As a booth renter, you're running your own business—and that means you're personally liable for what happens. A chemical burn, allergic reaction, or slip-and-fall could result in a lawsuit that threatens everything you've built. Insurance protects you. It's not optional; it's essential. This guide explains what coverage you need and how to get it affordably.
Why You Need Insurance
The salon's insurance typically doesn't cover you as an independent contractor. You're on your own.
- The salon's liability policy usually excludes independent contractors
- A single lawsuit could wipe out your savings and future earnings
- Many rental agreements require proof of your own insurance
- Chemical services carry higher risk than most stylists realize
- Even unfounded claims cost money to defend
- Peace of mind lets you focus on your work
Pro tip: Don't assume the salon's insurance covers you. Ask to see their policy and read the exclusions for independent contractors.
Professional Liability Insurance
Also called malpractice or errors & omissions insurance. This covers claims related to your services.
- Covers claims of negligence in your professional services
- Chemical burns, allergic reactions, hair damage claims
- Bad haircuts that result in complaints or lawsuits
- Failure to perform services as promised
- Typically $1-2 million coverage recommended
- Cost: $150-$300/year for most stylists
General Liability Insurance
Covers incidents not related to your professional services.
- Client slip-and-fall injuries at your station
- Damage to client's property (phone, bag, clothing)
- Third-party injuries in your workspace
- Advertising injury claims (if your marketing causes issues)
- Typically bundled with professional liability
- Cost: Often included in professional liability packages
Other Coverage to Consider
Beyond the basics, these coverages may be worth adding.
- Equipment/tools coverage: Protects your scissors, dryers, etc. ($50-$100/year)
- Business personal property: Covers your products and supplies
- Product liability: If you sell products and they cause harm
- Business interruption: Covers lost income if you can't work
- Health insurance: Not business insurance, but critical for self-employed
How Much Coverage Do You Need?
Standard minimums work for most booth renters, but consider your risk level.
- Professional liability: $1 million per occurrence, $2 million aggregate
- General liability: $1 million per occurrence
- Some landlords require $2 million minimum
- Higher coverage for high-risk services (chemical treatments)
- Consider your personal assets when deciding
- More coverage is relatively inexpensive
Where to Buy Insurance
Several companies specialize in beauty professional insurance.
- Beauty & Bodywork Insurance (BBIS): Popular, affordable
- Professional Salon Insurance: Specializes in beauty industry
- Hands On Trade: Coverage for various beauty professionals
- Insurance Canopy: Quick online quotes
- State cosmetology associations often have group rates
- General insurers like State Farm and Allstate also offer coverage
Pro tip: Get quotes from at least 3 providers. Prices vary significantly for similar coverage.
How to Save on Insurance
Keep costs down without sacrificing necessary coverage.
- Bundle professional and general liability (most providers do this)
- Pay annually instead of monthly for discounts
- Check association membership discounts
- Maintain a clean claims history
- Take safety courses that may qualify for discounts
- Only buy coverage you actually need
- Review and compare quotes annually
If Something Happens
Know what to do if an incident occurs.
- Document everything immediately—photos, witnesses, details
- Notify your insurance company promptly
- Don't admit fault or make statements without consulting insurer
- Cooperate fully with the claims investigation
- Keep records of all related expenses
- Follow up regularly on claim status
Frequently Asked Questions
Basic professional and general liability coverage typically costs $200-$400/year. That's less than $1/day to protect your livelihood. Adding equipment coverage or higher limits adds $50-$150 more annually.
No. Your cosmetology license does not include any insurance coverage. You must purchase insurance separately. Some licensing boards require proof of insurance, but even if yours doesn't, you still need it.
Mobile services carry additional risks. Make sure your policy covers off-site work. Home-based businesses may need to check that homeowner's insurance doesn't exclude business activities, or add a business rider.