Barbershop insurance refers to commercial policies that owners of salons, barbershops, and spas typically purchase. The most common salon policy is general liability, which covers claims that your business caused injury, property damage, or reputational damage. Salon insurance costs range from $300 to $5,800 per year, depending on how many policies you need.
Cost isn’t the only thing salon owners need to consider when purchasing insurance. They should also look for a financially strong company that offers policies that cover their specific risks, like Hartford. their team of experts can help you select the right coverage and tailor it to your business and budget. you can get a free quote in minutes.
Reading: How much is salon insurance
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hairdressing insurance costs
Beauty salon insurance costs depend largely on the number of policies and coverage amounts you select. homeowners who only get a business owner’s policy (bop) pay about $480 to $850 a year. However, bops do not cover all the risks salons face, so many homeowners may opt for additional policies. this can increase your total insurance costs up to $5,800 per year.
beauty salon insurance costs & policy deductibles
The number of policies and the amount of coverage you need has a big impact on your salon insurance costs, but major salon insurers consider other factors when setting premiums. These include the characteristics of your business, but policy options also influence your salon insurance costs. for example, most insurers want to know about the following:
- Operations: How you run your business has a big impact on your costs. For example, salons with tanning beds tend to pay higher premiums than those without.
- Revenue: Higher income salons often have higher premiums for liability insurance because courts consider income when sentencing, meaning these salons have a higher potential cost for insurers to cover.
- employees: Having more staff increases your likelihood of filing workers’ compensation, general liability, and business property claims.
- deductibles: Opting for a higher deductible generally lowers your premium because it means you take on more financial responsibility in the event of a claim.
- Coverage amount: You can increase the limits on most policies, but that increases the overall costs of salon insurance.
- Location: Certain locations may face higher risks of crime, extreme weather, and flooding, which can affect the premium on your commercial property.
- a client’s medical bills after they slip into your salon
- a neighbor’s repair bills if a fire in your living room causes smoke damage to your building
- your legal bills if a competitor sues for defamation
- occupational injuries such as lung diseases caused by inhalation of hazardous chemicals
- traumatic injuries such as a broken wrist after a fall
- repetitive stress injuries such as carpal tunnel syndrome from hair cutting
- tanning services
- airbrushing services
- hair implant and transplant
- eyelash tinting or coloring services
- massage services
- red light therapy services
While cost is always an important part of selecting salon insurance, homeowners should also consider value. Getting the minimum coverage can save money in the short term, but you may be underinsured if you have to file a claim.
common insurance policies for hair salons
general liability insurance
general liability insurance covers third party bodily injury, property damage, and advertising injury. This is basic coverage for salon owners because third party claims are a common risk. Additionally, general liability is often required for business licenses and business leases. Cases where general liability applies include:
General liability generally has completed product operations coverage to pay for property damage and bodily injury caused by defective products or defective services. For example, if your salon is sued after the shampoo you sell causes customers’ hair to fall out, then the completed product operations portion of your general liability policy covers your court costs.
commercial property insurance
Business property insurance covers your business’s physical assets, like your room and the contents inside. Policies generally pay to repair or replace these assets when they are damaged by certain events, such as fire, theft, vandalism, or windstorms. salon owners should also look for a sewer backup endorsement. most commercial property policies exclude damage from sewer and drain overflow or overflow, which can be quite a risk for salons.
Salons often get a commercial property package and general liability insurance at a reduced price when buying bops. Most bops also include business interruption coverage, which covers loss of income and ongoing expenses if your salon is forced to close due to a covered event.
workers compensation insurance
Workers’ compensation insurance provides benefits to stylists, assistants, receptionists, and other employees of your beauty salon when they suffer work-related injuries or illnesses. coverage includes medical bills and lost wages and is required in most states when a business has one or more employees.
State law determines coverage, but injuries covered by workers’ compensation generally include:
professional civil liability insurance
Professional liability insurance, also called errors and omissions (E&O) insurance, covers your legal fees if a client claims your negligence or error caused them financial harm. Whether the costs are his fault or not, professional liability insurance helps pay for attorney bills, court fees, and lawsuits or settlements.
For example, let’s say you accidentally dye your client’s hair the wrong color and she claims she lost a modeling job because of it. If that client sues, the professional salon’s liability insurance covers his legal bills.
equipment breakdown coverage
Equipment breakdown coverage pays for losses caused by mechanical failure of almost any piece of equipment, including heating, ventilation, and air conditioning (hvac) systems; tanning beds; and computers can be purchased as a stand-alone policy or endorsed into a property policy. Many salon owners assume their commercial property insurance covers these events, but that policy only pays for damage caused by outside sources. Equipment breakdown coverage pays for damage caused by internal sources, such as power surges and motor failure.
Salon owners may need equipment breakdown insurance for machinery housed in buildings they own. that’s when they’re most likely to be responsible for repairs to furnaces and air conditioning units. however, even homeowners who rent space often rely on equipment that is expensive to repair and can get coverage for it.
additional hairdressing insurance policies
Salon owners may need coverage beyond the policies listed above. This mainly depends on your business practices, for example, whether you own the building where you work or drive to meet customers. some of the more common additional policies are listed below.
commercial auto insurance
Commercial auto insurance covers repairs and related claims when a vehicle used by your salon is involved in an accident. Most states require a minimum amount of liability coverage for company-owned vehicles to pay for damages you cause to others, but policies may also include coverage for damage to your cars and any vehicles your company owns. company rents, hires or borrows.
Unlike other policies, commercial general insurance is not used to protect against a specific risk. instead, it adds coverage when other liability policies are insufficient. For example, if your general liability limit is $1 million, but a client’s slip and fall claim costs $1.5 million, an umbrella policy pays the additional $500,000. Buying an umbrella policy is often more cost-effective than adding coverage to your other liability insurance.
a bop combines general liability and commercial property in a single policy, covering the most common business risks. For salon owners, getting a bop is more convenient and profitable than getting general liability and business property separately.
Some business owners may choose to include business interruption as a clause under a bop, as it protects them from lost revenue and ongoing expenses incurred when a covered claim forces them to suspend business operations.
commercial crime insurance
Business crime insurance covers financial losses resulting from illegal activities such as check fraud, theft, and counterfeit money schemes. most policies reimburse policyholders whether the offenders are employees or outside parties.
Salon owners often assume these financial losses are covered by business property insurance. Unfortunately, property policies often exclude employee actions and stolen money, so business crime insurance is essential for salon owners who have employees or regularly have cash on hand.
exclusions to hairdressing insurance
Barber shop insurance provides protection to owners of salons, barbershops and spas against the risks they may face when dealing with their clients. however, some insurers may exclude transactions that make your business too risky for them to provide insurance protection. These services don’t mean you can’t get coverage, but you may have to pay more or go to a surplus broker to get your liability policies.
Some of the excluded practices that are considered new and unproven or invasive are:
hairdressing insurance for booth renters
Salon owners who lease their space to independent contractors, often referred to as booth renters within the industry, would have additional insurance concerns. In most cases, neither general liability nor professional liability will cover independent contractors working in your salon, and you may find yourself in a lawsuit over the actions of the booth renter.
To ensure full protection, salon owners can choose from the following options:
- Find an insurance company that can extend coverage to cabin renters.
- add your booth renters to your liability policies as additional insured.
- Requiring all booth renters to carry their own barber liability insurance.
Options 1 and 2 will increase the salon owner’s liability insurance despite ensuring coverages are in force. option 3 puts the burden and cost of obtaining insurance on the contractor, but puts the onus on the salon owner to follow up to make sure the contractor obtains and maintains sufficient coverage.
insurance for home hairdressers
Barbers who work out of their homes would need salon insurance, as most homeowners policies exclude business activities. For example, if a client is injured at home and is accused of professional negligence, he may have to pay the costs out of his own pocket. getting a bop can protect against this.
There are many different types of salon businesses, and each one has unique exposures that need to be protected with the right insurance policies. To get a better idea of what beauty salon insurance policies you need, speak to an insurance representative who can assess your risk and get you a quote from a leading insurance provider.
the hartford has a team of experts who will work with you to identify your needs and ensure your salon is covered. Get your free, no-obligation online quote in minutes.
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