How Much Does Hair Salon Insurance Cost? 2026 Rates

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 business insurance 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.

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

Business Owner’s Policy (BOP)

Hair salons pay an average of $74 per month for a business owner’s policy.

A BOP combines general liability coverage with commercial property insurance in one package. It can cover customer injuries, accidental property damage, and loss or damage to your salon equipment, décor, or building.

For example, if a curling iron sparks and causes smoke damage to chairs, flooring, or dryers, a BOP may help cover repair and replacement costs.

Typical liability limits are $1 million per occurrence and $2 million aggregate, while property limits depend on what you insure.

Pricing varies based on the value of your styling tools and furnishings, the services you perform, where your salon operates, and how many people you employ.

Note: Estimates reflect typical annual BOP premiums for hair salons based on market-average agency pricing; actual premiums will vary with location, revenue, services offered, claims history, and coverage limits

General Liability Insurance

General liability coverage for hair salons averages about $35 per month.

This insurance helps protect your business if a customer or visitor is hurt or if property is damaged during salon services. It can also respond to claims involving advertising harm.

One example might be a stylist spilling hair color onto a client’s designer coat or handbag. General liability insurance could help pay for cleaning, repair, or replacement, as well as legal costs if needed.

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

Costs depend on the size of your salon, condition of your workspace, years in business, and the local risk profile of your area.

Note: Estimates are based on typical annual general liability premiums for hair salons and similar small businesses; actual premiums will vary with location, services offered, revenue, claims history, and coverage limits

Professional Liability Insurance

Professional liability insurance for salons costs about $46 per month on average.

This type of insurance protects against claims that a service caused harm due to a mistake, poor results, or improper technique. It is especially important for services involving chemicals, dyes, perms, and specialty treatments.

For example, if a customer experiences scalp irritation from a coloring service and claims negligence, professional liability can help cover legal defense and settlement costs.

Note: Estimates are based on market-average annual professional liability (E&O) premiums across small and large agencies; actual premiums will vary with services offered, revenue, claims history, and coverage limits

Workers’ Compensation Insurance

Workers’ compensation insurance for salons averages around $62 per month.

It covers medical care, lost wages, and recovery support for employees injured while working. This may include repetitive wrist strain, slip-and-fall injuries, or accidental cuts.

Requirements and coverage amounts are set by each state.

Premiums are affected by payroll totals, employee job duties, prior claims, and safety practices. If stylists are booth renters or independent contractors, coverage needs may differ from employee-based salons.

Note: Estimates reflect typical annual workers’ compensation premiums for hair salon operations across market-average agencies; actual premiums will vary with payroll size, employee classifications, claims history, and state-specific rules.

Commercial Auto Insurance

Hair salons that use vehicles for business activities pay about $142 per month for commercial auto insurance.

This coverage protects against vehicle damage, theft, collisions, and liability for injuries or property damage.

For example, if a staff member drives a salon-owned car to deliver hair products or pick up supplies and gets into a crash, commercial auto coverage would help with repairs and third-party claims.

Costs depend on vehicle type, usage, mileage, driver records, and whether you add coverage for employee-owned vehicles through HNOA.

Note: Estimates reflect market-average annual commercial auto premiums for hair salon operations; actual premiums will vary with fleet size, vehicle use, driving records, coverage limits, and underwriting factors.

Hair Salon Business Insurance Costs By Provider

Hair salon business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: Estimates are based on average annual premiums for hair salon businesses; actual premiums will vary by location, services, revenue, claims history, and coverage limits

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 Hair Services Offered

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

It is not uncommon for hair salons to offer several other services like:

• Nail services
• Massages
• Facials 
• Float tanks

If your hair salon adds these additional services, you may need to change your existing policy with things like product liability or malpractice coverage for facial treatments, additional coverage to protect against chemical exposure or ventilation issues for nail services, even additional policies or higher coverage limits for things like makeup applications and retail sales.

Note: As you add services, you increase your risk so always review your policy when you add or remove services from your hair salon.

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. As noted, hair salon insurance will also fluctuate based on how stylists and other employees are legally categorized. Consider if you have independent stylists who rent a chair versus full time staff.

Location Of The Salon

Salons in busy cities or high-crime areas might pay more due to higher risks of theft or property damage. Similarly, hair salons in upscale areas may face higher risks of being sued if a client doesn’t like the results.

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.

If your salon has a history of things like slip and fall accidents, chemical burns, or allergic reactions, these can stay on your record for several years resulting in higher premiums. For that reason it is important to try and keep a clean record for as long as possible.

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.

Credit Score

As a salon owner, if you have a good credit profile it can give you discounts averaging 30% lower than a hair salon owner with a poor credit profile. The longer you have maintained a high credit score, and the lower you have had claims filed against your hair salon, the more likely it is that Insurance underwriters will see you as a financially stable business.

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.