What types of insurance do beauty salons need?
To keep your salon protected, you'll need general liability insurance, professional liability insurance, and workers' compensation insurance.
Updated May 29, 2023.
Opening the beauty salon of your dreams can be incredibly rewarding. However, it also requires that you take the necessary steps to protect your business. One of those steps is ensuring you have the right business insurance in place.
Like many small business owners, beauty salon owners are susceptible to various risks, so having the right insurance can provide protection when a claim is made against your business.
Remember that you may need additional coverage depending on your salon's location and what services you offer. However, most salons may need the following:
Liability insurance
Liability insurance is essential for your business, offering protection against unforeseen risks and financial losses. Two key types of coverage to consider are general liability insurance and professional liability insurance. By securing both, you can mitigate risks, safeguard your finances and provide reassurance to your customers.
1. General Liability insurance
General liability insurance can help cover a variety of risks:
- Damages to property that doesn't belong to you.
- Potential client claims relating to things like slip and fall injuries and reputational harm.
- Legal fees and defense costs.
2. Professional Liability insurance
Professional liability insurance can cover claims of negligence or misrepresentation and any mistakes that occur during your regular business operations, such as complaints about the quality of services provided or errors in the advice you've given. It can also cover legal defense costs to hire the necessary representation to defend your business.
In a beauty salon context, professional liability insurance can cover damages caused by:
- Incorrectly dyeing or cutting a customer's hair.
- A customer's skin reacts negatively to products used during treatments.
- Problems with waxing services.
Workers' Compensation insurance
Workers' compensation insurance can protect your business and employees in the event of work-related injuries or illnesses. It can help pay for lost wages, medical expenses, retraining, permanent injury benefits, and survivor benefits. You can also be protected from financial losses if an employee file a lawsuit against your business.
» Discover who should file a workers' comp claim: Employer or employee?
Protect your beauty salon with NEXT
By investing in the right beauty insurance for your salon, you can protect not only your business but also yourself as the business owner and your employees.
Easily get a customized insurance quote from NEXT that takes all your profession's needs into consideration.
» Sorted your insurance needs? Follow these tips to grow your beauty business