Insurance for Beauty Salons and Barber Shops

Beauty shops and Barber Shops cut, style, trim, color and apply permanent wave or straightening solutions to hair. Other services may be offered, such as wig cleaning and styling, massage, nail care, tanning, cosmetic consulting and electrolysis. Although salons traditionally catered to women, many salons now offer their services to men as well. Services may be offered on a walk-in basis, by appointment only, or both.

Recommended Insurance Programs for Salons and Spas

Beauty shops are subject to state regulations to reduce possible spread of disease. In addition, each beautician, manicurist or other professional must be licensed. Shops may employ professionals or may rent space to them as independent contractors. The status of the various professionals must be determined since it may impact how coverages apply.

Coverages Recommended for Salons and Barber Shops:

✓ General Liability Insurance
✓ Professional Liability Insurance
✓ Business Personal Property
✓ Hired and Non-Owned Auto
✓ Workers Compensation Insurance
✓ Business Income with Extra Expense

Other coverages to consider for Beauty Parlors:
Building, Bailees Customers Floater, Employees Tools and Equipment and Employment-Related Practices Liability

Common Risks and Needs Associated with Salons

General liability exposure is moderate due to public access to the premises. Aisles should be adequate and free of hair clippings and debris with flooring in good condition, no frayed or worn spots on carpet and no cracks or holes in flooring. Tanning, massage and electrolysis services provide additional premises exposures that need careful control. Tanning services provide a special set of exposures that may need the services of specialty markets as customers may be burned by overexposure to lighting used in the beds.

Injuries to professionals who are independent contractors are part of the premises liability exposure instead of workers compensation. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. Security of visitors in parking areas is often deemed the responsibility of the owner or operator of the premises. Factors affecting the risks include exterior lighting, fencing and any other security measures in place.

Product liability exposure may also exist for salons if the beauty shop sells shampoo and other items to customers. Of particular concern are any products that are non-standard, independently produced or proprietary.

Professional liability exposure depends on the services offered. The stylists’ training, experience and background are important considerations. Simple wash and cut operations have incidental exposures while salons that offer other types of services will have higher exposure. Because of the large number of customers served, a significant, although easily avoided risk, is the transmission of diseases and vermin, such as lice. The absence of simple hygienic practices like hand washing and disinfecting solutions for combs and brushes may indicate a morale hazard. Permanent wave solutions, hair straightening chemicals and dyes can cause considerable hair and scalp damage. Hazards may increase in the absence of procedures to test for allergies and skin reactions.

Property exposure consists of a small office and the customer service area. Ignition sources include electrical equipment, heating and air conditioning. Fires may result from poor wiring, overheating and poor maintenance. Age and condition of the equipment is important. Housekeeping has a significant impact, since hair trimmings are flammable. While most of the chemicals used in the personal applications are not flammable, some may contain alcohol. Ownership of personal property may need to be addressed. Professional equipment such as scissors and electric clippers is quite costly, and is commonly owned by the particular employee or independent contractor.

Hired an non-owned auto exposure for beauty shops is generally limited to employees running errands or picking up supplies for the salon. Employers should consider coverage or ensure employees don’t use their vehicles for work-related errands.

Inland marine exposures are from valuable papers and records for customers and suppliers. If employees provide their own tools, there may be an employees tools and equipment exposure. If the professional goes to the client’s premises to perform services, there may be goods off premises or in transit. There may be a bailees exposure with wigs or other hairpieces, or from storage of customers’ goods at all-day events offered by some high-end salons.

Workers compensation exposure is generally limited to minor cuts and scratches from scissors, burns from chemicals and repetitive motion injuries. Leg and back injuries may result from standing long hours without resting. Losses also can come from eye and skin irritants resulting from the chemicals. Shops with more than one chair might qualify as multiple sole proprietorships, rather than businesses with employees. The contractual relationship helps determine the workers compensation exposure, although regulatory definitions of employee may supersede the contract terms.

Liability Quotes for Beauty Salons

General Liability Shop.com offers affordable liability insurance quotes for salons and barbers throughout the U.S. Our Salon programs include all lines of business insurance, as well as our Target programs for business owners policies (BOP). Contact one of our business insurance Specialists today at 800-900-8657, or start a quote online now.

Beauty Salon and Barber Shop Liability Classification Codes

Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for salons and barber shops. Here are the most common business insurance classifications for salons:

Business Liability Category: Service Business

SIC Business Insurance Codes:

• 7231: Beauty Shop
• 7241: Barber Shops

NAICS Liability Classifications:

• 812112: Beauty Shop
• 812111: Barber Shops

Business ISO General Liability:

• 10115: Beauty Parlors and Hair Styling Salons
• 10113: Barber Shops

Common Workers Compensation Class Codes:

• 9586: Barber Shop, Beauty Parlor, Hair Salon, Manicurist, Tanning Parlors and Tattoo Parlors

We have several insurance companies offering more affordable pricing for Beauty Salon BOPs. Our BOP programs include both professional and general liability insurance coverages.

Learn more about a Business Owners Coverage.