Salons and spas are businesses that offer various beauty and wellness services to customers. While these services can help people look and feel their best, they also come with risks. That’s why it’s important for salon and spa owners to have insurance coverage to protect their businesses, employees, and customers. In this article, we’ll explore the different types of insurance coverage, cost factors, and recommended providers for salons and spas.
- How much does salon and spa insurance cost?
How much does salon and spa insurance cost?
The average cost of a $1M general liability insurance policy for salons and spas is $50 per month, or $600 per year. Most salons and spas pay from $29 to $114 per month for their general liability insurance policies.
Salons and spas may need other coverage such as professional liability, commercial property, and workers comp insurance. Below are the average costs of these coverages:
|Salon and spa insurance coverage
|General liability insurance
|$50 per month
|Professional liability insurance
|$32 per month
|Commercial property insurance
|$128 per month
|Workers comp insurance
|$42 per month
Please keep in mind that these are just average. Your rates will be different. Be sure to shop around with a few companies or work with a leading broker such as Simply Business or Smart Financial to compare several quotes to find the cheapest one your salon.
What factors affect salon and spa insurance costs?
The cost of salon and spa insurance can vary depending on several factors. Some of the most significant factors that can impact insurance costs include:
Business size and scope
The size and scope of a salon or spa can have a significant impact on insurance costs. Larger businesses with more employees and higher revenue may require more coverage than smaller businesses. Additionally, salons and spas that offer more services, such as hair coloring, waxing, or massage, may need additional coverage. Generally, the more comprehensive the coverage, the higher the premium.
Location is another factor that can impact insurance costs. Salons and spas located in areas with higher crime rates may face higher insurance costs due to the increased risk of theft or property damage. Additionally, businesses located in areas prone to natural disasters, such as hurricanes or earthquakes, may need to pay more for property insurance.
Insurance companies consider a business’s claims history when determining insurance costs. A salon or spa that has a history of frequent claims, such as slip-and-fall accidents or property damage, may be considered higher risk, resulting in higher insurance costs. On the other hand, businesses with a clean claims history may be eligible for lower premiums.
Employee training and safety protocols
Insurance companies often consider a business’s employee training and safety protocols when determining insurance costs. Salons and spas that invest in regular employee training and have strict safety protocols in place may be considered lower risk, resulting in lower insurance costs.
Coverage limits and deductibles
The coverage limits and deductibles selected by a salon or spa can also impact insurance costs. Higher coverage limits and lower deductibles generally result in higher premiums, while lower coverage limits and higher deductibles can result in lower premiums. It’s essential to strike a balance between the coverage needed and the premiums that can be afforded.
Salon and spa owners should consider these factors when shopping for insurance coverage. While insurance costs can vary depending on these factors, it’s essential to invest in adequate coverage to protect the business, employees, and customers from financial losses in the event of accidents, injuries, or other unexpected events.
Salon and spa insurance quote – What we should consider:
Salon and spa owners should carefully consider insurance quotes from different providers to ensure they’re getting the right coverage at a fair price. Here are some important factors to consider when reviewing insurance quotes:
Coverage types and limits
The first thing to consider is the types of coverage offered and the limits of coverage for each type. Salon and spa owners should ensure that the coverage types and limits match their business’s specific needs. For example, a business that provides massage services should have adequate professional liability coverage, while a business located in an area prone to natural disasters may need higher property insurance coverage limits.
Exclusions and endorsements
Salon and spa owners should carefully review the policy’s exclusions and endorsements to understand what’s not covered and what additional coverage may be needed. For example, a general liability policy may exclude coverage for certain activities, such as tanning, while an endorsement may be required to cover services like microblading.
Premiums and deductibles
Insurance quotes should clearly outline the premiums and deductibles for each type of coverage. Salon and spa owners should consider the affordability of the premiums and the impact of deductibles on out-of-pocket costs if a claim is filed.
Insurance provider reputation and customer service
Salon and spa owners should research the reputation and customer service of insurance providers before purchasing a policy. Look for customer reviews and ratings, industry awards and recognitions, and any complaints or legal actions against the provider.
Finally, salon and spa owners should understand the claims process and how to file a claim if necessary. Look for information on how to report a claim, what documents are required, and the expected timeline for claims processing.
By carefully considering these factors when reviewing insurance quotes, salon and spa owners can make informed decisions on which insurance policies to invest in to protect their businesses. It’s important to shop around and compare quotes from different providers to find the right coverage at a fair price.
Where to find salon and spa insurance quotes?
Many insurance companies offer salon and spa insurance quotes. Below are our recommendations for the top salon insurance providers:
- Simply Business: Best brokerage firm to compare several quotes to find the cheapest one
- NEXT: Best digital carrier with affordable rates
- Smart Financial: Best brokerage if you prefer working with a knowledgeable agent
- The Hartford: Best carrier with comprehensive coverage and great customer satisfaction
What insurance coverage do salons and spas need?
Salon and spa owners should consider several types of insurance coverage to protect their business, employees, and customers. These include:
General liability insurance
General liability insurance is essential for all salons and spas. It covers accidents and injuries that occur on the business premises, such as slip-and-fall accidents, property damage, and bodily injury. For example:
- If a customer slips and falls on a wet floor and gets injured, general liability insurance would cover the medical expenses and any resulting legal fees.
- If a stylist accidentally spills hair dye on a customer’s clothing and damages it, general liability insurance would cover the cost of replacing the clothing.
Professional liability insurance
Professional liability insurance, also known as errors and omissions insurance, protects salons and spas from claims of negligence, malpractice, or inadequate work. It covers legal fees and damages if a customer sues the business for damages resulting from a treatment or service. For example:
- If a customer suffers an allergic reaction to a hair dye and sues the salon for damages, professional liability insurance would cover the legal costs and any resulting damages.
- If a spa therapist injures a customer during a massage, professional liability insurance would cover the medical expenses and legal fees.
Commercial property insurance
Commercial property insurance covers damage to the salon or spa property, such as theft, fire, or natural disasters. It also covers the cost of repairing or replacing damaged equipment and furnishings. For example:
- If a fire damages the salon’s equipment and furnishings, property insurance would cover the cost of replacing them.
- If a break-in results in stolen equipment, property insurance would cover the cost of replacing the stolen items.
Workers’ compensation insurance
Workers’ compensation insurance is required by law in most states and covers medical expenses and lost wages if an employee gets injured or sick while working. It also covers legal fees if an employee sues the business for damages. For example:
- If an employee gets injured while using a hair dryer, workers’ compensation insurance would cover the medical expenses and lost wages.
- If an employee develops carpal tunnel syndrome from repetitive tasks, workers’ compensation insurance would cover the medical expenses and lost wages.
Understanding the different types of insurance coverage and their respective benefits and exclusions is important for salon and spa owners to make informed decisions on which policies to invest in to protect their businesses.
Is salon and spa insurance required?
Salon and spa insurance is not typically required by law at the federal level, but it may be required at the state or local level depending on where the business is located. Additionally, many commercial landlords and lenders may require proof of commercial property insurance as a condition of the lease or loan.
State-level requirements can vary widely, so it’s important for salon and spa owners to check their state and local regulations to understand any insurance requirements. For example, some states may require businesses to carry workers’ compensation insurance if they have employees, while others may require liability insurance for specific types of services, such as hair coloring or piercing.
In addition to state-level requirements, salon and spa owners may also be subject to industry-specific regulations and requirements. For example, some state licensing boards may require proof of insurance as a condition of obtaining or renewing a license to operate a salon or spa. General liability insurance is often a requirement by many state licensing boards for salon and spa to be issued with a license.
Salon and spa owners should consult with an insurance professional and their state and local regulatory agencies to understand any insurance requirements and ensure they’re adequately protected against potential risks and liabilities. Even if insurance isn’t required, investing in insurance coverage can provide peace of mind and financial protection in the event of unexpected events or accidents.