What business insurance does a beauty salon need?
Protect your business and meet your legal requirements
Updated 10/27/26
Your salon helps clients look and feel their best. Unfortunately, one surprise expense – a curling iron that sparks a fire, a color treatment that triggers an allergic reaction or a client who slips on a wet floor – can put your whole business at risk. We believe in your business and want you to have affordable insurance that meets legal requirements and protects your property, team and income. This guide breaks down:
- The most recommended coverages for salons
- Coverages that may be legally required
- Some typical costs of beauty salon insurance
- How to save with fast quotes from top-rated insurance carriers
SHORT SUMMARY (because we know you're busy beautifying!)
- Beauty salons face client-injury, service-related and property risks that require customized coverage.
- Most salons start with a Business Owner's Policy, then add professional liability and workers' compensation.
- A Business Owner's Policy for salons can save you money by bundling general liability, property insurance and business interruption insurance.
- General liability insurance covers injuries and property damage you cause to clients and others, along with advertising-related claims.
- Property insurance helps repair or replace your salon, styling chairs, tools and product inventory.
- Business interruption insurance replaces lost income if covered property damage forces you to temporarily close.
- Professional liability covers claims that a service you performed caused harm, like a chemical burn or hair damage.
- Workers' compensation is required in nearly every state if you have employees.
- A commercial umbrella, cyber insurance and commercial auto offer added protection depending on how you operate.
- Working with Mylo can help you find the right coverage at the best value.
The 3 coverages most beauty salons need
Here are three essential coverages every salon owner should consider to stay protected and profitable:
1. Business Owner's Policy for salons
A business owner's policy (BOP) is a smart starting point for a hair salon. It bundles key coverages into one affordable package. Your BOP typically includes:
GENERAL LIABILITY FOR BEAUTY SALONS covers legal and medical costs if a client or visitor is injured – or their property is damaged – while in your salon. It also protects you from advertising-related claims. Examples:
- A client slips on a wet floor or trips over a cord
- Hair dye splashes onto a client's designer jacket
- A competitor accuses you of copying their branding
SALON PROPERTY INSURANCE helps repair or replace your space and equipment if disaster strikes – like fire, theft, or vandalism. Examples:
- A curling iron sparks a fire that damages your styling stations
- A break-in results in stolen tools and retail products
- A burst pipe floods your salon and ruins flooring and supplies
BUSINESS INTERRUPTION INSURANCE replaces lost income if you need to temporarily close your salon due to covered property damage.
Based on actual Mylo data, a Business Owner's Policy for a beauty salon typically costs $79–$161 a month. Not every salon qualifies for a BOP. If yours doesn't, standalone general liability typically costs $29–$61 a month.
2. Professional liability for salons (also called malpractice for estheticians)
This coverage is essential for beauty salons because general liability usually doesn't cover harm caused by the services you perform. Professional liability helps you pay legal costs if a client claims your work injured them or didn't deliver what was promised. Examples:
- A facial treatment causes a severe allergic reaction
- Lash extensions result in an eye infection
- A hair coloring session damages a client’s hair permanently
Based on actual Mylo data, professional liability for a beauty salon typically costs $42–$70 a month.
3. Workers' compensation for salons (required in most states)
Nearly every state requires workers' compensation if you have employees, whether they're full-time or part-time. The exact rules vary by state. This coverage provides medical care and replaces lost wages for staff injuries and shields you from most employee lawsuits. Examples:
- A stylist burns her hand on a curling iron
- A nail technician develops a respiratory issue from chemical fumes
- A colorist develops carpal tunnel syndrome from repetitive motion
Based on actual Mylo data, workers' compensation for a beauty salon typically costs $42–$59 a month.
Ready to get your free quote now and see how much you can save on these and other coverages you may need?
Depending on your salon, you may also want:
1. Commercial umbrella insurance for beauty salons
Think of this as insurance for your insurance! A commercial umbrella policy provides extra protection when other key policies such as your general liability reach their limits – helpful when one serious client injury could lead to a very large claim.
Based on actual Mylo data, a commercial umbrella policy typically costs $33–$107 a month.
2. Cyber insurance for salons
If you use online booking, store client data or sell gift cards, you're at risk for cyberattacks. Cyber insurance helps you recover from data breaches, pay regulatory fines and manage PR fallout. Examples:
- Hackers access your client database
- A phishing email exposes employee payroll info
Based on actual Mylo data, cyber insurance typically costs $46–$129 a month.
3. Commercial auto for beauty salons
If you offer mobile services – like on-location bridal styling – or use vehicles to pick up supplies, commercial auto insurance covers damages or injuries your vehicles cause.
- Helps pay for damages or injuries your vehicles cause to others or their property
- Can also pay for physical damage to your vehicles (optional)
These coverages may be legally required:
Requirements depend on your state, so make sure you're covered before you hire your next stylist:
1. Workers' compensation (required in most states )
Nearly every state requires workers' compensation if you have employees, providing medical care and lost wages for injured staff. Some states set a minimum number of employees.
Based on actual Mylo data, workers' compensation for a beauty salon typically costs $42–$59 a month.
2. Commercial auto (required if you use vehicles for business)
If you use company-owned or personal vehicles for business, such as traveling to clients for on-location services, your state requires auto liability coverage for damages or injuries your vehicles cause.
Mylo makes it easy to make a smart decision
Your amazing company deserves protection that keeps up with your business. Mylo has been innovating insurance for 10+ years and provided 100,000 policies to 75,000+ small business owners. Because we don't sell our own insurance, we can give you an objective recommendation and find you the best value from top carriers – at no cost to you.
In minutes Mylo will:
- Recommend the right coverage for your beauty salon
- Compare quotes from top-rated insurance carriers
- Find you the best combination of coverage and price
- Keep you feeling confident about growing your business!