5 Best Commercial Property Insurance for Nail, Hair, and Beauty Salons

Many carriers offer commercial property insurance for nail, hair, and beauty salons. Their policies are a bit different from one another and can be confusing to find the best one for your salon. Here are the top 5 providers that we recommend:

Simply Business: Best for comparing several quotes to find the cheapest policy
The Hartford: Best comprehensive policy from a top-tier carrier
NEXT: Best for a completely digital experience
Smart Financial: Best brokerage firm to find cheapest policies with minimum coverage
Tivly: Best brokerage firm if you prefer working with an independent and knowledgeable agent

Be sure to shop around with a few companies to find the cheapest policy for your salon business.

Learn more at the best hair and beauty salon insurance companies

What is commercial property insurance?

Commercial property insurance is a type of business insurance that covers the physical assets of a company, such as the building, equipment, furniture, and inventory. It provides financial protection against losses caused by events like fires, storms, theft, and vandalism. For salon owners, this insurance is essential in ensuring that their businesses can recover from damages and continue to operate.

Types of coverages typically included in a salon commercial property insurance

Building coverage

Building coverage protects the physical structure of your salon, including the walls, roof, and floors. If you own the building where your salon operates, this coverage is crucial to cover repair or replacement costs if it is damaged by a covered event.

Business personal property coverage

This type of coverage protects the contents of your salon, such as chairs, mirrors, styling tools, and products. Business personal property coverage ensures that you can replace or repair these items if they are damaged, stolen, or destroyed.

Business interruption coverage

Also known as business income coverage, business interruption insurance compensates you for lost income if your salon has to close temporarily due to a covered event. This coverage can help cover ongoing expenses like rent, payroll, and utility bills while your business is closed.

Optional coverages salons should consider

Equipment breakdown

Equipment breakdown coverage helps cover the cost of repairing or replacing damaged equipment, such as styling tools or air conditioning units, due to mechanical or electrical breakdowns.

Spoilage

If your salon offers services that involve perishable items, such as hair dye or skincare products, spoilage coverage can protect you from financial losses due to spoilage caused by power outages or equipment failure.

Sewer backup

This coverage protects your salon from damages caused by sewer or drain backups, which can lead to water damage and potential health hazards.

How much does commercial property insurance cost for nail, hair, and beauty salons?

The average cost of commercial property insurance for salons is $148 per month, or $1,776 per year. Most salons pay between $82 and $275 per month.

Below are the average costs for different types of salons:

Salon types	Average costs of commercial property insurance
Nail salons	$126 per month
Hair salons	$105 per month
Beauty salons	$178 per month

These are just the averages. Your rates will be different. Be sure to shop around with a few companies or work with a top brokerage firm like Simply Business to compare several quotes to find the cheapest one for your salon business.

Learn more at how much does salon insurance cost?

What factors impact the cost of commercial property insurance for salons?

Several factors can affect the cost of commercial property insurance for salons. These factors can vary depending on the individual characteristics of the salon and the level of coverage required. Some key factors include:

Location: The geographical location of the salon can have a significant impact on insurance costs. Salons in areas prone to natural disasters, such as hurricanes, floods, or earthquakes, may face higher premiums. Additionally, salons located in neighborhoods with higher crime rates may also have higher insurance costs due to an increased risk of theft and vandalism.
Size and value of the property: The size and value of the salon will influence the cost of insurance. Larger salons with more square footage or higher property values typically require more extensive coverage, which can result in higher premiums.
Type of construction: The materials used in the construction of the salon building can affect insurance costs. Buildings made from fire-resistant materials, like concrete or brick, may have lower premiums than those made from wood or other combustible materials.
Value of business assets: The value of the salon’s equipment, inventory, and furnishings can impact insurance costs. Higher-value assets typically require more coverage, which can result in increased premiums.
Type of services offered: Salons that offer a wide range of services, including spa treatments or specialized services like permanent makeup, may face higher insurance costs due to the increased risk of potential liabilities associated with these services.
Security measures: Salons with robust security systems, such as surveillance cameras, alarm systems, and access control, may have lower insurance costs, as they are less likely to experience theft or vandalism.
Claim history: A salon’s claim history can influence insurance costs. If a salon has a history of frequent claims, the insurer may view it as higher risk, leading to increased premiums.
Deductibles and coverage limits: Choosing higher deductibles (the amount you pay out of pocket before insurance coverage begins) can lower your insurance premiums. However, this also means you’ll be responsible for covering more costs in the event of a claim. Similarly, selecting lower coverage limits can reduce premiums but may leave you underinsured in case of significant damage or loss.
Insurance provider: Different insurance providers may offer different rates based on their assessment of risk and their underwriting guidelines. It’s essential to shop around and compare quotes from multiple providers to find the best coverage at the most competitive price for your salon.

How much commercial property insurance do you need for your salons?

Each salon needs different amount of commercial property insurance to appropriately cover their risks. Each salon has their own characteristics that may require different coverage amounts.

In order to determine how much commercial property insurance coverage you need for your salons, you must first identify the potential risks and vulnerabilities that your salons face and assess the financial impacts of these risks on your business:

Identifying potential risks and vulnerabilities

Before selecting a commercial property insurance policy, it’s essential to assess the risks your salon faces. Some common risks include:

Natural disasters: Depending on your salon’s location, it may be susceptible to events like hurricanes, tornadoes, floods, or earthquakes.
Theft and vandalism: Salons often have valuable equipment and products that can be targets for theft. Vandalism can also cause costly damages to your property.
Fire and water damage: Accidents or electrical issues can lead to fires, while plumbing problems can result in water damage.
Equipment malfunction: The tools and equipment used in salons can break down, leading to costly repairs or replacements.

Evaluating the financial impact of these risks on your business

Consider the potential costs of repairing or replacing damaged property, lost income due to business closure, and increased expenses during the recovery process. This assessment will help you determine the level of coverage you need to protect your salon from financial losses.

Coverage differences for salon owners vs. renters

Key distinctions between owning and renting a salon

Owning and renting a salon comes with different responsibilities and control over property modifications and improvements. Understanding these distinctions is essential when choosing the right commercial property insurance coverage for your salon.

Coverage consideration for salon owners

Building and property coverage

Salon owners are responsible for insuring the physical structure of their buildings. Building coverage should be included in their commercial property insurance policy to cover repair or replacement costs in case of damage due to covered events.

Liability for accidents on the premises

As the property owner, you may also be held responsible for accidents that occur on your premises, such as slips and falls. Including general liability coverage in your insurance policy can help protect you from financial losses due to these incidents.

Coverage consideration for salon renters

Lease requirements for insurance coverage

Salon renters should carefully review their lease agreements to understand any insurance requirements imposed by their landlords. Renters may be required to carry a specific level of coverage or include their landlords as additional insureds on their policies.

Tenant’s improvements and betterments coverage

If you have made improvements or upgrades to your rented salon space, such as installing new flooring or lighting, consider adding tenant’s improvements and betterments coverage to your policy. This coverage helps protect the financial investment you’ve made in customizing the space.

Choosing the right coverage for your salon

Factors to consider when selecting a policy

When selecting a commercial property insurance policy for your salon, consider the following factors:

Location and size of your salon: The location of your salon may affect the likelihood of certain risks, such as natural disasters or crime rates. The size of your salon can influence the value of your property and assets, which will impact the coverage limits you need.
Type of services offered: Different salon services may require different types of coverage. For example, if you offer spa services, you may need additional coverage for potential liabilities related to those services.
Value of your business assets: Consider the total value of your salon’s physical assets, including the building, equipment, and inventory, to ensure you have adequate coverage to replace or repair them in case of a covered loss.
The extent of your risk tolerance: Some salon owners may be comfortable with higher deductibles and lower coverage limits to reduce their insurance premiums, while others may prefer more comprehensive coverage for added peace of mind.

Tips for comparing policies and insurance providers

Understanding policy exclusions: Carefully review each policy’s exclusions to ensure you’re not left unprotected from specific risks that are relevant to your salon.
Comparing premiums, deductibles, and coverage limits: Evaluate different policies based on their costs, the amount you’re responsible for paying before coverage kicks in (deductibles), and the maximum amount the insurer will pay for a covered loss (coverage limits).
Reading customer reviews and checking ratings: Research insurance providers by reading customer reviews and checking their ratings from organizations like A.M. Best or the Better Business Bureau to ensure they have a solid reputation for financial stability and customer service.

Claims process and loss prevention

Steps to take when filing a claim

Documenting the damage: Take photos and videos of the damaged property and make a detailed list of the affected items.
Contacting your insurance provider: Notify your insurance provider as soon as possible to report the damage and start the claims process.
Cooperating with the claims adjuster: Provide any requested documentation and information to the claims adjuster, who will assess the damage and determine the amount of your claim payout.
Following up on the claim: Keep track of your claim’s progress and follow up with your insurance provider if necessary.

Loss prevention strategies

Implementing a robust security system: Install surveillance cameras, alarms, and access control systems to deter theft and vandalism.
Regular maintenance and inspections: Schedule routine maintenance and inspections of your salon’s electrical, plumbing, and HVAC systems to prevent potential issues that could lead to damage.
Employee training and awareness: Train your staff to follow safety procedures and maintain a clean and organized workspace to reduce the risk of accidents and damage to your property.
Developing a disaster recovery plan: Create a plan for how your salon will respond to and recover from emergencies, such as fires or natural disasters. This plan should include evacuation procedures, communication strategies, and steps for resuming operations as quickly as possible.

Conclusion

Commercial property insurance is a vital component of running a successful nail, hair, or beauty salon. By understanding the coverage options available, assessing your salon’s risks, and choosing the right policy for your business, you can safeguard your investment and ensure that your salon can continue to thrive despite unforeseen setbacks. Remember to implement loss prevention strategies and maintain open communication with your insurance provider to make the most of your coverage and minimize potential financial losses.

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.