Best Beauty Salon Business Insurance

ERGO NEXT ranks first for beauty salons with perfect scores in coverage and affordability, offering comprehensive protection at competitive rates. Even so, we recommend comparing quotes from The Hartford, Coverdash, Nationwide, and Simply Business, our other top picks.

*We based all scores on a beauty salon business with two employees across professional liability, general liability, workers' comp and BOP policies.

Coverdash leads as the most affordable business insurance for beauty salons at $42 monthly, especially for general liability coverage. However, salon owners seeking workers comp, professional liability, and BOP insurance will find better rates with ERGO NEXT and The Hartford for these protection needs.

In general, salon business insurance costs are the following for the four most popular coverage types:

• General Liability Insurance Cost: $67 on average per month, ranging from $58 to $78, depending on the state
• Workers' Compensation Insurance Cost: $15 on average per month, ranging from $13 to $17, depending on the state
• Professional Liability Insurance Cost (E&O): $49 on average per month, ranging from $42 to $57, depending on the state
• BOP Insurance Cost: $99 on average per month, ranging from $85 to $116, depending on the state

Beauty salons need several types of insurance to protect their business. General liability covers customer injuries and property damage. Errors and omissions (professional liability) protects against negligence claims and service mistakes. Workers' compensation is required by law in most states if you have employees and covers medical expenses and lost wages for work-related injuries. Commercial property insurance protects your building, equipment and inventory from damage or theft. Business income coverage fills the gap if you're forced to pause operations.

Review the full guide to finding affordable business insurance, then work through these steps:

ERGO NEXT is the top overall insurer for beauty salon business insurance due to its comprehensive coverage, competitive pricing and excellent customer service. Coverdash provides the most affordable rates.

We answer common questions about beauty salon business insurance:

We selected the best business insurers for beauty salon companies based on the following criteria:

• Affordability (50% of score): We measured each company's premiums against competitors using our standard profile across four coverage types: general liability, professional liability, workers' compensation and a business owner's policy. Lower costs relative to the market earned higher scores.
• Customer service (30% of score): Scores draw on J.D. Power research, customer reviews from Trustpilot and Google, and sentiment from public forums, including Reddit, to reflect real policyholder experiences.
• Coverage (15% of score): We evaluated policy flexibility, payment options, coverage range and salon-specific endorsements. Providers scored higher when their offerings matched the practical needs of beauty salon businesses.
• Financial stability (5% of score): AM Best, Moody's and other industry evaluators provided the financial strength ratings used to assess each insurer's ability to pay claims.

All pricing in this article is based on the following profile representing a typical small beauty salon:

• Three-person business with two employees
• Coverage limits: $1 million per occurrence and $2 million aggregate annually for general liability, professional liability, and workers' comp; BOP includes the same liability limits plus $5,000 in business property coverage
• $150,000 in annual payroll
• $300,000 in annual revenue