Complete Guide to Salon Insurance in 2024

Salon insurance is a vital investment for a business owner in the salon industry. It helps to protect you in all sorts of situations, providing necessary coverage in case accidents happen at your hair salon location. There are various salon insurance types for salon owners, from salon public liability insurance to salon shop insurance and salon contents insurance. You should always budget for this type of salon expenses.

Understanding the differences between the different business insurance coverage for a hair salon business is important. It’s also vital to know which of the different varieties you need to protect your business, your clients, your investments, and your staff. This guide will cover all you should know about the need for insurance in a salon.

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1. Why Is Salon Insurance a Good Idea?
2. What Insurance Do Hair Salons Need?
3. What Insurance Do Booth Renters Need?
4. Where to Get the Best Salon Insurance?
5. How Much Does Salon Insurance Cost?
6. Conclusion

Why Is Salon Insurance a Good Idea?

So why do you actually need coverage like professional liability policies, workers’ compensation coverage, and general liability insurance in your salon? Well, in the simplest of terms, the right insurance can save your business.

You may not want to think about it, but there are all kinds of things that can go wrong in a salon. An injury could happen when certain styling tools are being used, a client might slip and fall on the floor, property damage might happen because of accidents or angry clients, employees could suffer injuries while working, and so on.

Fortunately, whether you’re dealing with customer injuries, equipment and property damage, or some other kind of risk, accident, injury, or problem, insurance can cover you.

Indeed, the whole purpose of any kind of insurance policy for businesses and companies is to cover them against unexpected fees, issues, and situations. It protects you in scenarios where you could be facing legal actions like lawsuits or financial ruin.

As an example of this, just imagine if a customer, client, or employee suffered an injury on your premises. Without the benefits of a policy, that injured employee could make a claim against you and request that you pay damages for the pain and fees associated with their injuries. However, as long as you have a policy in place, you’ll be covered against lawsuits.

What Insurance Do Hair Salons Need?

There are many different kinds of salon insurance. If you look online, you can find references to all sorts of coverages, like professional liability insurance, general liability coverage, business owners’ policies, personal injury insurance, salon safe insurance, salon services insurance, hand insurance for hairdressers, and much more.

So which ones do you actually need to protect your business operations and keep your customers and team members protected? Here is a brief rundown of the main policy varieties:

General Liability Insurance

General liability is one of the most important kinds of insurance. A general liability policy protects your hair salon from lawsuits and claims if someone gets hurt or property gets damaged at your salon. For example, if somebody slips on a wet floor or liquid gets spilled on their computer.

Commercial Property Insurance

When it comes to insurance, commercial property insurance is designed to cover the property that hair salons own and use each day. Commercial insurance can include the building itself, along with related tools and equipment you use to provide services.

Business Owner’s Policy

This is a package that basically includes general liability and property coverage. It covers and protects you against all sorts of perils and threats, like damage to personal property, equipment, or employee theft.

Professional Liability Insurance

Professional liability insurance will protect hair salons if workers make a professional error that leads to losses or damages for a client or customer. If you’re insured in this way, you won’t have to worry about covering the cost of a claim that a client makes if they get hurt while having their hair styled.

Workers Compensation Insurance

Workers’ compensation, as the name implies, is designed to protect the employees at your hair salon business. Workers’ compensation covers claims when workers get hurt or ill and need to take time off from work.

Business Income Insurance

This form of commercial insurance will protect you in case your business income levels drop or your financial situation is damaged due to things like crimes or natural disasters, like an earthquake that disrupts your business.

What Insurance Do Booth Renters Need?

You may also need insurance if you rent a booth or chair at a salon. You don't need to worry about things like workers compensation, but you will need to obtain booth rental insurance. This type of insurance is designed to protect renters and independent licensed stylists.

It's a lot like the other types of insurance listed above, providing coverage for property damage, general liability, pro liability, and so on. You can usually find renters packages incorporating all of these different policy types, or you can purchase them individually.

It’s good to call an agent and speak with them to get free, expert advice on the options available to you.

Where to Get the Best Salon Insurance?

We’ve seen some of the benefits of different insurance types and looked at some of the top ways to insure your business, but how do you find the right policy and the right insurance company? Well, there are a lot of different companies out there, and it's important to take your time, read reviews, check policy fine print, and choose the right insurance company to insure your salon. Here are five licensed companies you can rely on to deliver the business insurance coverage you need:

• The Hartford - The Hartford is an experienced and highly-rated insurance company. It offers a wide range of policies, including customizable business owners insurance. It also has an impressive A+ rating and offers coverage across the contiguous US.

• Beauty & Bodywork - Beauty & Bodywork is another top-rated insurance company to consider. It offers fully-featured coverage plans at really affordable prices. You can pay less than $100 a year with this insurance company to get huge amounts of professional liability and property damage insurance coverage. Students get discounts, too.

• CyberPolicy - You may have seen this insurance company appearing in an insurance commercial online. It's actually a comparison site that you can use to compare prices and policies with different trusted carriers. All you have to do is fill out a simple application form and then pick the insurance company that works best for you.

• Allstate - Allstate is a well-known and widely-trusted insurance company. It offers general liability insurance and commercial property insurance as part of business owners plans. There are other potential add-ons you can choose with this insurance company too, like lost wages coverage or crime insurance, which is ideal for hair salon owners and employers who worry about issues like theft in the workplace.

• Hiscox - If you're running a home salon, Hiscox is a great business insurance company to choose. They offer business owners plans and simple online applications, so you can find quotes and get prices in a matter of seconds.

How Much Does Salon Insurance Cost?

One of the most-asked questions on this subject is “How much is salon insurance?” The truth is that the cost for each policy can vary, based on a range of different factors, such as:

• Coverage amount - If you need more coverage, you’ll usually have to pay a higher monthly or annual premium to get it.

• Revenue - Businesses that generate lots of revenue usually have to pay bigger premiums, due to the fact that they have more to lose.

• Services - The types of services you offer can also impact the prices you need to pay, as some services are deemed to be riskier and more likely to lead to claims.

• Employees - The number of employees you have and the types of workers you have can also have an impact.

• Location - Location may also affect the cost to salon owners. For example, some areas have high crime rates, leading to higher premiums. Or, if you’re renting an older building, the costs may be higher due to risks of structural damage.

Prices can also vary for different types of business. If you need insurance for a home salon, the costs will be lower than they would be for a full-service business with a lot of staff, for example.

Average prices can range from anywhere as low as $50 per month all the way up to $1,000 per month. Statistics show that the average price is about $250 per month. Home salon insurance and booth renters insurance or insurance for hairdressers renting a chair should be lower than this.

Do not miss our post about Salon Expences.

Conclusion

No matter what kind of big or small business you run, it’s important to have the right kinds of insurance policy in place. Insurance protects you against all sorts of unforeseen accidents and difficult situations, and it’s a legal obligation for small business owners to have certain kinds of coverage in the salon industry.

Hopefully, this guide has helped you understand more about your insurance needs as a hair salon owner, as well as answering some questions you may have had about the costs of hairdressing salon insurance and how to find the right policies. Make sure you’ve got the best possible salon insurance to minimize risks and maximize protection for your clients, and staff.

Citations

Insurance and risk
http://lchc.ucsd.edu/cogn_150/Readings/ewald/ewald.pdf

Insurance, information, and individual action
https://www.sciencedirect.com/science/article/pii/B9780122148507500279

Risky business: Insurance companies in global warming politics
https://direct.mit.edu/glep/article-abstract/1/4/18/14134