How Much Does Barber Shop Insurance Cost? 2025 Rates

U.S. barber shops can expect to pay between $420 and $600 annually for comprehensive business insurance, averaging $35 to $50 per month. The primary cost drivers of barber insurance are your shop’s location, coverage limits, number of employees, services offered, and the value of your equipment.

How Much Does Barber Insurance Cost?

The average barbershop in the U.S. pays between $420 and $600 per year for basic barber insurance, which comes out to around $35 to $50 per month. However, this is just an estimate, and the actual cost can change based on your specific situation.

Every barbershop has different risks and insurance needs, so there’s no one-size-fits-all price. A solo barber in a small town with simple equipment will pay much less than a busy barbershop with several employees and high-end tools.

Things like your location, the number of barbers you employ, the services you offer, and the value of your equipment can all affect your business insurance cost. For example, shops in areas with higher crime rates may pay more for property coverage, and those with more staff will likely need additional coverage like workers’ compensation.

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• 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 barber shop.

Average Barber Shop Insurance Costs For Coverage Types

When it comes to protecting your barbershop, 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 barbershops need.

• General liability insurance: $35 per month
• Business owner’s policy: $63 per month
• Professional liability insurance: $54 per month
• Workers’ compensation insurance: $76 per month
• Commercial auto insurance: $141 per month

General Liability Insurance

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

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a customer trips over an electrical cord in your barbershop and injures their wrist, this insurance would help cover their medical bills and any legal fees if they decide to sue.

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

Factors that influence the cost of barber shop insurance include the shop’s size, location, number of customers served daily, past insurance claims, and whether higher-risk services like straight razor shaves or chemical treatments are offered.

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

Note: These estimates are based on average annual premiums for barber shop businesses, compiled from both national carriers and regional insurance agencies. They reflect typical coverage limits for small-to-medium shops, considering risks such as customer injury, property damage, and liability tied to grooming services. Actual premiums will vary depending on shop size, number of employees, claims history, services offered (e.g., haircuts, shaves, beard grooming), and state-specific regulations.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $63 per month for barbershops.

A Business Owner’s Policy (BOP) bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to the barbershop’s building, furniture, and equipment. For example, if an electrical fire damages your barber chairs and hair dryers, the BOP would help cover the cost of 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.

Barbershop insurance costs can be affected by things like the value of your shop and equipment, the risk level of your location (such as high crime or flood areas), how much money your business makes, how many employees you have, and any extra coverage you choose, like protection for lost income if your shop has to close unexpectedly.

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

Note: These estimates reflect average Business Owner’s Policy (BOP) premiums for barber shop businesses, which typically combine general liability and commercial property coverage. Figures account for industry-specific risks such as client injury claims, professional liability exposures, equipment damage, and property coverage for shop spaces. Actual premiums will vary depending on shop size, number of employees, services offered, location, coverage limits, and claims history.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a barbershop is around $76 per month.

Workers’ compensation covers medical bills, lost wages, and recovery costs if an employee gets hurt while working. For example, if a barber cuts their hand while using clippers and needs medical treatment, workers’ comp would help pay for their doctor visit and some of their lost income while they heal.

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.

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

Note: These estimates are based on average annual Workers’ Compensation premiums for barber shop businesses, incorporating state-specific base rates, employee classifications, and payroll ranges typical of both small independent barbershops and larger multi-chair establishments. Actual premiums will vary depending on your shop’s size, claims history, number of employees, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for a barbershop is about $141 per month.

Commercial auto insurance covers vehicles owned or used by the barbershop for accidents, theft, vandalism, or damage. For example, if a barber uses a company van to pick up supplies and gets into a car accident, this insurance would help pay for the vehicle repairs and any injuries or damages to others involved.

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

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

Note: These estimates reflect average annual premiums for barber shop businesses that may operate small commercial vehicles such as sedans, SUVs, or vans used for supply runs, mobile barber services, or staff transport. Rates are based on blended averages from both small and large agencies, incorporating regional risk exposure, liability coverage levels, and typical usage patterns unique to personal care businesses. Actual premiums will vary depending on fleet size, driving history, geographic territory, and insurer underwriting practices.

Professional Liability Insurance

The average cost of professional liability insurance for a barbershop is about $54 per month.

Professional liability insurance covers claims related to mistakes or negligence in the services provided by your barbershop. For example, if a customer claims that a barber caused a skin reaction from using the wrong product or gave a haircut that led to emotional distress, this insurance would help cover legal costs, settlements, or judgments related to the claim.

The cost of professional liability insurance for a barbershop depends on several factors, including the coverage limits you select, the size of your shop, your history of past claims, and the specific services you offer.

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

Note: These estimates are based on average annual premiums offered by both small and large insurance agencies for barber shop businesses. Actual premiums will vary depending on factors such as shop size, number of barbers, claims history, coverage limits, and regional underwriting practices.

Barbershop Business Insurance Costs By Provider

Barbershop 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 barbershop businesses, considering both small and large agencies. Coverage typically includes general liability, professional liability, business owner’s policy (BOP), property insurance, and workers’ compensation. Actual premiums will vary depending on factors such as services offered (e.g., haircuts, beard grooming, chemical treatments), location, number of employees, claims history, and coverage limits.

What Factors Impact Your Barber Insurance Costs?

Barbershop insurance premiums are set by insurance companies based on the specific risks your shop may face. From your services to your shop’s size and location, many factors affect how much you’ll pay for coverage.

Type Of Barbershop Services

Different services come with different levels of risk. A basic haircut-only shop may pay less than one offering straight razor shaves, hair coloring, or chemical treatments, which carry a higher chance of injury or damage.

Location

If your barbershop is in a high-crime area or somewhere prone to natural disasters like floods, you’ll likely pay more for property and liability insurance. Shops in low-risk or quieter areas usually pay less.

Size Of Your Shop

Bigger shops with more chairs, more customers, and more employees often face higher insurance costs. More space and staff increase the chances of accidents or claims.

Value Of Property And Equipment

If your shop has expensive barber chairs, clippers, and grooming tools, your property insurance cost will be higher. Some barbershops also add coverage for equipment breakdown or theft.

Claims History

If you’ve made several insurance claims in the past, your premium may go up. Shops with a clean claims history are often rewarded with lower rates or discounts.

Insurance Provider

Different insurance companies offer different prices and coverage options. Some specialize in barber or beauty businesses, so shopping around and comparing quotes can help you find the best deal.

How To Lower Your Barber Insurance Costs

Running a barbershop can be expensive, 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 barber 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 barbershop and your insurance provider. Taking steps to make your shop safer can help reduce the risk of injuries and may lower your insurance premiums over time. For example, installing non-slip mats, using wet floor signs after mopping, keeping walkways clear of cords and clutter, and regularly checking and maintaining your equipment, like clippers and chairs, can reduce the chance of customer or employee accidents and help keep your general liability costs down.

4. Create A Safe Working Environment

A strong safety program can help lower workers’ compensation costs for your barbershop. This includes training your staff on proper tool handling, safe cleaning practices, how to lift heavy items correctly (like salon chairs or boxes), and having clear emergency exit routes. When your team knows how to work safely, there are fewer accidents and injuries, leading to fewer insurance claims and lower premiums over time.

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 barbershop a safer, more resilient business.