Your business risks are unique to you depending on the industry you’re in, the services you offer, your physical location and your personal needs. When business insurance is customised to protect you against your unique risks as a salon owner, it becomes known as salon insurance - it's that simple!
Maybe your salon allows clients to "build their own package". Well, that's kind of how business insurance works. You can choose exactly how much you need of only those things you need, and ignore the rest.
And like a great salon owner might do, insurers and brokers will ease the burden by consulting you through the process.
As a service provider, you need protection if something about that service goes wrong. PI insurance protects you if you injure someone during a treatment, or if they injure themselves after following any of your advice.
If you have a salon, or physical shop, someone could get injured on your property - like if they slipped on a spillage. Public liability insurance protects you from situations like these.
What would you do if an injury meant you couldn’t hold a pair of sheers? Personal accident insurance gives you a source of income if you can can’t work temporarily as a result of an accident.
Average cost based on historical costs using our engine. Last checked December 2024
The purpose of salon insurance is to protect your hair or beauty salon from unexpected financial burden that could jeopardize an otherwise healthy business. That means it won't protect you from losing business due to bad management practices, but broadly speaking, it will protect from the following:
Here is a more detailed breakdown of the common risks facing salons and how business insurance reduces the risk.
| Scenario | The type of insurance you'll need | An example | Keep in mind |
|---|---|---|---|
| An employee is injured at work | Worker's compensation | An employee cuts themselves with a pair of clippers | This is mandatory insurance for any business that employs people, whether paid or unpaid (eg intern) |
| A customer has been injured on your property | Public liability | Someone slips in your shop and needs medical treatment for a broken ankle | There is some overlap among these two and professional indemnity(below). We explore these differences in more detail later in the article. |
| A customer has been injured by one of your products | Product liability | You sell someone a bottle of shampoo that burns their scalp | |
| Your advice or service has caused someone physical, emotional or monetary loss | Professional indemnity | While bleaching someone’s hair, some of it gets into their eye causing them to need medical attention | This may not cover certain specialised services like hair removal, Botox injections, tattoos or piercings. If you want to have these services covered, you may be required to pay an additional premium |
| Your property is damaged | Property damage | Your building and equipment are destroyed by fire. | This covers both the building and its contents (excluding glass, see below). Commercial leases often require the tenant to organise building insurance, which is why building and contents insurance are usually bundled together. |
| Your property is stolen | Property theft | Thieves break in and destroy your property and steal your equipment | Property damage (above), property theft and theft of money are often offered separately. |
| Your money is damaged or stolen | Theft of money | Someone steals your money or it is destroyed in a fire | |
| Your glass storefront is broken or shattered | Glass | Your glass storefront is shattered by a rock flying out from under a passing car | Usually also covers signs and showcases, and will often cover additional costs like repairing frames and fittings or replacing sign-writing |
| You can't earn revenue because you have to unexpectedly close the shop temporarily | Business interruption | Fire damages your business and you have to close for a few weeks while its repaired | Damage from the fire would be covered under property insurance, whereas the loss of revenue would be covered here |
| You cause a traffic accident with your mobile salon's vehicle | Third-party commercial motor | You crash your mobile salon into someone else's car | This is mandatory for any business that uses a vehicle for business purposes |
The only insurance you are required to have is worker's compensation if you have employees and third-party commercial motor if you use a vehicle for business purposes. That said, it's easy to see why some of the other insurance types are a necessary part of protecting your business.
Since it’s a "build your own package" type of situation, you can choose whatever cover you want, at any level you want. In fact, it makes sense for business of different lengths and textures to take out packages of different lengths and textures.
While we recommend talking to an insurer first, here some common ways insurance can be packaged:
Keep in mind, these are only basic examples. Every business is different, so make sure you do your research and talk with an insurer or a broker before purchasing insurance for your salon.
There are a few places to get salon insurance:
Our money is on the specialised salon insurers or the brokers.
You'll spend less time explaining your industry to a salon insurer, meaning you'll have time to talk to a few. Plus, they'll have loads of experience dealing with salon-related claims, reducing any friction you might experience when it's your time to claim.
Going with a broker is also a good choice, because you only have to explain your needs once, but you'll receive multiple quotes. That's a huge time savings, especially if you're a franchise or you operate in multiple locations.
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