How Much Does Hair Salon Insurance Cost? 2025 Rates

In 2025, U.S. hair salons can expect to pay between $420 and $1,320 annually for business insurance, averaging $35 to $110 per month. The primary cost drivers are location, services offered, number of employees, business size, coverage limits, and years in business.

How Much Does Hair Salon Insurance Cost?

The average hair salon in the U.S. pays between $420 and $1,320 per year for business insurance. That breaks down to roughly $35 to $110 per month. However, this is just a ballpark range and actual costs can vary widely depending on your specific situation.

Every hair salon has its own risks and insurance needs, so there’s no one-size-fits-all cost. A small salon with one stylist and basic haircut services will pay much less than a large salon that offers hair coloring, chemical treatments, and has multiple employees.

Things like the services you provide, how many people work for you, the value of your equipment, and where your salon is located all affect how much you’ll pay for insurance.

For example, salons in areas with higher crime or where lawsuits are more common may pay more for liability insurance. A salon that uses a lot of chemicals or heat tools may also pay more for property insurance due to the higher risk of accidents or fires compared to a simple barbershop.

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Services offered (affects overall risk)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your hair salon business.

Average Hair Salon Insurance Costs For Coverage Types

When it comes to protecting your hair salon business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan.

Here’s a closer look at the major coverages most hair salons need.

• General liability insurance: $35 per month
• Business owner’s policy: $74 per month
• Workers’ compensation insurance: $62 per month
• Commercial auto insurance: $142 per month
• Professional liability insurance: $46 per month

General Liability Insurance

The average cost of general liability insurance for a hair salon is about $35 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a stylist accidentally spills hair dye on a client’s expensive handbag, general liability insurance can help pay for the cost to repair or replace the damaged item.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost of general liability coverage include the business size, how well your building is maintained, how long you’ve been in business, and where your salon is located.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $74 per month for a hair salon.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to the salon’s building, furnishings, and equipment.

For instance, if an electrical fire starts from a styling tool and damages your salon’s walls, chairs, and hair dryers, a BOP can help pay for the repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

The price of a Business Owner’s Policy depends on several things, like how much your salon equipment and property are worth, where your salon is located, how many people you employ, and the type of services you offer.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a hair salon is around $62 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if a hairstylist suffers a wrist injury from repetitive motion or cuts themselves while using shears, workers’ comp would help pay for their medical treatment and cover a portion of their income while they recover and are unable to work.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform , your claims history, and any implemented safety programs.

Commercial Auto Insurance

The average cost of commercial auto insurance for a hair salon is about $142 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if a salon employee gets into an accident while driving a company car to deliver hair products or pick up supplies, this policy would cover the repair costs and any third-party liability claims.

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles.

Professional Liability Insurance

The average cost of professional liability insurance for a hair salon is about $46 per month.

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects hair salon businesses against claims of negligence, mistakes, or failure to deliver professional services as promised.

For example, if a client claims they suffered scalp burns from a chemical treatment gone wrong or had an allergic reaction to a hair dye, they may sue the salon for damages.

Professional liability insurance would help cover the legal costs and any potential payouts, even if the salon did nothing wrong.

What Factors Impact Your Hair Salon Insurance Costs?

Hair salon insurance premiums are carefully calculated by underwriters based on your salon’s unique risk profile. Factors such as the types of services you offer (like chemical treatments or waxing), the experience of your staff, your location, and your past claims history all play a role in determining what you’ll pay for coverage.

Type Of Services Offered

Salons that offer chemical treatments, waxing, or hot tools may face higher risks, which can increase insurance costs. Basic haircut-only salons usually have lower premiums.

Number Of Employees

More employees mean more chances of accidents or claims, which can raise your insurance cost. The type of work your staff does also matters.

Location Of The Salon

Salons in busy cities or high-crime areas might pay more due to higher risks of theft or property damage. Safer, quieter areas often come with lower premiums.

Claims History

If your salon has made insurance claims in the past, insurers may consider you a higher risk. This can lead to higher premiums compared to a salon with no claims.

Business Hours And Foot Traffic

Longer hours and more clients increase exposure to potential accidents. Salons that stay open late or are very busy may pay slightly more for coverage.

Business Property And Equipment

Expensive tools, furniture, and salon equipment increase your coverage needs. The more valuable your setup, the more you’ll likely pay for protection.

How To Lower Your Hair Salon Insurance Costs

Running a hair salon is expensive depending on the business size, but your insurance bill doesn’t have to break the bank. While you can’t eliminate the need for coverage, you can take smart steps to reduce your premiums without sacrificing protection.

Here are some practical ways to lower your hair salon insurance costs:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately.

If you also need workers’ compensation, bundling both through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Insurance companies often reward businesses that commit to a policy long-term. Ask your provider if they offer multi-year discounts for signing a two- or three-year agreement instead of renewing annually. You might also qualify for lower rates if you pay your premium in full instead of in monthly installments.

3. Implement Safety Measures

Accidents can be costly for both your salon and your insurance provider. Taking steps to prevent injuries to clients and employees can help reduce your general liability risk and lower your insurance premiums over time.

For example, installing non-slip mats near shampoo stations, using wet floor signs after cleaning, keeping walkways clear of cords and tools, and regularly maintaining salon equipment can all make your salon a safer place.

4. Create A Safe Working Environment

A strong safety program can help lower your salon’s workers’ compensation costs. This includes training staff on proper tool handling, safe lifting techniques for heavy equipment, fire safety procedures with hot tools, and keeping clear, accessible emergency exits.

5. Adjust Your Deductible

Your deductible is the amount you pay out of pocket before insurance coverage kicks in. Choosing a higher deductible can significantly reduce your monthly premiums. Just make sure you can comfortably cover that amount if a claim arises.

By taking these steps, you not only save money but also make your hair salon a safer, more resilient business.