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Cosmetology Insurance

Cosmetology Insurance

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When you work as a cosmetologist, your business could be affected by a variety of hazards, from clients suffering accidental injuries to disasters that damage your property. Even if you are a booth renter at a salon or spa, it’s important to understand that you could still be held liable in a number of situations. When you purchase business insurance to fit your needs, you can feel confident that your business will be protected from the financial consequences of a costly lawsuit or accident.

What insurance coverage do I need as a cosmetologist?

There are many types of insurance coverage to consider, but these policies are particularly relevant to cosmetologists:

General Liability Insurance

General liability insurance covers incidents of third-party property damage, bodily injury, personal injury, and advertising injury. Since cosmetologists frequently interact with members of the public, general liability insurance is a key coverage. Common accidents such as a client slipping and falling can result in injuries. If a client is injured while at your location or if you accidentally damage their property, you could be held liable. General liability insurance can also include a personal and advertising injury component, which provides coverage for a number of non-physical injuries, including libel, slander, and copyright infringement.


Product Liability Insurance

Product liability insurance protects your company against claims of bodily injury or property damage caused by products or goods you sell. For cosmetologists who may recommend and sell hair care products, lotions, creams, face masks, or other items for clients to take home, product liability insurance can be an important coverage. If your products end up causing injury or damage to a customer, you may be sued. Product liability insurance can help cover your legal fees and any resulting settlements.

Product liability insurance is typically covered under the products and completed operations portion of a standard commercial general liability policy. Standalone product liability insurance policies are also available for more high-risk businesses.


Commercial Property Insurance

If you own or lease a salon or spa, it’s essential that you have coverage for the value of your building, tools, equipment, and other business property. Commercial property insurance can provide funds to replace or repair your business property if it is destroyed or damaged by a covered peril such as fire, explosion, storm, vandalism, and more. 

Commercial property insurance covers the following:


If you rent booth space from a salon or other location, the salon owner’s commercial property policy may cover your business property. However, salon owners may not want to make a claim on their insurance for someone else’s property. To make sure that your equipment and tools are protected, business personal property coverage can commonly be added as an endorsement in business owner’s policies

Business Interruption Insurance

Business interruption insurance, also called business income insurance, covers your business for lost income and operating expenses if you are forced to temporarily close due to property damage from a covered peril. Commonly covered perils include fire, lightning, windstorm, hail, explosion, and vandalism. This can be a crucial coverage if you run a salon, studio, or spa, as these businesses depend heavily on their commercial spaces. While not available on a standalone basis, business interruption insurance can be added to your commercial property or business owner’s policy.


Professional Liability Insurance

When you work as a cosmetologist, there’s a risk that clients could sue you if they are unhappy with your professional services. No matter how well trained and careful you are, there’s always a chance that you could accidentally hurt a client or give them a service that doesn’t meet their expectations. Professional liability insurance can provide financial protection if you are sued as a result of failures, negligence, or errors in your professional services.


Additional Coverages

Pricing and Quotes

Pricing for cosmetology insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a cosmetologist with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for cosmetologists:

ProviderGeneral LiabilityProfessional LiabilityBusiness Owner's Policy

Business Insurance and Coronavirus

COVID-19 has had a major impact on many salon, spa, and beauty studio businesses, and many cosmetologists may be unsure about how their business insurance will handle this situation.

In the majority of cases, business interruption insurance policies you have in effect will not cover losses caused by coronavirus. These policies typically only cover losses caused by a direct physical loss or damage, like a fire or theft. Some business interruption policies will include coverage for losses caused by “communicable or infectious diseases,” but this is rare.

How workers’ compensation insurance handles coronavirus cases varies widely depending on the state. If you have employees who catch coronavirus as a result of their work, they may be eligible for workers’ compensation payments in some states.

If your business continues operating and a client or other third party sues you claiming that they contracted coronavirus after visiting your business, some commercial general liability policies will provide coverage, depending on your individual policy and the laws of your state.

You cannot purchase a new policy to cover coronavirus-related losses because insurance policies will not cover losses that have already been discovered.  

Consult our FAQ on coronavirus and business insurance for more information.

Final Word

Working as a cosmetologist can expose you to a number of potential liabilities, from accidental injury or property damage to clients who sue you because they are unhappy with your professional services. Whether you are a booth renter or own your own salon or spa, it’s critical to purchase a range of business insurance that will protect you and your employees from unexpected events. The financial support business insurance provides will enable your business to continue operating even after a costly disaster or lawsuit. 

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