Learn about business insurance requirements and the most common policies for beauty salons and cosmetologists in Michigan.
If you have a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by hair salons in Michigan, general liability insurance can protect your business from expenses associated with common mishaps, such as client property damage and injuries.
State law in Michigan requires most small businesses with employees to provide workers’ compensation insurance, which covers medical bills for work injuries. Michigan also requires commercial auto insurance for all vehicles owned by a business.
The most common policies for hair salons in Michigan 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, 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 beauty salon in Michigan that employs three or more employees, or one employee for at least 35 hours per week for at least 13 weeks a year, you are required to carry workers' compensation coverage. Otherwise, coverage is optional. Workers’ compensation will cover medical bills and lost wages if one of your employees has a work-related injury.
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 Michigan can expect to pay less than the national median for business insurance.
For example, the median annual cost of workers’ compensation for a beauty salon in the state is $908, significantly less than the national median of $1,641. Similarly, the median annual premium of a business owner’s policy for a hair salon in the state is $939, slightly less than the national median of $975.
Insureon’s industry-leading technology helps beauty salons and hairstylists in Michigan 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 Michigan and can answer your questions as you consider coverage.
To make the application go quicker, have this information ready:
Apply for free insurance quotes for beauty salons today.