Insurance for salons
Do you own a salon or have dreams of opening your own salon one day soon? How exciting! You know what it takes to pamper clients and create a relaxing environment. But do you know what’s not relaxing? Claims, injuries, and lawsuits. To make sure you’re protected, you’ll want to cover your salon with small business insurance.
Salon insurance requirements
If you own a business, rely on business-owned equipment, offer specialized beauty services, have clients, and/or have employees, business insurance is definitely something that’s recommended. With all of the above, comes risk. If something were to happen, you may find yourself facing a suit from a disgruntled client or employee.
Without the right coverage, if something happens you would have to pay any potential expenses out of pocket, which could really impact your operations.
Salon liability insurance
Professional liability insurance protects you from legal claims, regardless of if you were technically at fault or not. Anyone can choose to sue anyone for anything nowadays, making it necessary for you to protect yourself from unexpected lawyer and court fees, as well as judgments or settlements.
Professional liability benefits cover:
- Claims alleging you or one of your employees made a professional error
- Claims you or an employee behaved in a negligent manner
- Claims you or an employee did not meet professional standards
Let’s say you perform a hair treatment on one of your clients and they experience an allergic reaction. Even though you technically didn’t do anything wrong, they could still sue you.
On average, professional liability insurance for salon owners costs $37/month, which amounts to $444/year.
General liability insurance for salons
General liability insurance is often a requirement for salon owners. This policy protects you from third-party claims, which are considered to be a common risk these days.
- Third-party claims for bodily injury
- Property damage
- Reputational harm
If a client trips while entering the salon and breaks their wrist, your general liability policy would cover the hospital trip.
General liability insurance for salons hovers around $29/month, or $348/year.
Salon workers’ comp
Workers’ compensation insurance is a type of policy that provides you with benefits if something were to happen to you or one of your employees during the workday. If someone suffered a work-related injury or illness and you do not have a workers’ comp policy, you would be responsible for paying both medical bills and lost wages. Many states require a business to have this type of policy when they have one or more employees.
Salon workers’ comp covers:
- A work-related illness or injury
- You or your employees’ medical bills
- Lost wages
If one of your employees is experiencing a repetitive stress injury and needs medical treatment, workers’ comp will help pay their medical costs.
For salons with employees, you might expect to pay around $950/year for workers’ compensation insurance.
Property insurance for salons
Commercial property insurance specifically covers your business assets. This includes the building you are conducting business in, as well as your business equipment and inventory. If your assets are damaged due to things like fire, theft, or vandalism, you would have to pay out of pocket if you did not have a property insurance policy to protect you.
Property insurance benefits include covering:
- Damages made to your property, including building, equipment, and inventory
- Replacement and repair costs
If a pipe bursts and causes water damage to your work gear and supplies, property insurance will cover the damages.
Commercial property insurance tends to cost salons around $43/month, which is $516 per year.
While business owner’s policies are a great bundle for salons, packaging together general liability and business property insurance. With a BOP, you get two coverages at a more affordable price point than buying each of the policies on their own.
strong>Salons usually pay $60/month for a BOP, which amounts to $720/year.
Umbrella Insurance for salons
Umbrella insurance provides you with extra coverage above and beyond your current policy limits.
If a client sues you and they are to be paid more than your other insurance policies can cover, umbrella insurance will cover the extra amount that needs to be paid so you are not out of pocket.
An umbrella insurance policy might cost you around $275/year.
Other insurance policies for salon owners
Business auto insurance is required when a vehicle is owned by a business.
Cyber insurance protects you against cyber-attacks and helps cover any data recovery costs or lost income.
Salon insurance cost
When it comes to how much you can expect to pay, it depends on things like your operations, your revenue, your location, and your employees. It also depends on the amount of coverage you choose, as well as your deductible.
Compare salon insurance quotes to save money
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