From Athens to Savannah and everywhere in between, Georgia’s hairstylists are meeting the needs of their clients while competing with more than 25,000 other beauty professionals, according to the the University of Georgia Small Business Development Center. When all the clients are gone for the day, you have to make sure you’re also meeting the needs of your business, and that includes business insurance.
If you rent your salon, your lease will probably require that you carry general liability insurance coverage. Another beauty salon insurance policy to consider is professional liability insurance, which can cover legal expenses if a customer sues you over your beauty services. The state of Georgia requires any business owner with three or more employees to carry workers’ compensation insurance, even if they only work part-time or are independent contractors.
Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your business needs. Read on to learn more about business insurance requirements and costs for Georgia beauty salons. Or simply start an application to get your free quotes today.
Key insurance policies for beauty salons in Georgia
The most common business insurance policies for Georgia salon owners depend on a variety of factors, including number of employees, revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business structure.
||General liability / BOP
|Contractor / freelancer
General liability insurance: General liability insurance is the foundation of a salon owner's business protection. Coverage extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.
Business owner's policy (BOP): Beauty and hair salon owners sometimes qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate. Property insurance can protect your salon if you own the building or space, along with the equipment you depend on to offer your services, such as chairs and styling equipment.
Professional liability insurance: If a client hires you on retainer, the contract may require you to have this policy. But even if you work by appointment only, this coverage, also called errors and omissions insurance, can help pay for legal expenses if you’re sued for unsatisfactory services.
Georgia workers' compensation insurance: Georgia law requires all employers to provide workers’ compensation if they have three or more employees, including minors, contractors, part-time employees, and full-time employees. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages.
Injuries can happen in any workplace, including in the beauty industry. Your employees could slip on a wet floor near the shampoo station, or could suffer a burn from a hot styling tool. According to the Bureau of Labor Statistics, most hairdressers and hairstylists were injured in 2016 due to:
- Overexertion and bodily reaction.
- Falls, slips, and trips.
- Contact with objects or equipment.
- Repetitive motion.
Workers’ comp can pay for medical expenses related to these and other occupational injuries. Beauty industry workers can also reduce the chance of these types of accidents by keeping the floors dry and by providing safety training for employees.
Business insurance costs for beauty and hair salons in Georgia
According to an analysis of Insureon applications, the cost of beauty salon insurance in Georgia is fairly close to the national median. The median cost for general liability insurance for hairdressers in Georgia is $425 (about $35 per month), which is less than the national median cost of $500. Professional liability insurance also typically costs less for Georgia beauty professionals ($440 versus $480).
The cost of workers’ comp insurance does tend to run slightly higher in Georgia, with a median cost of $1,814 compared to the national median of $1,641. These costs are tied to the number of employees at your salon, so you will pay less if you have three employees than you would if you employ 10 people.
Save time and money with Insureon
Insureon’s industry-leading technology helps Georgia beauty and hair salon owners save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Apply online and review quotes for the policies that best fit your business. Our insurance specialists are licensed in Georgia and can answer your questions as you consider coverage.
To make the application go even quicker, have this information ready:
- Workforce details, such as the number and types of employees.
- Current and projected revenue.
- Business partnerships.
- Insurance history and prior claims.
- Commercial lease insurance requirements.
Apply for free beauty and hair salon insurance quotes today.