Hair salon insurance is a type of business insurance designed to protect hairstylists, barbers, and salon owners. It protects them from risks such as client injuries, property damage, professional errors and equipment loss.
Whether you are a hairstylist or barber, a contractor, or a salon owner, it’s important to have the right type of coverage to meet your unique needs. Unfortunately, there’s a lot of potential for things to go wrong at a salon. Given the sheer number of chemicals and products used, liability claims are a real concern. If you work in the personal care and beauty industry, hair salon insurance can be tailored to your specific needs. Let’s learn more below.
What Is Insurance for Hair Salons?
Hairdresser or hair salon insurance policy packages are specially designed to protect hair stylists and salons against specific risks associated with providing hairdressing services. This includes equipment and treatment-related accidents and injuries. No matter how careful you are or skilled you are at your job, there’s always the possibility of an accident or unforeseen event that can cause injury or property damage. If this happens, it can result in a lawsuit that leaves you liable for settlements to cover medical costs, replacement for damaged property, legal fees and more. Those expenses can be very high and have a significant financial impact that can take years, or even decades, to recover from.
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Who Should Have Hair Salon Coverage?
If you work in the hairdressing industry, it’s important to ensure you have full coverage with the right salon insurance policy. Protecting your business from potential risks that can lead to financial loss should be a top priority. Individuals who should consider this type of coverage include:
- Owners of hair salons
- Hair stylists
- Barbers
- Hairdressers
- Nail technician
- Beauty services
- Hair colourists
- Aestheticians
- Mobile hair service providers
What Does Hair Salon Insurance Cover?
Whether you’re the owner of a hair salon, rent a chair in a salon, or a freelance mobile hair stylist, you need an insurance package that suits your unique needs. The right coverage can protect hair stylists and salons against risks specific to providing hairdressing services, mainly equipment- and treatment-related accidents or injuries.
Hair salon liability insurance is a policy that protects hair salons and hair stylists against common risks. The bundle may contain:
Professional Liability Insurance (E&O)
The fact that hair stylists, barbers, colourists, and other hair professionals work directly with parts of their clients’ bodies makes professional liability insurance possibly the most necessary component of a comprehensive Ontario hair salon insurance policy. Errors & Omissions (E&O), also known as salon malpractice insurance, protects you and your business from claims alleging that they are suffering financial losses. These losses may result from professional negligence, bad advice, misconduct, failure to deliver a promised service, advertising injury, or breach of contract.
Commercial General Liability Insurance (CGL)
Commercial general liability insurance is the most important insurance product for businesses. The negative impact that a lawsuit can have on your business has become a very real concern for owners. This coverage exists to offer you liability protection if you find yourself being sued for allegedly causing third-party bodily injury, third-party property damage or personal harm. Your CGL insurance steps in to cover costs pertaining to the lawsuit, such as legal defence fees when you’re forced to defend yourself in court. It also covers settlement costs up to your policy limit should you be sued successfully.
Contents Insurance
Contents insurance coverage is also known as commercial property insurance. It provides coverage for your business property and all of your contents. With this coverage, you will be protected if your property or equipment is damaged by unexpected events, such as fire, theft, vandalism, or natural disasters.
What Additional Coverage Should Salon Owners Consider?
Product Liability Insurance
If your salon sells products, your Commercial General Liability policy can cover any product liability claims. In the event of a manufacturing error or chemical imbalance in these products, you can be held responsible for the injury or illness your client experiences. Product liability coverage will help protect your business financially, so you won’t have to suffer from the manufacturer’s mistake.
Business Interruption Insurance (BI)
If your commercial location suffers damage or its contents are lost, you will have no choice but to stop taking clients. While you’re waiting, the interruption in your revenue can spell serious trouble for your bottom line. Business Interruption insurance will provide financial assistance to help you recoup your loss of income and take care of other expenses. These may include employee wages, so you can get back on your feet as soon as possible and do what you do best.
It’s worth noting that business interruption coverage typically does not apply to government-mandated closures for infectious disease control.
Equipment Breakdown Insurance
As a business in the beauty and personal care industry, you might rely on pressurized, mechanical or electrical equipment in your day-to-day operations. Equipment breakdown insurance may cover losses resulting from the accidental breakdown of equipment instrumental to running your business. This coverage is one you won’t want to miss in your Hair Salon Insurance policy.
Home-Based Business Insurance
If you’re working from home for your hairdresser business, home-based business coverage is what you’ll need. It can also include protection for business interruption to help you recover lost income if you need to close your business to address property damage or theft.
Cyber Liability Insurance
If you have a proprietary product line, your computer and services might also be at risk of cybercrime. Criminals can hack into your systems and hold your data for ransom until you pay the full amount. Cyber Insurance can also protect your company if you allow customers to pay online and save their credit card details.
Commercial Auto insurance
If you often have employees driving to different destinations for their service, consider commercial auto insurance. If your employee(s) were to get into an accident on the way, your insurance will be able to cover the cost of repairs for the vehicle. Workers’ compensation insurance will cover the employee’s lost wages and any medical bills that may be incurred.
Special Considerations
Hair Salon Owners
As a hair salon owner, you are responsible for several different hairstylists working for you, either full-time or part-time. This means that you pay their salary, vacation and sick days as legally required. If you allow independent contractors to rent a booth and tools, as the hair salon owner, you now have business and third-party claims risk, too. Any third-party claims for injuries like slip-and-fall can end up costing you a lot of money in legal fees and settlements. As your business has more money than the independent contractors you hire, the third parties will sue your business first. Additionally, customers can claim that staff are not providing the service they paid for – for example, the wrong haircut or damage to their hair while colouring. Your salon can be sued for that, as well.
Hairstylist Insurance
If you work on your own or are self-employed, or rent a booth at a salon where you don’t work permanently, you’ll need hairstylist insurance for hairstylists. Commercial General Liability and Professional Liability won’t typically cover independent contractors. So you can be held responsible for injuries or damage, much like a small-business owner. Even if the salon owner does not require you to purchase your own insurance, you should still consider it to protect yourself. Hairdresser insurance covers self-employed hairstylists against professional liability claims.
Mobile Hairdressers
Some hairdressers move from salon to salon. As a salon owner, you may invite a well-known hairdresser to your salon to increase sales for a week or a month. This temporary employee will be covered under the hair salon insurance by extending your coverage to them. Mobile hairdressers may want to ensure that they are covered under a separate hairdresser insurance policy. It offers mobile hairdressers more control over their protection.
How Much Does Hair Salon Insurance Cost In Ontario?
Hair salon insurance can range from $450 to $3,500 per year. Your premiums depend on a lot of different factors, including the type of activities that you provide. Some activities are riskier than others. Higher revenue can lead to higher premiums because you can get sued for a larger amount.
Some of the factors your insurer will look at include:
- Business location
- Type of business
- Beauty services you offer
- Insurance claims history
- Number of employees
- Annual revenue
- Business practices
Frequently Asked Questions About Hair Salon Insurance
Is Hair Salon Insurance Mandatory?
Hair salon insurance is not a legal requirement in Ontario. With this being said, it is highly recommended to have it in order to protect against liability and financial loss.
What Coverage Is Most Important For Hair Salons?
Professional liability insurance is the most important type of coverage for hairdressers as it protects against claims related to mistakes. With this being said, many types of coverage are important.
Can Mobile Hairdressers Get Insurance?
Yes, mobile hairdressers can get insurance. These specialized insurance policies will protect them across multiple locations, and if they are only at a salon for a month or so.
How Much Does Hair Salon Insurance Cost?
Hair salon insurance can range from $450 to $3,500 per year. With this being said, the exact price will depend on a variety of factors such as location and the services you offer.
Hair Salon Insurance: Final Thoughts
There is no such thing as a one-size-fits-all solution when it comes to Hair Salon insurance, or any insurance for that matter. Each individual chooses to run their business and provide services in their own unique way. This means you’ll need unique Hair Salon Insurance coverage that addresses the common risks you’re most likely to encounter. Our isure brokers have the expertise to determine the best options for your Hair Salon Insurance. We’ll offer you clear recommendations so you can choose the best protection for your hair styling operations. Making your customers look and feel good is your top priority. Let isure help you to feel good about your insurance coverage!
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