the Salon?

Protecting employees in a beauty salon is paramount for salon owners, not only for ethical reasons but also to comply with legal requirements and mitigate financial risks. One of the most crucial insurance policies for safeguarding employees is workers’ compensation insurance. Here’s an in-depth exploration of why workers’ comp insurance is essential for salon owners and how it protects employees:

Legal Requirement and Compliance:

• Workers’ compensation insurance is not only a recommended option but also a legal requirement in most jurisdictions for businesses with employees. Salon owners are typically mandated by law to provide workers’ comp coverage to their employees. Failing to comply with these legal obligations can result in penalties, fines, and even legal liabilities for the salon owner. Therefore, obtaining workers’ compensation insurance is not just beneficial but also necessary to ensure compliance with regulatory standards.

Financial Protection for Employees:

• Workers’ compensation insurance provides financial protection for employees in the event of work-related injuries or illnesses. If an employee is injured while performing their job duties at the salon, workers’ comp insurance covers their medical expenses, rehabilitation costs, and a portion of their lost wages during the recovery period. This ensures that employees receive the necessary medical care and financial support without facing undue financial hardship as a result of a workplace injury or illness.

Coverage for Various Work-Related Incidents:

• Workers’ compensation insurance covers a wide range of work-related injuries and illnesses, including slip-and-fall accidents, repetitive strain injuries, chemical exposures, and occupational diseases common in the salon industry. Whether an employee suffers a minor injury or a severe illness, workers’ comp insurance provides comprehensive coverage to address their medical needs and ensure they receive proper care and support.

Protection Against Legal Claims:

• In addition to providing financial support for injured or ill employees, workers’ compensation insurance also protects salon owners from potential legal claims and lawsuits. By providing a no-fault system, workers’ comp insurance helps mitigate the risk of employees suing the salon owner for damages related to workplace injuries or illnesses. This reduces the likelihood of costly litigation and ensures a smoother resolution of workplace injury claims.

Promotes Employee Loyalty and Morale:

• Offering workers’ compensation insurance demonstrates a salon owner’s commitment to the health, safety, and well-being of their employees. By providing financial protection and support in the event of work-related incidents, salon owners can foster a positive work environment, improve employee morale, and enhance loyalty among their workforce. This, in turn, can lead to higher employee retention rates, increased productivity, and a stronger reputation within the industry.

Get A Real Person, Every Time You Call

When you offer mobile beauty services and spill coffee on your client’s rug, you don’t have the luxury of waiting 45 minutes on hold listening to bad music. We answer the phones ourselves. The same people who pick up the phone are the same people who will help you out.

We Make Salon Insurance Easy For You

The best insurance is when you don’t even have to think about it. When your salon has a liability insurance issue, we take care of all the legwork behind the scenes, so our client – you, can relax.

We Get Things Done Fast

You know what it’s like when you pick up the pieces of a job from a bad beautician, it’s the same with insurance. When we cover you, we get it right the first time, so you can navigate any crisis stress-free.

The Highest Quality Advice Offered

We don’t just offer insurance information. Our clients come to us for help with growing their beauty salons. We are always happy to help.

We don’t just protect your business, we help you grow.

We Take Care Of Any Transfers

Just as it can be uncomfortable when a client changes salons, it’s uncomfortable to change insurance specialists. We take care of everything for you, including the awkward phone call.

Give us 10 minutes. We’ll keep your business running

Are you still confused about salon insurance, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!