What Insurance Do Beauty Salons Need?

Running a beauty salon is a fulfilling career that thrives on the happiness and service it brings customers. However, it also comes with a set of risks you might not have originally considered. From accidents involving clients to costly equipment damage, insurance is essential to protect both the financial health and reputation of your business.

What insurance do beauty salons need?

Without the right coverage, you might face significant financial risks in the event of a claim, whether due to an accident on the premises, professional errors, or unexpected business disruptions. In this guide, we’ll look at the different types of insurance for beauty salons you should consider, to ensure you have the right kind of protection.

Public liability insurance for beauty salons

One of the most important forms of protection for a beauty salon is public liability insurance. This coverage acts to keep businesses safe from claims made by clients or third parties who suffer an injury or damage to themselves or their property while on the premises. Since beauty salons regularly deal with the public, this type of insurance is critical for safeguarding against unforeseen accidents.

Public liability insurance would come in handy if a client slipped on a wet floor, for example, or had an allergic reaction to a product used during treatment. The coverage would handle compensation and legal fees, ensuring your business doesn't have to pay out of pocket.

How much public liability insurance you might want to invest in depends on the size and nature of your salon. The amount of clients you have, the type of treatment and your location all play a role.

Professional indemnity insurance for beauty salons

Professional indemnity insurance comes into play when claims of professional negligence or mistakes made during treatments are made. This can happen if a client experiences dissatisfaction, injury, or worse, as a result of a salon treatment.

In an industry where clients put their appearance in your hands, even a small mistake can lead to hostility and even legal action. This insurance safeguards the salon in case a treatment goes wrong — like a reaction to a chemical treatment, a client dissatisfied with their hairstyle or incorrect advice leading to skin damage.

In any of these cases, professional indemnity insurance would cover legal fees and any compensation that might need to be paid.

Employer’s liability insurance for beauty salons

If your salon employs staff, employer’s liability insurance is typically a legal requirement. This covers claims made by employees who are injured or fall ill while in your care.

For example, a claim of this type could be made if an employee suffers chronic back pain from a faulty chair or having to lean at an awkward angle while at work.

Compliance is not just a legal necessity but also a way to demonstrate that you care about your staff's welfare.

Product liability insurance for beauty salons

If you sell products from your beauty salon, having product liability insurance can be essential to keeping you and your business safe from claims. If a client has filed a claim against you because of a faulty or harmful product you supplied, this insurance can protect you.

Let’s say a client has an allergic reaction to a product used during their treatment or bought from the salon. Product liability insurance would cover the cost of legal fees and compensation. As the beauty industry often involves the use of chemical products, this coverage can be especially important.

Business interruption insurance for beauty salons

If your salon is forced to close after an unseen event, business interruption insurance should be in place to protect your income. Events like fire, flooding or natural disasters can quickly sink your buzzing business into the mire and prevent you from paying bills and salaries.

This insurance can help you get back on your feet and cover the lost revenue from the event, allowing you to start generating income again quickly.

Contents and equipment insurance for beauty salons

You’ll want contents and equipment insurance to cover the cost of repairing or replacing your salon’s physical assets in the event of damage, theft, or loss. This includes furniture, tools, and specialised beauty equipment. Without this coverage, replacing damaged or stolen equipment could be a significant financial setback.

This type of insurance is often flexible — allowing you to tailor your coverage depending on the value and importance of your equipment. A salon that offers high-end treatments might need more coverage for specialised machines, but a smaller salon might only require coverage for basic tools.

Building insurance for beauty salons

If you own the property that your salon is situated inside, building insurance should be a requirement. This covers damage to the structure caused by events such as fires, floods, or vandalism. If you rent the space, the building owner will typically hold this insurance, but it’s still important to verify with them that the building is properly covered.

Building insurance not only covers the cost of repairs but may also help with the expenses of temporary relocation if the building becomes uninhabitable. This ensures that your salon can continue operating, even if you have to move to a temporary location while repairs are completed.

Cyber liability insurance for beauty salons

If your salon has an online store, booking system or other cyber component, taking on cyber liability insurance could save your business from the financial implications of data breaches or cyber attacks. It can also cover compensation to clients if their personal data — like credit card details — is compromised.

Get a beauty salons insurance quote

If you own a beauty salon, you might not have considered the level of coverage available to help tackle the risks associated with your line of work. Each salon’s needs are unique, so it’s important to assess your specific situation and work with an insurance broker to ensure you have the right kind of coverage for your business.

Get a beauty salon insurance quote from Towergate

Towergate can provide beauty salon insurance – visit our webpage for more details. You can request a quote online or call our team on 0344 892 9788.

Business insurance from Towergate

We offer all types of business insurance — it’s quick and easy to get or request a quote either online or by calling us on 0333 060 0915.

About the author

Diane Caplehorn is a respected industry leader with over 25 years' experience within the insurance sector. She works across a wide spectrum of insurance products and policy development, delivery and optimisation for health and beauty, professional risks and martial arts clients.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.