Best Beauty Salon Business Insurance

NEXT ranks first for beauty salons with perfect scores in coverage and affordability, offering comprehensive protection at competitive rates. Even so, we recommend comparing quotes from The Hartford, Coverdash, Nationwide, and Simply Business, our other top picks.

*We based all scores on a beauty salon business with two employees across professional liability, general liability, workers' comp and BOP policies.

Coverdash leads as the most affordable business insurance for beauty salons at $42 monthly, especially for general liability coverage. However, salon owners seeking workers comp, professional liability, and BOP insurance will find better rates with NEXT and The Hartford for these protection needs.

Coverdash delivers the most affordable general liability insurance for beauty salon owners and stylists at $42 monthly on average. This saves you around $18 per month compared to typical industry rates for similar businesses.

Beauty and hair salon owners shopping for workers' comp insurance will find NEXT offers the most affordable coverage at $14 per month. The next cheapest options are The Hartford, Thimble, Progressive Commercial and Simply Business.

The Hartford and NEXT offer the most affordable professional liability insurance options for hair salon with average monthly rates of $44 and $46, respectively. Compared to the industry average for salons, you can save around $3 per month with The Hartford.

Beauty salon owners seeking combined general liability and property coverage through a business owner's policy can find the most affordable rates with biBERK at $1,286 annually. This rate is $34 cheaper per year than Thimble, the next most affordable option.

In general, salon business insurance costs are the following for the four most popular coverage types:

• General Liability Insurance Cost: $67 on average per month, ranging from $58 to $78, depending on the state
• Workers' Compensation Insurance Cost: $15 on average per month, ranging from $13 to $17, depending on the state
• Professional Liability Insurance Cost (E&O): $49 on average per month, ranging from $42 to $57, depending on the state
• BOP Insurance Cost: $99 on average per month, ranging from $85 to $116, depending on the state

Beauty salons need several types of insurance to protect their business. General liability insurance covers customer injuries and property damage, while professional liability (errors & omissions) protects against claims of negligence or service mistakes. Workers' compensation is required by law in most states if you have employees, covering medical expenses and lost wages for work-related injuries. Additional recommended coverage includes commercial property insurance to protect your building, equipment, and inventory from damage or theft and business income or interruption coverage if operations are forced to be stopped.

Below we've broken down these recommended coverages, why there important for a salon business and the coverage amount you should get:

• General liability: Protects your salon from third-party claims of bodily injury and property damage, including client slip-and-falls, allergic reactions to products, or accidental damage to clients' personal items. We recommend $1 million per occurrence or $2 million aggregate policy.
• Workers' compensation: Required by law in most states if your hair or beauty salon has employees. This coverage pays medical expenses and lost wages for work-related injuries, such as cuts from styling tools, chemical burns, repetitive strain injuries, or slip-and-fall accidents in the salon.
• Professional liability: Shields your beauty salon from claims of service errors, negligence, or unsatisfactory results, such as damaged hair from chemical treatments, botched color jobs, or adverse skin reactions. A minimum of $1 million per claim or $1 million aggregate is recommended and often required by booth rental agreements.
• Commercial property: Covers your salon's physical assets including the building (if owned), styling stations, equipment, product inventory, and furniture against damage from fire, theft, vandalism, or natural disasters. Most salon owners carry $50,000 to $250,000 in coverage depending on your assets.
• Business interruption: Covers lost income and ongoing expenses if your salon must temporarily close due to covered events like fire, flood, or equipment failure. This helps pay rent, utilities, and employee wages while your salon is being repaired and unable to generate revenue.

Here's a step-by-step method for finding the best and most affordable business insurance for your beauty salon.

NEXT ranks as the top overall insurer for beauty salon business insurance due to its balanced combination of comprehensive coverage, competitive pricing, and excellent customer service. Coverdash provides the most affordable rates overall, making it ideal for cost-conscious salon owners. We also recommend comparing quotes from The Hartford, Nationwide, and Simply Business to ensure you find the best fit for your specific needs. To secure the most favorable terms, consult with insurance agents and fellow salon owners, research typical costs for your business size and location, and gather quotes from multiple providers before making your final decision.

We answer frequently asked questions about beauty salon business insurance:

We selected the best business insurers for beauty salon companies based on the following criteria:

• Affordability (50% of score): We compared each company's premiums against competitors using our standard profile across four essential coverage types—general liability, professional liability, workers' compensation, and business owner's policy. Lower costs relative to the market earned higher scores.
• Customer service (30% of score): We evaluated overall customer satisfaction through industry studies from organizations like J.D. Power, customer reviews on platforms such as Trustpilot and Google, and sentiment analysis from public forums including Reddit to gauge real-world experiences.
• Coverage (15% of score): We assessed each provider's policy flexibility, payment options, coverage breadth, and salon-specific endorsements to determine how well they meet the diverse needs of beauty salon businesses.
• Financial stability (5% of score): Using ratings from AM Best, Moody's, and other industry evaluators, we measured each insurer's financial strength and reliability in paying claims when salon owners need it most.

All pricing in this article is based on the following profile representing a typical small beauty salon:

• Three-person business with two employees
• Coverage limits: $1 million per occurrence and $2 million aggregate annually for general liability, professional liability, and workers' comp; BOP includes the same liability limits plus $5,000 in business property coverage
• $150,000 in annual payroll
• $300,000 in annual revenue