Learn about business insurance requirements and the most common policies for beauty salons and cosmetologists in California.
If you have a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by beauty salons in California, general liability insurance can protect your business from expenses associated with common mishaps, such as client property damage and injuries.
State law in California requires every business with employees to provide workers' compensation insurance, which covers medical bills for work injuries. California also requires commercial auto insurance for all vehicles used for business purposes.
The most common policies for beauty salons in California vary depending on revenue, client contracts, partnerships, and other factors.
General liability insurance is the foundation of a hair salon’s business protection, with coverage that extends to client injuries, client property damage, and advertising injuries. Most commercial leases require you to have this coverage.
Professional liability insurance protects beauticians and hairstylists from lawsuits brought by dissatisfied customers. This policy, also called errors and omissions insurance (E&O), can help cover legal expenses if a customer sues over an unsatisfactory haircut or a negative reaction to a beauty product.
If you own a hair salon in California that has employees, you are required to carry workers' compensation coverage. If you are a sole proprietor, the coverage is optional. However, if you slip and break an arm in your salon, or develop carpal tunnel syndrome after years of repetitive work, you can turn to your workers’ comp policy to help pay your medical bills and lost wages.
Cyber insurance covers the cost of data breaches and cyberattacks. Salons that store credit card numbers, email addresses, and other customer information should carry this coverage. It's also called cyber liability insurance or cybersecurity insurance.
Commercial auto insurance covers the costs of accidents involving a vehicle owned by your salon. It can help pay for legal defense costs, property damage, and injuries from an accident, along with vehicle theft and vandalism.
According to an analysis of Insureon applications, the typical hair salon in California can expect to pay more than the national median for some types of business insurance and less than the national median for other types.
For example, the median annual cost of workers’ compensation insurance for a hair salon in the state is $4,937, significantly more than the national median of $1,641. On the other hand, the median annual premium for professional liability insurance is $422, less than the national median of $480.
Insureon’s industry-leading technology helps hair salons in California save time and money shopping for insurance by comparing policies from top U.S. carriers. Start a free online application to review quotes for the policies that best fit your business. Our insurance agents are licensed in California and can answer your questions as you consider coverage.
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