Business Insurance Requirements for Hair and Beauty Salons in Pennsylvania

Pennsylvania is a promising location for a beauty shop, hair salon, or day spa. Residents in Pittsburgh, home to the Andy Warhol Museum, know a thing or two about cutting-edge style; the state is also affordable and business-friendly. Professionals in the beauty industry have their work cut out for them to stay on top of the latest trends and styles for their clients. One thing that can lessen the mental burden for Pennsylvania hairstylists is knowing that their business is protected with salon insurance.

If you rent your salon space, you will likely need to purchase general liability insurance coverage as part of the terms of your lease. Professional liability insurance is not mandatory, but it can help pay your legal bills if a customer isn’t happy with your services and sues. The state of Pennsylvania requires any business owner with at least one employee to carry workers’ compensation insurance, even if an employee only works part-time or is a family member.

Insureon makes shopping for 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 Pennsylvania hair and beauty salons, or simply start an application to get your free quotes today.

Key insurance policies for beauty salons in Pennsylvania

The most common insurance policies for salons in Pennsylvania 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 beauty salon’s business protection with coverage that extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.

Professional liability insurance: This policy, also called errors and omissions insurance, can help pay for legal expenses if you’re sued by a client who isn’t happy with the services you provided.

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.

Pennsylvania’s workers' compensation insurance: Pennsylvania state law requires workers’ compensation coverage for all small businesses that employ one or more workers. This applies to part-time and full-time workers, as well as employees who are family members. Pennsylvania operates a competitive State Workers’ Insurance Fund. Business owners can purchase insurance through the state, a private insurer, or self-insure.

If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. While a salon may not seem like a dangerous work environment, accidents can happen in any workplace. According to the Bureau of Labor Statistics, most hairdressers and hairstylists incur 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 making sure spills are quickly mopped up, and by providing safety training to employees.

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

Business insurance costs for beauty and hair salons in Pennsylvania

According to an analysis of Insureon applications, the median cost for professional liability coverage for hairstylists in Pennsylvania is $312 per year ($26 per month) – quite a bit lower than the national median price of $480. However, general liability will typically cost more in Pennsylvania, with hair stylists paying $761 ($63 per month) for an annual policy, compared to the national median of $500.

Workers’ comp costs tend to be lower for Pennsylvania hairstylists as well, with a median annual price of $1,453 compared to the national median of $1,641. The cost of workers’ comp depends on the number of employees.

Median Insurance Costs for Pennsylvania Hair & Beauty Salons

Save time and money with Insureon

Insureon’s industry-leading technology helps Pennsylvania 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 Pennsylvania 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.