Beauty salon insurance costs vary across coverage types, helping you plan your budget effectively. MoneyGeek's survey analysis shows monthly premiums range from $15 for workers' compensation to $99 for business owner's policy coverage.
How Much Does Beauty Salon Business Insurance Cost?
Beauty salon business insurance rates begin at $15 per month, but your specific business details will determine your final cost.
Discover cheap beauty salon business insurance below.
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Updated: August 20, 2025
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Key Takeaways
Beauty salon business insurance costs range from $15 to $99 per month, with rates varying based on your selected coverage types.
Your beauty salon insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable beauty salon business insurance costs.
Average Beauty Salon Business Insurance Cost Overall
| BOP | $99 |
| General Liability | $67 |
| Professional Liability (E&O) | $49 |
| Workers' Comp | $15 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Beauty Salon Business Insurance Cost for General Liability Coverage by State
Your Beauty Salon business general liability coverage costs vary by location. Maine and North Carolina offer the lowest rates at $58 monthly versus the $67 national average, while Louisiana costs $78 monthly.
| Alabama | $66 |
| Alaska | $62 |
| Arizona | $64 |
| Arkansas | $64 |
| California | $75 |
| Colorado | $67 |
| Connecticut | $73 |
| Delaware | $72 |
| Florida | $73 |
| Georgia | $68 |
| Hawaii | $66 |
| Idaho | $64 |
| Illinois | $74 |
| Indiana | $65 |
| Iowa | $64 |
| Kansas | $65 |
| Kentucky | $62 |
| Louisiana | $78 |
| Maine | $58 |
| Maryland | $64 |
| Massachusetts | $70 |
| Michigan | $64 |
| Minnesota | $63 |
| Mississippi | $67 |
| Missouri | $66 |
| Montana | $67 |
| Nebraska | $64 |
| Nevada | $76 |
| New Hampshire | $67 |
| New Jersey | $76 |
| New Mexico | $68 |
| New York | $78 |
| North Carolina | $58 |
| North Dakota | $58 |
| Ohio | $62 |
| Oklahoma | $65 |
| Oregon | $62 |
| Pennsylvania | $77 |
| Rhode Island | $74 |
| South Carolina | $69 |
| South Dakota | $63 |
| Tennessee | $65 |
| Texas | $68 |
| Utah | $64 |
| Vermont | $64 |
| Virginia | $61 |
| Washington | $76 |
| West Virginia | $70 |
| Wisconsin | $66 |
| Wyoming | $62 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Beauty Salon Business Insurance Cost for Workers’ Compensation Coverage by State
Your Beauty Salon business cost for workers' compensation varies by state. North Carolina offers the lowest rates at $13 monthly and New York the highest at $17 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $14 |
| Alaska | $13 |
| Arizona | $14 |
| Arkansas | $14 |
| California | $16 |
| Colorado | $14 |
| Connecticut | $16 |
| Delaware | $16 |
| Florida | $16 |
| Georgia | $15 |
| Hawaii | $15 |
| Idaho | $14 |
| Illinois | $16 |
| Indiana | $14 |
| Iowa | $14 |
| Kansas | $14 |
| Kentucky | $14 |
| Louisiana | $16 |
| Maine | $13 |
| Maryland | $14 |
| Massachusetts | $15 |
| Michigan | $14 |
| Minnesota | $14 |
| Mississippi | $15 |
| Missouri | $14 |
| Montana | $14 |
| Nebraska | $14 |
| Nevada | $17 |
| New Hampshire | $14 |
| New Jersey | $16 |
| New Mexico | $15 |
| New York | $17 |
| North Carolina | $13 |
| Oklahoma | $14 |
| Oregon | $14 |
| Pennsylvania | $17 |
| Rhode Island | $16 |
| South Carolina | $15 |
| South Dakota | $14 |
| Tennessee | $14 |
| Texas | $15 |
| Utah | $14 |
| Vermont | $14 |
| Virginia | $13 |
| West Virginia | $15 |
| Wisconsin | $14 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Beauty Salon Business Insurance Cost for Professional Liability Coverage by State
Like other types of coverage, your Beauty Salon business cost for professional liability varies by state. The national average is $50 monthly, with North Carolina offering the lowest rates at $42 for E&O insurance, while New York charges the highest at $57 monthly.
| Alabama | $49 |
| Alaska | $46 |
| Arizona | $46 |
| Arkansas | $47 |
| California | $55 |
| Colorado | $48 |
| Connecticut | $53 |
| Delaware | $53 |
| Florida | $53 |
| Georgia | $49 |
| Hawaii | $51 |
| Idaho | $46 |
| Illinois | $55 |
| Indiana | $49 |
| Iowa | $47 |
| Kansas | $48 |
| Kentucky | $46 |
| Louisiana | $56 |
| Maine | $42 |
| Maryland | $46 |
| Massachusetts | $52 |
| Michigan | $47 |
| Minnesota | $46 |
| Mississippi | $48 |
| Missouri | $47 |
| Montana | $49 |
| Nebraska | $46 |
| Nevada | $55 |
| New Hampshire | $50 |
| New Jersey | $55 |
| New Mexico | $50 |
| New York | $57 |
| North Carolina | $42 |
| North Dakota | $43 |
| Ohio | $46 |
| Oklahoma | $46 |
| Oregon | $46 |
| Pennsylvania | $56 |
| Rhode Island | $54 |
| South Carolina | $51 |
| South Dakota | $46 |
| Tennessee | $48 |
| Texas | $50 |
| Utah | $47 |
| Vermont | $47 |
| Virginia | $45 |
| Washington | $56 |
| West Virginia | $52 |
| Wisconsin | $48 |
| Wyoming | $46 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Beauty Salon Business Insurance Cost for BOP Coverage by State
Business owner's policy rates vary widely for beauty salon insurance across states. Monthly premiums range from $85 in North Dakota to $116 in New York, showing significant regional differences in coverage costs.
| Alabama | $100 |
| Alaska | $93 |
| Arizona | $91 |
| Arkansas | $94 |
| California | $111 |
| Colorado | $97 |
| Connecticut | $109 |
| Delaware | $107 |
| Florida | $108 |
| Georgia | $101 |
| Hawaii | $95 |
| Idaho | $95 |
| Illinois | $108 |
| Indiana | $95 |
| Iowa | $94 |
| Kansas | $96 |
| Kentucky | $91 |
| Louisiana | $113 |
| Maine | $86 |
| Maryland | $96 |
| Massachusetts | $106 |
| Michigan | $95 |
| Minnesota | $92 |
| Mississippi | $101 |
| Missouri | $97 |
| Montana | $99 |
| Nebraska | $92 |
| Nevada | $112 |
| New Hampshire | $99 |
| New Jersey | $115 |
| New Mexico | $100 |
| New York | $116 |
| North Carolina | $87 |
| North Dakota | $85 |
| Ohio | $91 |
| Oklahoma | $97 |
| Oregon | $94 |
| Pennsylvania | $115 |
| Rhode Island | $108 |
| South Carolina | $100 |
| South Dakota | $93 |
| Tennessee | $95 |
| Texas | $95 |
| Utah | $94 |
| Vermont | $94 |
| Virginia | $91 |
| Washington | $111 |
| West Virginia | $105 |
| Wisconsin | $97 |
| Wyoming | $93 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Beauty Salon Business Insurance Cost
Beauty salon insurance costs are based on several factors that insurance companies review to set your rates. Understanding these elements helps with budget planning. We break down these key factors below.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in areas prone to natural disasters or high crime increases your risk profile, leading to state variations in rates.
Safety record and claims History
Previous claims impact future premiums, sometimes for three to five years. A single slip-and-fall incident or chemical burn claim can substantially increase your general liability rates at renewal.
Employee count and payroll
Your salon's employee count and total payroll directly affect insurance costs. Adding staff members increases workers' compensation premiums since insurers calculate rates based on your payroll and each employee's job duties, from stylists to reception staff.
Services offered
Different beauty services carry varying risk levels that affect insurance costs. A salon offering basic haircuts faces lower premiums than one providing chemical treatments, permanent makeup, or advanced skin procedures.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A single-chair salon earning $50,000 annually pays less than a full-service beauty center with $500,000 in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and product values
More expensive salon equipment and product inventory require higher coverage limits, increasing your premiums. A salon using high-end styling stations, premium tools and maintaining large product inventories needs more coverage than one with basic equipment.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Beauty Salon Business Insurance
Beauty salon owners can lower their business insurance costs through smart comparison shopping and risk management strategies, and the proven tips below offer both immediate savings and long-term premium reductions.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your beauty salon needs prevents overpaying for unnecessary coverage. General liability protects against customer slip-and-falls or chemical burns, while professional liability covers claims related to services provided. Property insurance safeguards your expensive salon equipment and product inventory.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between carriers for the same coverage. Request quotes from at least three insurance companies to find the best rates. Consider working with an independent agent who can compare multiple options for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining general liability, property insurance, and professional liability with one carrier typically costs less than separate policies from different insurers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means you'll pay more out-of-pocket for small claims, but you'll save money on regular premium payments.
- 5
Pay annually instead of monthly
Most insurance companies add processing fees for monthly payments. Paying your premium annually eliminates these extra charges and often qualifies you for additional discounts.
- 6
Review and adjust your coverage annually
Your insurance needs change as your salon grows. Review your coverage yearly to ensure it matches your current business size and operations. Drop unnecessary coverage and adjust limits based on your salon's evolving needs.
Insurance for Beauty Salon Business Cost: Bottom Line
Beauty salon business insurance costs range from $15 to $99 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Beauty Salon Business Insurance Cost: FAQ
Business owners often ask about insurance costs for beauty salon companies, from general liability to workers' compensation coverage. Here are straightforward answers to common questions.
What is the cheapest type of beauty salon business insurance?
Workers' compensation insurance costs $15 monthly, making it the most affordable option. However, most beauty salon businesses need more costly general liability insurance ($67 monthly) to protect against customer injuries and property damage.
How much can I save by bundling my beauty salon business insurance policies?
Bundling multiple policies through a business owner's policy (BOP) offers savings for beauty salon owners. A BOP costs $99 monthly and combines general liability, commercial property, and business interruption coverage into one package.
What factors make my beauty salon business insurance more expensive?
Factors like claims history, geographic location, business size and services offered influence costs and can cause your beauty salon business insurance to be more expensive.
Should I choose a $500 or $2,500 deductible for my beauty salon business insurance?
Higher deductibles lower your monthly premiums but require more out-of-pocket costs when filing claims. Consider your available cash flow and claim frequency when choosing your deductible amount.
How much does workers' compensation cost for beauty salon businesses by state?
Monthly workers' compensation costs for beauty salons vary by state, ranging from $13 in North Carolina to $17 in New York, with most states falling between $13 and $16.
Is business owner's policy (BOP) worth the extra cost for beauty salon companies?
A business owner's policy costs $99 per month on average and bundles essential coverage types into one policy. This comprehensive package offers great value compared to purchasing individual policies.
How often should I shop around for beauty salon business insurance quotes?
Shop for new beauty salon insurance quotes annually during renewal time. Compare at least three insurers to find better rates, particularly if your business has grown or changed services.
How We Determined Beauty Salon Business Insurance Costs
We collected beauty-salon business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small beauty-salon businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the beauty-salon industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.