Business Insurance Requirements for Hair and Beauty Salons in Illinois

All you want to do is send your clients out into the world looking and feeling their best. You give your all for your clients, so it makes sense that you would do the same for your salon by purchasing business insurance to protect it.

Salon owners who rent their space will likely need to purchase general liability insurance coverage as part of the terms of their lease. While not required, professional liability insurance can help pay your legal bills if a dissatisfied customer sues over the beauty services you provided. The state of Illinois requires any business owner with at least one employee to carry workers’ compensation insurance, even if that employee only works part-time.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your business needs. Learn more about business insurance requirements and costs for Illinois beauty salons, or simply start an application to get your free quotes today.

Key insurance policies for salons in Illinois

The most common hair and beauty salon insurance policies for Illinois 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.

 

Business type General liability / BOP Professional liability Workers' comp
Sole proprietor X X  
Partner X X  
Contractor / freelancer X X  
Employer X X X

 

General liability insurance: General liability insurance can cover medical costs for a third party injured at your business, such as a customer who slips on a wet floor. This coverage can also pay for lawsuits related to third-party property damage or advertising injuries such as copyright infringement.

Business owner's policy: Hair and beauty 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. With this policy, your business gains protection from vandalism, theft, and customer injuries.

Professional liability insurance: Professional liability coverage (also called errors and omissions insurance) provides coverage if a client isn’t satisfied with the result of your work. If a client’s complaint becomes a lawsuit, your legal expenses are covered.

Illinois workers' compensation insurance: Illinois state law requires employers to carry workers' compensation coverage, even if they only have one part-time employee. Workers’ comp can help pay for medical fees and lost wages if you or an employee is injured on the job.

While salon workers aren’t as susceptible to workplace injuries as employees in other industries, accidents still happen. According to the Bureau of Labor Statistics, hairdressers and hairstylists most often suffer injuries 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. Salon owners can also take steps to prevent these types of injuries by maintaining a safe work environment and by providing safety training to employees.

Most Common Workplace Injuries: Beauty and Hair Salon Owners in the U.S.

Business insurance costs for hair and beauty salons in Illinois

According to an analysis of Insureon applications, the median cost of salon insurance in Illinois is below the national median for several major policies. General liability insurance will cost salon owners about $425 annually (around $35 per month), professional liability coverage will cost around $435 annually, and a BOP will probably cost under $900 per year ($75 per month).

While workers’ comp insurance will likely be the most expensive policy for Illinois salon owners, at a median cost of $1,595 it is still less than the national median price of $1,641 for salon owners. The cost of workers’ comp is based on the number of employees, so your cost could differ significantly from the median depending on how many people you employ.

Median Insurance Costs for Illinois Hair & Beauty Salons

Save time and money with Insureon

Insureon’s industry-leading technology helps Illinois hair and beauty 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 Illinois 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 hair and beauty salon insurance quotes today.