Several factors contribute to the cost of personal care business insurance, including business size and risks. Cost estimates are sourced from policies purchased by Insureon customers.
General liability insurance costs for personal care businesses
Personal care businesses pay a median premium of less than $35 per month, or $390 per year, for general liability insurance. This policy provides protection for third-party bodily injuries and property damage, along with advertising injuries.
Insureon’s licensed agents typically recommend a business owner’s policy 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 also bundle professional liability insurance with their general liability policy or BOP for increased savings and coverage.
Your industry risks affect general liability costs
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 tend to pay more for this policy.
Common general liability policy limits for personal care businesses
Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.
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.
Your business type and size affect the cost of general liability insurance for personal care businesses
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 can vary significantly across industries.
Business owner’s policy costs for personal care businesses
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 protects against third-party injuries and property damage, along with damage to your own business property. You can also add professional liability insurance to a BOP for increased savings. Because of its broad protection and affordability, Insureon’s licensed agents most often recommend a BOP for personal care businesses.
Business property value determines the cost of a BOP
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 depends primarily on the value of your business property.
What do different personal care businesses pay for a BOP?
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.
Which business owner’s policy limits do personal care companies choose?
Most personal care businesses (90%) choose a business owner’s policy with a $1 million per-occurrence limit and a $2 million aggregate limit.
Professional liability insurance costs for personal care businesses
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, 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.
Professional liability policy limits for personal care businesses
Most 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.
Workers’ compensation insurance costs for personal care businesses
To meet your state’s requirements and avoid penalties, beauty salons and other personal care businesses with employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness. With a median premium of less than $80 per month, or $940 per year for personal care businesses, policy cost is determined by your number of employees and their occupational risk, among other factors.
The cost of workers’ comp depends on the number of employees
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 increases with the number of employees at a business.
Compare quotes from trusted carriers with Insureon
Insureon’s personal care business insurance agents work with top-rated U.S. carriers to find affordable coverage that fits your business. Apply today to compare multiple quotes with one free online application. Work with an account manager specializing in the unique risks of day spas, medical spas, and nail salons and technicians.