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Find insurance for hair salons in Michigan
Learn about business insurance requirements and the most common policies for hair stylists and salon owners in Michigan.
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What are the most common policies for Michigan hair salons?
Hair stylists may need different types of insurance depending on the services they offer. These are the most popular insurance policies for Michigan hair styling businesses and beauty professionals, which protect against financial losses from accidents and lawsuits.
General liability insurance
General liability coverage handles basic hair salon risks, such as spilling dye on a customer’s expensive clothing. It also covers personal and advertising injury claims.
BEST FOR
- Customer bodily injury
- Customer property damage
- Product liability insurance
Business owner’s policy
A BOP bundles general liability insurance and commercial property insurance at a discount. This is often one of the most cost-effective salon insurance policies.
BEST FOR
- Slip-and-fall accidents
- Business property damage
- Business interruption coverage
Professional liability insurance
This policy covers lawsuits related to work performance, such as dissatisfaction over a client's hair dye or styling. This policy is also called errors and omissions insurance (E&O).
BEST FOR
- Lawsuits from dissatisfied customers
- Harm caused by a treatment
- Mistakes, such as using the wrong dye
Workers’ compensation insurance
Most states require workers' comp for salons that have employees. It also protects sole proprietors from work injury costs and legal fees that health insurance might deny.
BEST FOR
- Employee medical expenses
- Disability benefits
- Employee injury lawsuits
Cyber insurance
Cyber liability insurance covers costs related to data breaches and cyberattacks. It's strongly recommended for salons that handle credit card numbers and other personal info.
BEST FOR
- Data breach notification costs
- Fraud monitoring services
- Cyber incident investigations
Commercial auto insurance
Commercial auto insurance covers the cost of accidents involving a vehicle owned by a hair salon. Most states require this coverage for vehicles owned by a business.
BEST FOR
- Property damage caused by your vehicle
- Legal costs from auto accidents
- Vehicle theft and vandalism
Looking for different coverage? See more policies.
Which policies are required for hair salons and stylists in Michigan?
Whether you're in Detroit, Grand Rapids, Ann Arbor, Lansing, or elsewhere in the state, hair salons in Michigan often must carry the following types of cosmetology insurance coverage to comply with laws:
Workers' compensation insurance
Michigan state law requires hair and beauty salons with one or more employees to provide workers’ compensation insurance, which covers medical bills for work-related injuries and occupational diseases. This policy is also recommended for sole proprietors, as health insurance can deny claims for injuries related to your job.
Workers' comp provides disability benefits to offset lost wages for Michigan workers who are disabled or recovering from a job-related injury, such as if you slip and break your arm in your salon. Policies usually include employer's liability insurance, which covers legal costs if an employee sues their employer over an injury.
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Commercial auto insurance
State law requires commercial auto insurance for any vehicle owned by a business, including hair stylists and salons. This policy covers property damage and medical bills resulting from an accident. It can help pay for vehicle theft, weather damage, and vandalism, depending on the coverage options you choose.
All Michigan vehicles must have the following car insurance, at a minimum:
- $50,000 bodily injury liability per person
- $100,000 bodily injury liability per accident
- $10,000 for property damage in another state
- $250,000 personal injury protection (or less for individuals enrolled in Medicare or Medicaid)
If you or your hair stylists drive personal, rented, or leased vehicles for salon work, you'll need a different policy. Because personal auto insurance won't cover work-related driving, you'll need hired and non-owned auto insurance (HNOA) in these situations. You can often add this coverage to your general liability policy as an endorsement.
Do I need a hair salon or stylist license in Michigan?
In Michigan, anyone who provides cosmetology or barbering services—such as hair cutting, coloring, styling, or chemical treatments—must hold a valid license from the Michigan Board of Cosmetology, part of the Department of Licensing and Regulatory Affairs (LARA).
Depending on your role, this could be a cosmetologist, barber, esthetician, natural hair culturist, electrologist, or manicurist license. Each license requires completing a state-approved training program and passing written and practical exams. Working without a license can result in fines or disciplinary action.
If you plan to operate a salon, barbershop, or spa, you’ll also need a Cosmetology Establishment License from LARA, even if you don’t personally perform services. This license is tied to a specific location, and you’ll need a new one if you move or change ownership.
Home-based salons are permitted but must meet state requirements, such as having a separate entrance, proper sanitation facilities, and compliance with local zoning or building codes. LARA inspects new establishments to ensure they meet Michigan’s health and safety standards before granting a license.
Beyond licensing, you should make sure your business is properly registered, obtain any necessary tax permits if you plan to sell products, follow employment laws, and display all professional and establishment licenses where clients can see them.
What do hair salons in Michigan pay for insurance?
Hair salons in Michigan that buy policies from Insureon pay an average of:
General liability: $35 per month
Business owner's policy: $118 per month
Workers' compensation: $55 per month
Factors that affect hair salon insurance costs include:
- Services offered, such as haircuts, hair color, and waxing
- Value of business property
- Business income and size
- Location
- Types of business insurance purchased
- Policy limits, deductibles, and exclusions
- Additional coverages, such as additional insureds
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How do I get Michigan hair salon and stylist insurance?
Insureon’s industry-leading technology helps hair salons 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:
- Workforce details, such as the number and types of employees
- Current and projected revenue
- Business partnerships
- Insurance history and prior liability claims
- Commercial lease insurance requirements
Apply for free insurance quotes today to find cheap beauty salon insurance that fits your business needs. Most small business owners receive a certificate of insurance for proof of insurance the same day.