How Much Does Business Insurance Cost For Cosmetologists? 2025 Rates

U.S. personal care and cosmetology businesses can expect to pay between $480 and $840 annually for comprehensive business insurance, averaging $40 to $70 per month. The primary cost drivers are the services offered, business size, location, coverage limits, claims history, and experience level.

How Much Does Personal Care & Cosmetology Insurance Cost?

In the U.S., salons, spas and other personal care businesses typically spend around $480 to $840 a year for complete business insurance, which works out to about $40 to $70 each month. However, the exact cost can vary a lot depending on factors like your location, services, and size of your business. 

If you run a salon, spa, or other personal care business, having the right insurance is important to protect your business from accidents, property damage, or legal claims. 

Many business owners wonder how much this insurance will cost. The price can vary depending on factors like the size of your business, the services your offer, and your location. Understanding the typical costs can help you plan your budget and choose the right coverage. 

Here are some of the biggest cost drivers:

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

Knowing these factors can help you figure out what insurance coverage your salon or spa really needs and give you a clearer idea of what it will cost to keep your business protected. 

Average Personal Care & Cosmetology Insurance Costs For Coverage Types

If you run a personal care business, it helps to know how much different types of insurance usually cost. Each type of coverage protects your business in a different way, and the price can vary depending on your staff, services, and location. Looking at the average costs for common insurance types can help you plan your budget and choose the right protection for your business. 

• General liability insurance: $40 per month
• Business owner’s policy: $80 per month
• Workers’ compensation insurance: $61 per month
• Commercial auto insurance: $141 per month
• Professional liability insurance: $54 per month

General Liability Insurance

The average cost of general liability insurance for a personal care and cosmetology business is about $40 per month.

General liability insurance is an important policy for salons, spas, or other personal care businesses. It protects your business if a client or visitor gets hurt on your property or if you accidentally damage someone else’s belongings.

It also protects you from claims related to advertising mistakes, like using someone else’s photo or slogan without permission. This insurance helps your business handle common risks and avoid large financial losses. 

Several factors impact the costs including, the size of the salon or spa, its location, the number of clients served, past insurance claims, and whether high-risk services like chemical treatments, waxing, or microblading are offered.

Policy limits: $1 million per occurrence and $2 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums for personal care and cosmetology businesses from both national carriers and regional insurance agencies. They reflect typical coverage limits for small-to-medium operations offering services like hair, nail, makeup, and basic skincare. Actual premiums will vary by location, services offered (e.g., chemical treatments, microblading), claims history, revenue, staff count, and whether additional coverages (like Professional Liability or a Business Owner’s Policy) are bundled with General Liability.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $80 per month for personal care and cosmetology.

A BOP is a convenient insurance package designed for small to medium personal care cosmetology businesses, like salons and spas. It combines several important coverage into one policy, usually at a lower cost than buying them separately. 

Several factors impact the cost including the property value, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like business interruption insurance.

Overall, a BOP makes it easier and more affordable for personal car businesses to get essential protection in one package. 

Policy limits: $1 million per occurrence and $2 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on typical Business Owner’s Policy (BOP) pricing observed for personal care and cosmetology businesses (combining general liability and commercial property) and reflect averages across small and larger agencies; actual premiums will vary by services offered, location, payroll/employee count, coverage limits, property value, and claims history

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a personal care & cosmetology is around $61 per month.

Workers compensation helps protect your employees and your business if someone gets hurt or sick while working. Most states require this insurance if you have employees. It keeps your team safe and ensures your business isn’t hit with big costs from workplace injuries. 

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

If a hair salon or other personal care business has employees, they usually have to buy this insurance to follow state laws and avoid fines. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Workers’ Compensation premium patterns for personal care and cosmetology businesses, drawing on typical state rate differentials, common employee classifications (e.g., cosmetologist, esthetician, assistant), and ranges seen across both smaller local agencies and larger national carriers. Actual premiums will vary depending on your business’s payroll size, number of employees, services offered, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for a personal care and cosmetology business is about $141 per month.

Commercial auto protects your business vehicles and drivers if they are involved in an accident. This is important for salons, spas, or other personal care businesses that use cars or vans for deliveries, mobile services, or transporting staff and clients.  

Having commercial auto insurance ensures that your business is protected from the costs of accidents involving company vehicles. 

Several factors impact the cost of commercial auto insurance, such as the coverage limits you choose, the types of coverage included (like collision or comprehensive), the value and number of business vehicles, and the driving records of employees allowed to drive them, 

In most states, personal care businesses must have insurance for vehicles they own. If your business uses personal, leased, or rented vehicles, you’ll need hired and non-owned auto insurance (HNOA) to make sure those vehicles are covered. 

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates reflect blended annual commercial auto premiums for personal care and cosmetology businesses that operate small service vehicles (vans, sedans, light trucks) and combine pricing trends from both small and large agencies; they account for regional risk differences, typical vehicle usage for client visits and product runs, and common liability limits. Actual premiums will vary based on fleet size, driving records, coverage selections, and insurer underwriting practices

Professional Liability Insurance

The average cost of professional liability insurance for a personal care and cosmetology business is about $54 per month.

Professional liability insurance protects personal care or cosmetology business if a client claims that a service caused them harm or didn’t turn out as expected. 

It’s especially important for beauty professionals who provide hands-on services, as it helps protect your business from costly mistakes or claims. 

The cost factors include the type of services you offer, location, experience and training, employee count, and business size.

Policy limits: $1 million per occurrence and $1 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on typical annual premiums offered by both small and large insurance agencies and reflect state-level market conditions for personal care and cosmetology businesses. Actual premiums will vary depending on factors such as business size, number of practitioners, claims history, chosen coverage limits, endorsements, and regional underwriting practices.

Personal Care and Cosmetology Business Insurance Costs By Provider

Personal care and cosmetology business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for personal care and cosmetology businesses, considering both small and larger agencies and typical coverages such as general liability, professional liability, business owner’s policies, property, and workers’ compensation. Actual premiums will vary depending on services offered, location, number of employees, claims history, and coverage limits.

What Factors Impact Your Personal Care & Cosmetology Business Insurance Costs?

The cost of insurance for salons, spas, and other personal care businesses can vary a lot. Many different factors affect how much you’ll pay. Understanding these factors can help estimate your insurance costs more accurately and make sure your business has the right protection.

Type Of Services Offered

Different beauty services carry different levels of risk. A salon offering basic haircuts and styling will usually pay less than a spa offering chemical peels, laser treatments, or microblading. Riskier services often mean higher insurance costs.

Use Of Chemicals And Tools

If your business uses strong chemicals (like hair dyes or skin treatment products) or expensive equipment (like lasers or facial machines), your insurance premium may be higher. These increase the chance of injuries, allergic reactions, or equipment damage.

Location

If your salon or spa is in an area with high crime, frequent lawsuits, or natural disasters (like floods or storms), your property and liability insurance will likely cost more. A quiet, low-risk neighborhood may help lower your rates.

Size Of Your Business

Larger salons with more employees, treatment rooms, or high customer traffic usually pay more for insurance. More staff means higher workers’ comp costs, and more space and equipment mean higher property coverage.

Value Of Property And Equipment

If your salon has high-end furniture, tools, or machines (like massage chairs, styling stations, or laser equipment), it will cost more to insure. Many businesses add extra protection like equipment breakdown or theft coverage.

Claims History

If you’ve had many insurance claims in the past, like client injuries, allergic reactions, or property damage, insurers may charge you more. A clean claims record can help you get discounts.

Policy Limits And Deductibles

Choosing higher coverage limits gives your business more protection but raises your premium. If you choose a higher deductible (what you pay before insurance kicks in), your monthly cost can go down, but you’ll pay more out of pocket if something happens.

How To Lower Your Personal Care & Cosmetology Insurance Costs

Insurance for personal care and cosmetology can be expensive, but there are ways to lower the cost. Knowing that costs can be managed and understanding how insurance works can help business owners plan their budget and protect their business without overspending. 

1. Policy Bundles

Combining multiple insurance policies into one package, such as a Business Owner’s Policy (BOP), can often save money compared to buying each policy separately. It’s also simpler to manage. 

2. Increasing Your Deductible

A deductible is the amount you pay out of pocket before insurance helps cover a claim. Choosing a higher deductible usually lowers your monthly or yearly premiums, though you’ll pay more if a claim happens. 

3. Reviewing Coverage Annually

Checking your insurance each year helps make sure you’re not paying for coverage you don’t need and that you have enough protection if your business changes. 

4. Reduce Risks

Making your salon or spa safer can lower insurance costs. Examples include installing fire alarms, security cameras, proper sanitation, and staff training to prevent accidents. 

5. Shopping Around For Coverage

Comparing quotes from different insurance providers helps you find the best price and coverage for your business. Rates and policies can vary, so it’s worth looking at multiple options.