How much does business insurance cost for personal care professionals?

Personal care businesses pay a median premium of less than $35 per month, or $390 per year, for general liability insurance. This policy provides financial protection for third-party bodily injuries and property damage, along with advertising injuries.

Insureon’s licensed agents recommend a business owner’s policy (BOP) over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance to protect your beauty shop, spa, or salon, and costs less than purchasing each policy separately.

Beauty professionals can often bundle professional liability insurance with their general liability policy or BOP for increased savings and coverage.

Among personal care businesses that purchase general liability with Insureon, 51% pay less than $400 per year and 39% pay between $400 and $800 per year.

Personal care businesses with larger workplaces and higher industry risks, such as frequent customer interactions, tend to pay more for this policy.

Policy limits determine how much your insurer will pay on covered claims. The per-occurrence limit is the maximum your insurer will pay for a single incident, while the aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year.

Most personal care businesses (93%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.

Businesses with large premises, such as two-floor medical spa, typically pay more for general liability insurance than a smaller business, such as a hair salon. Your industry risk, building maintenance, years in operation, and your location will also affect your premium.

The annual median cost for medical spas is $581, while the median for hair salons and stylists is $352 – or less than $30 a month. As you can see, the cost varies significantly across professions.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's general liability insurance cost analysis page.

Personal care businesses pay a median premium of less than $70 per month, or $800 per year, for a business owner’s policy. This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.

A BOP provides financial protection against third-party injuries and property damage, along with damage to your own business property. You can often add professional liability insurance to a BOP for increased savings.

Because of its broad protection and affordability, Insureon’s licensed agents typically recommend a BOP for personal care businesses.

Among beauty and personal care professionals that purchase a business owner’s policy with Insureon, 30% pay less than $600 per year and 46% pay between $600 and $1,200 per year.

The cost of a BOP primarily depends on the value of your business property.

Generally, how much property coverage a business needs determines how much it will pay for a business owner’s policy. Medical spas and estheticians tend to own more business property and equipment, so they pay more for this type of coverage.

Most personal care businesses (90%) choose a business owner’s policy with a $1 million per-occurrence limit and a $2 million aggregate limit.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's business owner's policy cost analysis page.

Personal care businesses pay a median premium of about $40 per month, or $500 per year, for professional liability insurance.

Also known as errors and omissions insurance (E&O), this policy offers critical coverage for estheticians, massage therapists, and other beauty professionals who could face a major lawsuit over a work mistake.

The cost of professional liability insurance increases depending on the potential impact of the procedures you offer. For example, a medical spa that offers Botox and other injectable treatments may pay more for this type of insurance.

Many personal care professionals choose to bundle professional liability insurance with their BOP or general liability policy to save money and broaden their coverage.

The majority of beauty and personal care professionals (38%) choose professional liability policies with a $1 million per-occurrence limit and a $1 million aggregate limit. Another 33% choose policies with a $250,000 per-occurrence limit and a $250,000 aggregate limit.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's professional liability insurance cost analysis page.

The median premium for workers’ compensation insurance is less than $80 per month or $940 per year for personal care businesses. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness.

Beauty salons and other personal care businesses with employees typically must purchase this policy to fulfill state requirements and avoid penalties.

Even when it's not required, it's a good idea to purchase workers' comp for yourself or your employees, as health insurance providers can deny claims for work-related injuries.

Among beauty and personal care professionals that purchase workers’ compensation insurance with Insureon, 18% pay less than $500 per year and 34% pay between $500 and $1,000 per year.

The cost depends on the number of employees at a business, their occupational risk, and other factors.

Learn how workers' comp premiums are calculated and more on Insureon's workers' compensation insurance cost analysis page.