Business Insurance Requirements for Beauty and Hair Salons in North Carolina

Whether you cut hair in Raleigh or offer beauty treatments at a day spa in Charlotte, you do your best to meet the needs of your customers. But in order to be there for them, it’s important that you also take care of your business by protecting it with insurance.

If you rent the space for your salon, your commercial lease probably requires you to have general liability insurance coverage. An optional policy salon owners may decide to purchase is professional liability insurance, which can pay to defend your business in court if a client sues claiming your services were not up to par. If you employ three or more workers, even if they are part-time or seasonal staff, North Carolina law requires that you purchase workers’ compensation insurance.

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 North Carolina beauty salons, or simply start an application to get your free quotes today.

Key insurance policies for beauty salons in North Carolina

The most common business insurance policies for North Carolina 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: If a customer is injured in your salon, the legal fees resulting from a lawsuit could be substantial. General liability coverage can pay for expenses related 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 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, prevents you from paying legal expenses out of pocket if a client sues, claiming dissatisfaction with your services. It can pay for your attorney fees, as well as any judgments against you.

North Carolina workers’ compensation insurance: In North Carolina, if your salon employs three or more people, you’re required to purchase workers’ compensation, even if they are seasonal or part-time workers. Workers’ comp can help pay for medical bills or lost wages if you or an employee is injured while working.

Common hazards at salons include wet floors, hot styling tools, and repetitive movement. According to the Bureau of Labor Statistics, most injuries suffered at hair salons result from:

  • Overexertion and bodily reaction.
  • Falls, slips, and trips.
  • Contact with objects or equipment.
  • Repetitive motion.

Workers’ compensation can cover medical expenses related to these and other occupational injuries. Salon owners who want to reduce these types of accidents can educate staff on safety procedures, including unplugging hot tools when they aren’t being used and mopping up wet floors.

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

Business insurance costs for beauty and hair salons in North Carolina

While purchasing business insurance is an important consideration for any beauty salon, the good news is that the median cost for beauticians and hairstylists in North Carolina is less than the national median. According to an analysis of Insureon applications, salon owners in North Carolina can expect to pay roughly $425 annually for general liability insurance, compared to the national median price of $500. Professional liability coverage will cost around $400 per year, or approximately $33 per month.

Some of the biggest potential savings are for workers’ comp coverage. North Carolina salon owners typically pay $1,188 yearly, which is significantly less than the national median of $1,641. The cost of workers’ comp is based on the number of employees, so it can vary quite a bit depending on the size of your staff.

Median Insurance Costs for North Carolina Hair & Beauty Salons

Save time and money with Insureon

Insureon’s industry-leading technology helps North Carolina 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 North Carolina 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.