Business insurance isn't legally required for hairdressers, but most commercial leases mandate public liability and industry bodies strongly recommend it.
Standard public liability often excludes treatment-related injuries like allergic reactions to hair dye, so you'll need treatment risk or professional indemnity cover for those.
Apprentices and assistants are usually covered under your policy while supervised, provided you disclose accurate staff numbers to your insurer.
Scissors and styling tools aren't covered outside the salon unless you add portable equipment or general property cover, useful for mobile stylists.
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.
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.
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$74
Average cost based on historical costs using our engine. Last checked May 2026
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.
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
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 specialise 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
Receive a Quote for Business Insurance
If you are ready to speak with a consultant about different business insurance options available, simply enter your details in the form. Keep reading if you want to learn more about the different types of cover available.
The cost of business insurance for a hairdresser or beauty salon varies significantly. Insurers consider several factors when calculating your premium. These include the size of your business, the services you offer, your annual turnover, your claims history, your business location and the level of cover you choose. It's best to get multiple quotes from different providers to compare prices and ensure you find a policy that suits your budget and needs.
Standard salon insurance policies often have specific exclusions for advanced beauty treatments such as laser hair removal, cosmetic injectables, tattooing or piercing. These services carry higher risks and usually require specialised cover.
If you offer these treatments, it is crucial to discuss them with your insurer or broker. You may need to add an extension to your existing policy, or take out a separate specialised policy to ensure you are fully covered for any claims arising from these services.
Even if you do not operate from a traditional storefront, you still face significant risks. As a mobile hairdresser or home-based beautician, you will typically need:
Public liability insurance to cover injuries to clients or damage to their property at their home or your home.
Professional indemnity insurance to protect against claims arising from your advice or services.
If you use your vehicle for business, third-party commercial motor insurance is mandatory.
If you rent a chair in an existing salon, you should clarify whether the salon's insurance policies extend to cover you as an independent contractor. Often, you will still need your own public liability and professional indemnity insurance to ensure you are personally protected.
Yes, typically your salon's public liability and professional indemnity insurance policies are designed to cover the actions of your employees while they are working on behalf of your business. This means if an employee causes an injury to a client or damages their property during their work, your policy would generally respond.
Worker's compensation insurance is a separate mandatory cover that protects your employees if they are injured or become ill as a direct result of their work. This is distinct from covering their liability for harm caused to clients.
Standard business insurance policies for salons often do not include cover for cyber attacks or data breaches. While some policies may have general exclusions for digital risks, the increasing reliance on online booking systems, client databases and payment processing means cyber security is a growing concern.
To protect your business from the financial impact of a cyber incident, you may need to consider a dedicated cyber liability insurance policy. This can cover costs associated with data breaches, system interruptions, legal expenses, regulatory fines and reputational damage.
If an incident occurs that you believe is covered by your salon insurance, it's important to act quickly. Here is a general guide on how to make a claim:
Contact your insurer or broker immediately. Notify them as soon as possible after the incident.
Gather all relevant information. This includes the date, time and location of the incident, details of anyone involved or who witnessed it and any evidence such as photos, videos or incident reports.
Do not admit liability. Avoid making any admissions or promises to affected parties.
Complete a claim form. Your insurer will provide you with the necessary forms to fill out.
Cooperate with your insurer. Provide any additional information or documentation they request to help them assess your claim.
Following these steps will help ensure a smoother claims process.
You should review your salon insurance policy at least once a year, ideally before your policy renewal date. This allows you to discuss any changes to your business with your insurer or broker and ensure your cover remains adequate.
You should also review your policy if there are any significant changes to your business operations. This includes adding new services, hiring more employees, purchasing new equipment, changing your business location, increasing your turnover or renovating your premises. Failing to update your policy could result in insufficient cover when you need it most.
Alex Reid is Finder’s business insurance cadet. He has a Master of Marketing from the University of Technology Sydney, with a background in business and sales. When not writing about business insurance for Finder he's a keen scuba diver, recently completed his 200th hour underwater and his PADI Divemaster certification. Before working at Finder he lived in Hangzhou China, where he studied Mandarin and Chinese culture.
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Liability insurance is a broad term that describes a few types of business insurance cover. The type you need will depend on the nature of your business.
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