Insurance for hairdressers and hair salons
Hairdresser and Salon Insurance
We arrange the same covers for hairdressers and hair salons as we do for barbers. The main difference is chemical work: colour, bleach, toners, relaxers and smoothing treatments carry more risk than a clipper cut.
A reaction or a burn from a product is a claim about the service itself, so make sure your cover includes treatment risk, which pays when a service harms a client.
Cover is subject to the policy terms and the insurer's acceptance.
Reviewed by
Founder and Director, Grace Insurance. Diploma in Broking, Fellow CIP. In insurance broking since 1992.
What type of insurance does a hairdresser need?
Salon insurance for a hairdresser who works for themselves usually starts with public liability, plus treatment risk cover for claims that colour, bleach or a chemical treatment caused harm. A salon owner adds contents and fit-out cover for the basins, chairs and fittings, business interruption and, once they employ staff or apprentices, workers compensation. Mobile hairdressers and chair renters add tools cover.
Salon treatment risk
What Claims Come From Colour, Bleach and Chemical Work?
Colour, bleach and chemical treatments can lead to claims for allergic reactions, scalp burns, broken hair, fumes and stained clothes. Most of these fall under treatment risk cover, which pays when a service harms a client. Dye on a client's clothes is a public liability claim.
An allergic reaction to hair dye
Some hair dyes contain PPD (para-phenylenediamine), a chemical that can cause a severe allergic reaction, sometimes days after the appointment. A client who reacts can claim for their medical treatment.
A chemical burn from bleach
Bleach or lightener left on too long can burn the scalp. The client can claim for medical treatment and the cost of repairing the hair.
Hair breakage after a treatment
Over-processing, putting chemicals on hair that is already damaged, can make it snap. A client who loses length or patches of hair may claim.
Fumes from a smoothing treatment
Some smoothing treatments give off fumes and need good airflow. A client affected by the fumes can claim, and a staff member's claim goes to workers compensation.
Colour on a client's clothes
Dye on a silk top or a leather bag is damage to their property, which is a public liability claim.
Salon insurance
What Insurance Does a Hair Salon Need?
Anyone who owns a salon, rents a chair or works for themselves needs public liability and treatment risk cover. Salon owners add contents, business interruption and workers compensation, and anyone who carries their own kit adds tools cover.
Public liability
Covers injury and damage claims from clients and the public, with a limit, the most the insurer pays for one claim, of $5 million, $10 million or $20 million.
Read about public liability →
Professional indemnity and treatment risk
Covers claims that colour, bleach, a chemical treatment or a cut caused harm.
Read about professional indemnity →
Contents and fit-out
Covers basins, chairs, dryers, stock and the fit-out, the fixtures and fittings you put into the salon, against fire, storm, theft and burst pipes.
Read about shop contents and fit-out →
Business interruption
Covers lost income, rent and wages while the salon is closed after damage.
Read about business interruption →
Workers compensation
The law requires it once you employ staff. Salon staff can claim for dermatitis, an itchy, cracked skin rash from constant washing and chemicals.
Read about workers compensation →
Tools and equipment
Covers your scissors, dryers and straighteners against theft and damage, in the salon and on the road.
Read about tools and equipment →Workers compensation for salons
Apprentices, Juniors and Staff
Apprentices count as workers for workers compensation, the same as full-time, part-time and casual staff. Once you employ staff, including an apprentice or a junior who works at the basins, you need workers compensation, apart from a few employers with very small wage bills.
The rules vary by state and territory: see workers compensation by state and territory.
How you work
Which Covers Do You Need to Buy Yourself?
Salon owners, chair renters and mobile hairdressers buy their own covers, and an employed stylist is usually covered by the salon.
Salon owner
You need public liability, treatment risk for every stylist, contents, business interruption and workers compensation. A salon needs the same covers as a barbershop, so see insurance for barbershop owners.
Employed stylist
Your employer's policies usually cover the work you do in their salon. Clients you see privately, outside the salon, need your own public liability and treatment risk cover.
Renting a chair in a salon
You run your own business inside someone else's salon, so you need your own public liability and treatment risk. See insurance for chair renters.
Mobile or home-based hairdresser
Home and car policies often leave out business use, so you need your own public liability, treatment risk and tools cover. See mobile and home-based insurance.
Services on your policy
Do You Need to Tell Us When You Add a Service?
A policy covers the business activities written on it. Tell us before you add a new service, such as keratin smoothing, hair extensions or relaxers. We will check that your public liability and treatment risk cover include it.
The same applies when you change how you work: renting a chair in another salon, working from home or taking your tools to clients' homes and weddings.
Hairdresser insurance cost
How Much Does Salon Insurance Cost?
There is no set price for hairdresser insurance. The insurer works out your premium, the price of the policy, from the details you give us, and it is confirmed on your quote.
These details change the price:
The services you offer
Colour, bleach and chemical treatments can add to the price compared with cutting and styling alone.
Your public liability limit
Your limit, the most the insurer pays for one claim, can be $5 million, $10 million or $20 million, and a higher limit costs more.
Your turnover
Insurers use what the salon takes in a year as a guide to how many clients you see.
The covers you choose
Each cover you add, such as contents or business interruption, adds to the price.
Your staff and wages
The insurer prices workers compensation mainly on your wage bill and the kind of work your salon does.
What your contents and tools are worth
Chairs, basins, dryers, stock and the fit-out set your sum insured, the most the insurer pays to replace them, and a higher sum insured costs more.
Your excess
A higher excess, the amount you pay towards a claim, usually lowers the premium.
Your claims history
The insurer also looks at any claims you have made in the past.
You can pay the premium in one go, or spread it with premium funding, where a finance company pays the insurer for you and you repay it weekly, fortnightly, monthly, quarterly or every six months.
Certificate of currency
Who Will Ask to See Your Insurance?
A certificate of currency is a short document from your insurer that shows your policy is active, your limit and the policy dates. Landlords and salon owners often ask to see one before you start. Once your cover is in place, ask us for a copy whenever someone needs it.
Habits that help
How Can a Salon Lower Its Treatment Risk?
Test before every chemical service
Patch test before every colour by putting a small amount of the product on the client's skin, as its instructions say, and record the date and result. Before using bleach or lightener on hair that has been coloured before, try it on a few strands first.
Keep a client card for chemical work
Write up a client card for every chemical service: the product, its strength, how long it stayed on and any reaction. If a client later says a treatment harmed them, those notes help defend the claim.
Keep the air moving with smoothing treatments
Keep the air moving when you use smoothing treatments. Follow the product's safety data sheet, the maker's instructions for using and storing it safely.
Wear gloves for colour work
Wear gloves to mix and apply colour. They protect your own skin from dermatitis, the itchy, cracked rash that constant washing and chemicals can cause.
Who we cover
Other People We Cover
Hairdressers and salons FAQ
Hairdresser and Salon Insurance Questions
Workers compensation is compulsory once you employ staff, apart from a few employers with very small wage bills. The law usually leaves public liability up to you, but salon landlords and shop owners will often ask for it before you start.
Not always. Some policies leave a reaction caused by the service itself to treatment risk cover, which pays when a service harms a client. Check both are on your policy.
Write down what happened, keep the client card and product details, and do not admit fault or offer money. Then call your broker or insurer to start the claim.
Yes, if your policy includes products liability. That is the part of a public liability policy that covers injury or damage caused by something you sell, such as shampoo, treatments or styling products. Check it is listed on your policy.
Yes. As a chair renter you need your own public liability, treatment risk and tools cover. The salon's policy usually covers the owner's business only.
Salon insurance quote
Get a Hairdresser or Salon Quote
Tell us about your salon or chair and the services you offer, and a broker will contact you with your options.
1800 556 777Monday to Friday, 8:30am to 5:00pm Perth time
