Find insurance for hair salons in New York
Learn about business insurance requirements and the most common policies for hair stylists and salon owners in New York.
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What are the most common policies for New York hair salons?
Hair stylists may need different types of insurance depending on the services they offer. These are the most popular beauty salon insurance policies for New York hair styling businesses and beauticians, 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. Bundle with commercial property insurance for savings in a BOP.
- 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.
- Slip-and-fall accidents
- Business property damage
- Business interruption coverage
Professional liability insurance
Also called errors and omissions (E&O), this policy covers lawsuits related to your professional services, such as work performance, such as dissatisfaction over a client's hair dye or styling.
- Lawsuits from dissatisfied customers
- Harm caused by a treatment
- Mistakes, such as using the wrong dye
Workers’ compensation insurance
New York requires workers' comp for salons that have employees. It also protects sole proprietors from work injury medical costs and legal fees that health insurance might deny.
- Employee medical expenses
- Missed wages
- Employee injury lawsuits
Cyber insurance
Cyber insurance covers costs related to data breaches and cyberattacks. It's strongly recommended for hair salons that handle credit card numbers and other personal information.
- 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. New York requires this coverage for vehicles owned by a business.
- Property damage caused by your vehicle
- Legal costs from auto accidents
- Vehicle theft and vandalism
Which policies are required for hair salons and stylists in New York?
Whether you're in New York City, Buffalo, Rochester, Albany, or elsewhere in the state, hair salons in New York often must carry the following types of insurance coverage to comply with laws:
Workers' compensation insurance
New York state law requires hair and beauty salon businesses with 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 New York workers who are disabled or recovering from a job-related injury, such as if you slip and break an arm in your salon. Policies usually include employer's liability insurance, which covers legal expenses if an employee sues their employer over an injury.
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 New York vehicles must have the following car insurance, at a minimum:
- $10,000 for property damage liability for a single accident
- $25,000 for bodily injury and $50,000 for death for a person involved in an accident
- $50,000 for bodily injury and $100,000 for death for two or more people in an accident
If you or your hair stylists drive their personal 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 this situation, or if you rent or lease a vehicle used for business. You can often add this coverage to your general liability policy as an endorsement.
Do I need a hair salon or stylist license in New York?
Yes. In New York, anyone who provides hair or appearance enhancement services must hold a valid license from the New York State Department of State. This includes cosmetologists, barber shops, hairstylists, estheticians, nail specialists, and natural hair stylists. Each license requires completing a state-approved training program and passing written and practical exams.
If you own or operate a salon, you’ll also need an Appearance Enhancement Business License (sometimes called an establishment license), even if you don’t personally perform services. Such as, an unlicensed owner may manage operations, but they can’t wash hair or assist stylists. It's also important to remember that establishment licenses are tied to the business location, so a new one is required if you move or change ownership.
Home-based salons must also be licensed and comply with local zoning, sanitation, and safety rules. Working without the proper license can result in fines or business closure.
Beyond licensing, owners should make sure their business is properly registered, secure any required seller’s permits if they sell products, comply with employment regulations, and maintain health and safety standards.
What do hair salons in New York pay for insurance?
Hair salons in New York that buy policies from Insureon pay an average of:
General liability: $37 per month
Business owner's policy: $63 per month
Workers' compensation: $62 per month
Factors that affect hair salon insurance costs during underwriting include:
- Services offered, such as haircuts, hair color, waxing, and wellness treatments
- Value of business property
- Business income and size
- Location
- Types of business insurance purchased
- Policy limits, deductibles, and exclusions
- Policy add-ons, such as additional insureds
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How do I get New York hair salon and stylist insurance?
Insureon’s industry-leading technology helps hair salons in New York 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 New York 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 hairstylist insurance that fits your business needs. Most small business owners receive a certificate of insurance for proof of insurance the same day.