Running a beauty or hair salon business can be a fulfilling venture, but it also comes with its fair share of risks. From property damage and theft to customer injuries and lawsuits, there are several potential threats that could affect your bottom line. That’s why having the right insurance coverage is essential for salon owners. In this article, we’ll discuss the different types of insurance coverage available for beauty and hair salons, where to find insurance quotes, and what you need to know to choose the right policy for your business.
- 4 best beauty and hair salon insurance quotes
- Types of insurance coverage for beauty and hair salons
- Is beauty and hair salon insurance required by law?
- How much does beauty and hair salon insurance cost?
- Factors affecting beauty and hair salon insurance quotes
- Tips for choosing cheap beauty and hair salon insurance quotes
4 best beauty and hair salon insurance quotes
After knowing the types of insurance coverage that you should have to protect salon business, it’s time to find the right insurance policy for your business. Here are the top 4 providers that we recommend you find beauty and hair salon insurance quotes:
- Simply Business: Best for comparing several quotes to find the cheapest one
- NEXT: Best digital and affordable quotes for salon businesses
- The Hartford: Best comprehensive quotes from a very reputable and highly ethical carrier with 200+ years of experience
- Smart Financial: Best salon insurance quotes from knowledgeable agents
Simply Business: Best for comparing several quotes to find the cheapest one
Simply Business is an insurance brokerage specializing in serving small businesses, including all types of salons. As a broker, Simply Business works with several carriers, most of which are reputable with an A financial strength rating. The biggest benefit of working with Simply Business is that they are able to pull several quotes from their carrier partners so that you can compare several quotes at once to find the cheapest one for your salon business.
Simply Business offers all types of coverage that a salon business may need. Whatever coverage you are interested in, you will be able to find the cheapest quotes with Simply Business.
Simply Business also offers a good digital experience. It is most likely that you will get your quotes and complete your purchase online. You can also manage your policy completely online.
If you are new to buying beauty or hair salon insurance, you can choose to speak to one of their agents, who are very knowledgeable. They can help you understand the coverage that you may need and other nuances that you should be aware of.
NEXT: Best digital and affordable quotes for salon businesses
NEXT is a new insurance company. They were founded in 2016, but has quickly become one of the leaders in small business insurance. They are known for the best digital experience for small businesses to buy and manage their insurance needs.
NEXT started out offering general liability insurance only, but has since expanded to offer more coverages that small businesses may need such as professional liability insurance, commercial property, and commercial auto insurance.
NEXT is also known for its affordable rates. This is partially thanks to its digital-only, direct-to-customers business model. They are able to cut costs and pass savings to their customers in the form of lower rates.
The Hartford: Best comprehensive quotes from a very reputable and highly ethical carrier with 200+ years of experience
The Hartford is one of the reputable leaders in the small business insurance industry. They have been around for 200+ years and insuring more than 1M small businesses. They have earned an unparalleled reputation of being one of the most ethical corporations in the world.
The Hartford offers one of the most comprehensive salon business insurance coverage. Whatever coverage you need, buying from the Hartford, you can rest assured that you have sufficient protection from one of the best carriers when it comes to the time you need it.
While the Hartford is known for its high consumer satisfaction ratings, the rates may be a bit higher than other options. But higher rates in exchange for comprehensive coverage and excellent customer satisfaction ratings should be worth it.
Smart Financial: Best salon insurance quotes from knowledgeable agents
Smart Financial is another small business insurance brokerage firm. If Simply Business offers a great digital experience, Smart Financial believes that small business owners are best served by knowledgeable agents, who can help business owners understand the nuances of insurance coverage, why they need it, and the best options for them.
If you prefer working with a knowledgeable agent to buy the right coverage at the best rate for your salon business, you may want to consider Smart Financial. They will match you with an agent in their network who has the most experience serving similar businesses like yours. After helping you identify the right coverage that your salon business needs to ensure sufficient protection, the agent will be able to find several quotes for you to compare and find the cheapest one.
Types of insurance coverage for beauty and hair salons
Before you start looking for insurance quotes, it’s essential to understand the types of coverage available. Here are the most common insurance policies that beauty and hair salons should consider:
General liability insurance
General liability insurance provides coverage for third-party bodily injury, property damage, and advertising injury. For example, if a customer slips and falls on a wet floor in your salon, general liability insurance would cover their medical expenses and any legal fees if they decide to sue your business.
Professional liability insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, provides coverage for claims related to professional services or advice you provide. For example, if a customer suffers a hair loss or damage due to your negligence or mistake, professional liability insurance would cover the damages and legal fees if they sue your business.
Commercial property insurance
Commercial property insurance provides coverage for damages or losses to your business property, such as your salon equipment, furniture, and fixtures. Property insurance can also cover the cost of repairing or rebuilding your salon if it’s damaged due to fire, theft, or natural disasters.
Workers’ compensation insurance
Workers’ compensation insurance provides coverage for medical expenses, lost wages, and other benefits for your employees if they get injured or sick while performing their job duties. Workers’ compensation insurance is mandatory in most states, and failing to have it could result in hefty fines or legal penalties.
Is beauty and hair salon insurance required by law?
The laws and requirements regarding beauty and hair salon insurance can vary by state in the US. It is very likely that liability insurance is legally required in most if not all, states. However, coverage limit requirements may be different among the states. Here are a few examples:
- New York: In New York, beauty salons are required to have liability insurance to protect customers from accidents and injuries that may occur on the premises.
- California: In California, salons that offer nail or skin care services are required to have a minimum of $1,000,000 in liability insurance.
- Texas: In Texas, salons are required to have liability insurance with a minimum of $100,000 per person and $300,000 per occurrence for bodily injury, and $50,000 for property damage.
It’s important to check with your state’s licensing board or regulatory agency to understand the specific insurance requirements for your salon. Additionally, even if insurance is not required by law, it’s still a good idea to consider obtaining coverage to protect your business and its assets from unexpected events.
If you rent a building for your salon, it is likely that your landlord will require you to have a commercial property insurance policy or a commercial renters insurance policy as a part of the lease.
How much does beauty and hair salon insurance cost?
The average cost of a $1M general liability insurance policy for salons is $55 per month, or $660 per year. Most salons pay between $29 to $117 per month for their general liability insurance policy. This is the most popular policy that all salons need.
Beauty and hair salons may also need professional liability and commercial property insurance too. These policies will cost more. A comprehensive salon insurance policy costs an average of $190 per month.
Below are the average costs of different policies that beauty and hair insurance may need:
|Beauty and hair salon insurance coverage
|General liability insurance
|$55 per month
|Professional liability insurance
|$30 per month
|Commercial property insurance
|$105 per month
Keep in mind that these are just the averages. The rates for your policies will be different. Be sure to shop around with a few companies or work with a broker like Simply Business or Smart Financial to get and compare several quotes to find the cheapest one for your salon business.
Factors affecting beauty and hair salon insurance quotes
Several factors can affect your insurance quotes for beauty and hair salons. Here are some of the most significant factors:
Business location and size
The location and size of your salon can significantly impact your insurance quotes. For example, if you operate in an area prone to natural disasters or high crime rates, you may have to pay higher insurance premiums. Similarly, if your salon is larger and has more employees, your insurance premiums may be higher to cover the increased risk of accidents or injuries.
The types of services you offer in your salon can also affect your insurance quotes. For example, if you offer chemical treatments or other high-risk services, your insurance premiums may be higher to cover the increased risk of customer injuries or property damage.
Safety measures and security systems
Having safety measures and security systems in place can help lower your insurance premiums. For example, if you have CCTV cameras, fire alarms, and other security measures installed in your salon, your insurer may view your business as less risky and offer you lower insurance rates.
Your claims history can also impact your insurance quotes. If you’ve had multiple claims filed against your business in the past, your insurance premiums may be higher to cover the increased risk of future claims.
Tips for choosing cheap beauty and hair salon insurance quotes
Now that you know where to find insurance quotes, it’s important to know how to choose the right insurance policy for your business. Here are some tips to keep in mind:
Consider coverage limits and deductibles
When comparing insurance quotes, make sure you’re comparing policies with similar coverage limits and deductibles. Coverage limits refer to the maximum amount an insurance policy will pay for a covered claim. Deductibles refer to the amount you’ll need to pay out of pocket before your insurance policy kicks in. Generally, policies with higher coverage limits and lower deductibles will have higher premiums.
Review the policy exclusions and endorsements
Policy exclusions refer to the specific events or circumstances that your insurance policy won’t cover. Endorsements, on the other hand, refer to additional coverage options that you can add to your policy for an extra cost. Make sure you carefully review the policy exclusions and endorsements of each policy you’re considering to ensure you’re getting the coverage you need.
Look for additional benefits and discounts
Many insurers offer additional benefits and discounts for beauty and hair salons. For example, some insurers may offer free legal advice or risk management resources to help you prevent claims. Others may offer discounts for bundling multiple insurance policies or for implementing safety measures in your salon.
Compare quotes from different insurers
Finally, make sure you compare insurance quotes from different insurers before making a decision. Don’t just choose the policy with the lowest premium; make sure you’re getting the coverage you need from a reputable insurer with a strong financial rating. Here are the best beauty and hair salon insurance companies for your consideration.
In summary, finding the right insurance coverage for your beauty or hair salon is essential to protect your business from potential risks and liabilities. Make sure you understand the types of coverage available, the factors that can affect your insurance quotes, and where to find insurance quotes. When comparing insurance quotes, make sure you consider coverage limits and deductibles, review the policy exclusions and endorsements, look for additional benefits and discounts, and compare quotes from different insurers. With the right insurance policy in place, you can focus on running your salon with peace of mind knowing that you’re protected.