Your passion is helping people look their best. Whether you own a hair salon in Ann Arbor or a day spa in Detroit, your clients rely on you to look and feel at the top of their game. To care for your clients, you also need to take good care of your company. A lawsuit could hurt your image and also financially damage your business. Business insurance helps protect your salon so it can meet the needs of your clients for years to come.
Most commercial leases require general liability insurance coverage. If you rent your space your landlord will probably require you to purchase this policy. While not mandatory, professional liability insurance can also benefit salon owners, as it can pay for legal expenses if a client is dissatisfied with your services and files a lawsuit. If you have employees, Michigan state law may require you to purchase workers’ compensation insurance, depending on how many people work for you and how many hours they work.
Insureon makes shopping for hair and beauty salon insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your business needs. Keep reading to learn more about business insurance requirements and costs for Michigan salons, or simply start an application to get your free quotes today.
Key insurance policies for salons in Michigan
The most common business insurance policies for Michigan 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 third-party bodily injury and property damage, as well as advertising injuries 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 policy can help your business save money by bundling commercial property insurance with general liability at an affordable rate. Property insurance can protect your salon and the equipment you depend on to offer your services.
Professional liability insurance: This policy, also known as errors and omissions insurance, can pay for legal costs associated with lawsuits claiming you were negligent while performing services for a client.
Michigan workers' compensation insurance: Michigan salons with three or more employees at any one time, or workers who are employed for 35 or more hours per week for 13 or more weeks, must carry workers' compensation coverage.
Workplace injuries in hair salons may not be common, but they can happen. A longtime employee could develop carpal tunnel from years of cutting hair, or a stylist could burn an arm on a styling tool. According to the Bureau of Labor Statistics, workplace injuries suffered by hairdressers and hairstylists are most often due to:
- Overexertion and bodily reaction.
- Falls, slips, and trips.
- Contact with objects or equipment.
- Repetitive motion.
Workers’ compensation can pay for medical expenses related to these and other occupational injuries. Beauty industry workers can also reduce the likelihood of these type of accidents by keeping the floors dry and by providing safety training for employees.
Business insurance costs for beauty and hair salons in Michigan
According to an analysis of Insureon applications, the median cost for hair and beauty salon insurance in Michigan is below the national median cost. For example, salon owners in Michigan can expect to pay roughly $425 per year for general liability insurance, which is $75 less than the national median. The median cost of professional liability coverage in Michigan is $390, which compares favorably to the national median of $480.
The biggest potential savings is workers’ compensation coverage. The national median for salon owners is $1,641. But in Michigan it’s roughly $900, which works out to about $75 per month to protect your employees.
Save time and money with Insureon
Insureon’s industry-leading technology helps Michigan 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 Michigan 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.