Business Insurance Requirements for Beauty and Hair Salons in New York

Whether you own a hair salon in New York City or a day spa in Buffalo, your clients rely on you to help them look and feel at the top of their game. To help your business succeed, it’s important to give it the same attention by protecting it with insurance.

Hair stylists who rent their salon space will likely encounter a clause in their lease that requires them to carry general liability insurance coverage. While not mandatory, another insurance policy to consider for a beauty salon is professional liability insurance, which can pay for legal bills if your business is sued over your services. New York law requires business owners to carry workers’ compensation insurance if they have even one employee.

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 New York beauty salons. Or simply start an application to get your free quotes today.

Key insurance policies for beauty salons in New York

The most common business insurance policies for New York 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.

 

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 is the foundation of a hair stylist’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: Also known as errors and omissions insurance, this policy can help pay for legal expenses if you’re sued by a customer who is unhappy with your services. If a client hires you on retainer, the contract may require you to have this policy.

New York workers' compensation insurance: New York law requires employers to carry workers’ compensation if they have even one employee, including family members, part-time workers, full-time workers, and leased employees. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages.

While less common than in some professions, accidents can happen in the beauty industry. An employee could collide with a salon chair or slip on a wet floor. According to the Bureau of Labor Statistics, most hairdressers and hair stylists 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 help prevent these accidents from happening by keeping the floors dry and providing safety training for employees.

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

Business insurance costs for beauty and hair salons in New York

According to an analysis of Insureon applications, the cost of beauty salon insurance in New York is fairly close to the national median. Most New York salon owners can expect to pay roughly $575 for an annual general liability policy ($48 per month), which is slightly higher than the national median of $500. However, New Yorkers who bundle general liability coverage with commercial property by purchasing a BOP typically pay around $932 annually, which is less than the national median cost of $975.

Professional liability coverage runs most New York salon owners $508 per year, only slightly higher than the national median of $480. In New York, workers’ comp coverage is one area where salons may save money. The national median price is $1,641; in New York the median cost is closer to $975. However, the cost of workers’ comp depends on the number of employees, so it can vary dramatically.

Median Insurance Costs for New York Hair & Beauty Salons

Save time and money with Insureon

Insureon’s industry-leading technology helps New York 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 New York 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.