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Hairdresser and Beauty Salon Insurance

Styling insurance to you: Why it's vital for hairdressers and beauty therapists get covered.

What you need to know

  • If you are someone who deals with members of the public everyday, you are at risk should anything go wrong .
  • Hairdresser, salon and beauty therapist insurance covers you financially for mistakes and damages.
  • Every insurance policy has its own set of exclusions, make sure you are covered for what you need.

What is salon business insurance?

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.

Hairdresser and Beauty Salon insurance quick tips

Insurance requirements

hair dryer

Professional Indemnity

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.

  • Required
  • $23

spa center

Public Liability

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.

  • Required
  • $23

injured person

Personal accident insurance

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.

  • Recommended
  • $74

Average cost based on historical costs using our engine. Last checked June 2024

What risks does it protect against?

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:

  • Law suits
  • Damaged or stolen property
  • Loss of revenue (under certain circumstances, see table below)

Here is a more detailed breakdown of the common risks facing salons and how business insurance reduces the risk.

ScenarioThe type of insurance you'll needAn exampleKeep in mind
An employee is injured at workWorker's compensationAn employee cuts themselves with a pair of clippersThis is mandatory insurance for any business that employs people, whether paid or unpaid (eg intern)
A customer has been injured on your propertyPublic liabilitySomeone slips in your shop and needs medical treatment for a broken ankleThere 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 productsProduct liabilityYou sell someone a bottle of shampoo that burns their scalp
Your advice or service has caused someone physical, emotional or monetary lossProfessional indemnityWhile bleaching someone’s hair, some of it gets into their eye causing them to need medical attentionThis 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 damagedProperty damageYour 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 stolenProperty theftThieves break in and destroy your property and steal your equipmentProperty damage (above), property theft and theft of money are often offered separately.
Your money is damaged or stolenTheft of moneySomeone steals your money or it is destroyed in a fire
Your glass storefront is broken or shatteredGlassYour glass storefront is shattered by a rock flying out from under a passing carUsually 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 temporarilyBusiness interruptionFire damages your business and you have to close for a few weeks while its repairedDamage 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 vehicleThird-party commercial motorYou crash your mobile salon into someone else's carThis is mandatory for any business that uses a vehicle for business purposes

Are all of the above required?

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:

  • Are you a contractor or a home-based business with no employees? You don't have a storefront to protect and your few pieces of equipment rarely leave your side. You can find packages offering only public liability, product liability and professional indemnity.
  • Are you a small business? Hey, you're just a corner barber shop with one employee. Your lease requires you to insure the building, but it wouldn't be the end of the world if someone stole a few sets of clippers. Protect yourself with what the contractor did and add worker's comp, property damage and glass insurance.
  • Are you a growing business? Now you've got some heavy-duty equipment and lots of cash coming in and out. Time to add property theft and theft of money.
  • Are you a franchise? You'll definitely need to talk to someone in this scenario, but rest assured, an insurer or a broker can certainly tailor a package to suit your needs.

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.

Who offers salon and hairdressers insurance?

There are a few places to get salon insurance:

  • General insurers. Most major insurers and a host of smaller ones offer business insurance, and they will work with you closely to create a custom policy.
  • Business insurers. These insurers specialize in insurance for many types of businesses, and can help tailor a customised solution specifically for your salon.
  • Specialised salon insurers. These insurers offer salon insurance and only salon insurance. They'll have a good understanding of what you need before you even talk to them, although you'll still need to spend some time going over your specific needs.
  • Brokers. These professionals will work with you to establish what you need for your business and then contact a host of business insurance providers on your behalf. They'll come back with a few options for you to compare.

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.

Talk to a broker about beauty salons and hairdressers insurance

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