Average Beauty Salon Insurance Cost (2026 Report)

Professional liability insurance costs beauty salons an average of $42 per month, or $503 per year. It covers claims that a service you performed caused a client injury or loss, like hair damaged by bleach or relaxer, a burn from wax or chemicals, an infection after a nail service or an injury from a lash or brow treatment. Professional liability isn't usually a licensing requirement for beauty services, though a salon contract may still require it. See how professional liability costs vary by state below.

General liability insurance costs beauty salons an average of $72 per month, or $869 per year, with standard limits of $1 million per occurrence and $2 million aggregate. It covers injuries to clients and visitors, damage to their belongings and certain claims tied to products you sell, like a client slipping near a wash station, hair dye staining clothing or a retail product causing a reaction. State law doesn't require GL coverage, but your landlord may ask for it as part of your lease when you rent a salon space. See how general liability costs vary by state below.

Commercial property insurance costs beauty salons an average of $28 per month, or $338 per year, with a $100,000 business property coverage cap. It covers the furniture, equipment, stock and other business property you keep at your salon after events like a fire, theft, burst pipe or storm. Your landlord may require it if you rent your salon space, and a lender could require it if you're financing equipment. See how commercial property costs vary by state below.

A business owner's policy costs beauty salons an average of $90 per month, or $1,080 per year, and combines general liability and commercial property into one package. It covers client injuries, damage to someone else's belongings and damage to your salon's furniture, equipment and stock from events like fires, slips or burst pipes. A BOP isn't usually required by law, but your landlord may require general liability and you should carry property coverage if your lease makes you responsible for your salon's contents. See how BOP costs vary by state below.

Cyber insurance costs beauty salons an average of $98 per month, or $1,175 per year, and covers the costs of responding to data breaches, hacked accounts and other cyberattacks, including notifying clients, restoring files and investigating what happened. If your salon uses online booking, takes card payments or stores client details, a breach could interrupt appointments and expose private information. Cyber insurance isn't usually required by state law or a standard salon lease, though a franchise agreement or contract with a larger business might require it if you handle customer information through shared systems. See how cyber insurance costs vary by state below.

Workers' compensation insurance costs beauty salons an average of $16 per month per employee, or $187 per year, and covers medical bills and some lost wages when an employee gets hurt or becomes ill because of their job. Common claims include a stylist cutting their hand, a nail technician developing breathing problems from chemical exposure or an employee slipping while cleaning the salon. Most states require employers to carry workers' comp once they hire, but the exact rules depend on your state and workforce. See how workers' compensation costs vary by state below.

Commercial auto insurance costs beauty salons an average of $93 per month, or $1,111 per year, and covers injuries, property damage and damage to your salon's vehicle after a crash during work use. Common claims include an employee hitting another car while delivering products, a mobile salon vehicle damaged in a crash or someone hurt in an accident during a work trip. State law requires you to insure any vehicle your salon owns and uses for work, and the required minimum may not cover the full cost of a serious accident. See how commercial auto costs vary by state below.

The common coverages address many of the risks your beauty salon faces, but they can still leave gaps, like cash or products stolen by an employee or the cost of repairing equipment that stops working because of an internal mechanical or electrical failure. The specialized policies and endorsements below can help cover losses your main policies leave out.