Personal Care, Beauty And Cosmetology Insurance (2025)

Business insurance for personal care and cosmetology helps protect you and your clients. For example, if a client slips on water or a product in your salon and gets hurt, your insurance can help cover their medical costs. It also protects you if a client claims you made a mistake during a treatment or if there’s an accident at your workplace. This kind of insurance helps cover legal fees, accidents, and other problems so you can keep your business running smoothly.

Why Do Personal Care Businesses Need Insurance?

Personal care and cosmetology professionals need insurance because accidents can happen at any time, and without insurance, those accidents can be very expensive.

For example, imagine you accidentally spill hair dye on a client’s expensive clothing or damage their skin during a facial treatment. Without general liability insurance, you would have to pay for the damage yourself, which could cost hundreds or even thousands of dollars.

There’s also the risk of a client slipping on a wet salon floor, having an allergic reaction to a product, or claiming that something went missing. Business insurance works like a safety net; it helps protect you from the costs of property damage, injuries, or even lawsuits.

Insurance also builds trust. Many clients feel more comfortable working with beauty professionals who have insurance. Whether you’re working on your own or running a salon with a team, the right coverage helps you work with confidence, knowing you’re protected if something goes wrong.

What Insurance Do Personal Care Businesses Need?

Working in the beauty and personal care industry involves unique daily risks. You handle sharp instruments, hot styling tools, and reactive chemicals. These elements can lead to accidents, injuries, or property damage. You might also rely on expensive specialized equipment to do your job.

To keep your business financially secure, review these critical insurance policies.

Business Owner’s Policy (BOP)

A Business Owner’s Policy is a convenient way to get broad protection. It bundles general liability insurance and commercial property insurance into a single package. Buying a BOP is usually cheaper than purchasing these two policies separately. It covers your physical business assets along with basic liability risks.

Example: A fire starts in the breakroom of your salon and destroys your furniture and inventory. A BOP helps pay for the repairs to the building and replaces your lost supplies.

Professional Liability Insurance

This coverage is also known as errors and omissions insurance. It is vital for experts who provide specific treatments or advice. It protects you if a client claims your service caused them physical harm or failed to deliver the promised results. It covers legal fees and settlements if a client sues you for a mistake or negligence.

Example: A client claims that a chemical peel you applied caused severe burns and permanent scarring. They sue you for damages. Professional liability insurance pays for your legal defense and any resulting settlement costs.

Workers’ Compensation Insurance

Most states require you to carry this insurance as soon as you hire your first employee. It protects your staff if they suffer a work-related injury or illness. The policy pays for their medical bills and covers a portion of their lost wages while they recover. It also provides death benefits in severe cases.

Example: A nail technician develops a repetitive strain injury from filing nails all day and needs surgery. Workers’ compensation covers the medical procedure and pays their wages during the recovery period.

General Liability Insurance

This is the starting point for safeguarding your business. It covers claims involving third parties, such as clients or vendors. It pays for legal costs and damages if someone gets hurt on your premises or if you damage their property. It also covers personal injury claims like slander.

Example: A client trips over a power cord in your waiting area and sprains their ankle. They ask you to pay their medical bills. General liability insurance covers the cost of the ambulance and the hospital visit.

Commercial Auto Insurance

Personal car insurance policies usually exclude accidents that happen while you are working. If you or your staff drive vehicles to transport equipment or visit clients, you need commercial coverage. This policy pays for liability, medical costs, and property damage if a work vehicle is in a crash.

Example: You are driving to a client’s house for a bridal makeup appointment and rear-end another car. Commercial auto insurance covers the repairs for the other driver and any medical expenses.

On average, personal care and cosmetology businesses pay about $143 per month for this coverage. That adds up to roughly $1,716 per year.

Cheapest Personal Care And Cosmetology Professional Liability Insurance (E&O)

The cheapest carrier for Professional Liability insurance is biBerk, with an average annual cost of $319.

Note: These estimates are based on starting prices for sole proprietors or small businesses with low risk, seeking basic Errors & Omissions (malpractice) coverage. Actual premiums will vary based on your specific services (e.g., microblading vs. hairstyling), state, revenue, number of employees, claims history, and chosen coverage limits.

Cheapest Personal Care And Cosmetology General Liability Insurance

The cheapest option for General Liability insurance is offered by NEXT Insurance, with policies starting at $210 per year.

Note: These estimates are based on starting prices for a basic $1 million/$2 million standalone General Liability policy for a single-location business with few or no employees. Actual premiums will vary based on your specific services (e.g., microblading vs. hairstyling), state, revenue, number of employees, claims history, and chosen coverage limits.

Cheapest Personal Care And Cosmetology Business Owner’s Policy

The cheapest option for a Business Owner’s Policy (BOP) is Next Insurance, with average annual premiums around $668.

Note: These estimates are based on a standard BOP, which bundles General Liability with Commercial Property insurance for a small, leased business space. Actual premiums will vary based on your specific services (e.g., microblading vs. hairstyling), state, revenue, number of employees, claims history, and chosen coverage limits.

How Much Does Personal Care And Cosmetology Insurance Cost?

Insurance for a personal care or cosmetology business usually costs between $450 and $1,000 per year for general liability coverage. If you work alone and don’t have employees, your cost will likely be on the lower end of that range. But if you have a growing salon with staff, or you use a company vehicle, your insurance could cost more, sometimes over $2,000 a year, especially if you add other coverages like workers’ compensation or property insurance.

Several things affect how much you pay for business insurance. This includes your business location, how many employees you have, the type of services you offer (like haircuts, facials, or nail treatments), and your past claims history. If you use or travel with expensive tools and equipment, that can also raise your cost. The more risks your business has, the more coverage you may need.

While choosing the cheapest plan might seem like a good idea, it’s important to pick coverage that truly protects your business in case something goes wrong.

Note: Estimates are based on standard coverage limits (e.g., $1 million/$2 million for liability policies) for a small personal care or cosmetology business with a few employees and a leased commercial space. Actual premiums will vary based on your specific services, state, business size, number of employees, revenue, claims history, and chosen coverage limits.

How Is Your Personal Care & Cosmetology Insurance Cost Calculated?

Providers evaluate multiple factors to determine your insurance rate. The size of your operation is a major component. A solo aesthetician typically pays less than a busy salon with a team of employees.

Your service menu also impacts the price. Performing high-risk treatments creates more liability. For example, using lasers or strong chemical peels will likely cost more than standard hair styling. Your business location matters as well. Rates differ significantly by state and ZIP code.

Insurers also check your history and assets. They look at your past claims, the value of your tools, and commercial vehicle use. A history of frequent claims suggests a higher risk and often results in a more expensive premium.