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Salon Insurance: Many Styles to Choose From

Jason Metz

Barber shops, hair salons, tanning salons and cosmetologists are business types that need salon insurance. But their specific insurance needs can vary. For example, a salon that styles a bridal party's hair at the wedding venue might need different hair salon insurance than a barber shop that only takes appointments in-house.

A good place to start is with a business owners policy (BOP). This typically includes general liability insurance, business property insurance and business income insurance. Then you can add other customizable coverage types.

Basic salon insurance

Commercial general liability insurance
Salon liability insurance covers the business for injuries and property damage. For example, if someone is accidentally cut during an appointment or you damage someone else's property while taking an appointment at a client's home.

Business interruption insurance 
If a problem covered by your policy, such as a fire in your salon, forces you to temporarily close or relocate, this helps cover expenses. It may also help replace lost income.

Commercial property insurance
This protects your building and its contents from problems such as fire, hail, theft and vandalism. It also typically covers signs and outdoor fencing. Contents might include salon chairs, towels and computers.

Additional salon insurance

Depending on what services the salon offers, you may need additional coverage. It's a good idea to speak with a business insurance agent to pick the coverage that best fits the types of problems you might encounter.

Commercial auto insurance

If you're using a vehicle for work-related tasks, like picking up salon supplies or driving to client appointments, a personal auto policy generally doesn't cover you for an accident while working.

Equipment breakdown insurance

If your business relies on key pieces of equipment, such as tanning beds or computers to book appointments, this helps cover the cost of repair or replacement. It can also help replace lost income if business is interrupted while the equipment is down.

Product liability insurance

If your salon sells products such as shampoos, soaps, oils or nail lacquers, you could be held liable if a product causes harm. For example, if a hair dye is improperly labeled and causes burns. This typically covers the cost of a legal defense, settlements and judgments.

Professional liability insurance

Also known as errors and omissions insurance, this covers claims that you didn't provide a service that was expected or promised. For example, if you missed an appointment because you mistakenly double-booked appointments for two wedding parties and couldn't go to one.

Workers compensation insurance

This covers medical costs and disability insurance if an employee becomes ill or get hurt while performing work-related tasks.