New Jersey Hair Salon Insurance

When you run a hair salon, you’ve got to keep all kinds of potential risks in mind on a daily basis. To keep operations running smoothly, you need protection for not only your customers, but also your business property, revenue, and more. Fortunately hair salon insurance is designed to help with just that.

Even better, a New Jersey independent insurance agent can help you find the right kind of hair salon insurance for your business. They’ll even get you equipped with the proper coverage long before you need to file a claim. But first, here’s a deep dive into this important coverage.

What Is Hair Salon Insurance?

Hair salon insurance is designed to protect hair salons in New Jersey from numerous threats. Essentially a specialized form of New Jersey business insurance, hair salon insurance protects owners from property damage, liabilities, and more. Threats like fire, vandalism, theft, etc. are typically covered. A New Jersey independent insurance agent can help you get set up with the right type of hair salon insurance for your business.

What Does Hair Salon Insurance Cover in New Jersey?

Your policy might vary based on your location, but in general hair salon insurance packages come with a set of core coverages. These can include:

• Business income: Coverage pays for lost wages and revenue if your business must temporarily be shut down due to a covered disaster, like a fire or storm.
• Property damage: Protects your physical building against common perils like wind and hail, fire, vandalism, etc.
• Workers' compensation: Though workers’ comp may or may not be legally required for your hair salon, you need to have protection for your team in case anyone gets injured, ill, or dies on the job.
• Product recall coverage: Reimburses you in the event a bad batch of products gets recalled. Coverage might also pay for public relations to protect your business’s reputation.

A New Jersey independent insurance agent can further explain common coverages found in many hair salon insurance policies.

Do I Need any Specific Liability Coverages?

Yes, in fact, a hair salon needs a few types of liability coverage to be fully protected. Insurance expert Jeffery Green listed the following as the most common liability coverages needed by hair salons in New Jersey:

• General liability: This coverage reimburses for legal and court fees if your business gets sued by a third party for claims of bodily injury or property damage stemming from your salon.
• Product liability: This coverage protects you from lawsuits stemming from injury or damage to the public caused by the products you sell, like shampoos and dyes.
• Professional liability: This coverage protects you if you or one of your employees botches a job for a client who then files a lawsuit against your business.
• Cyber liability: Protects your hair salon in case its computer system gets compromised.

A New Jersey independent insurance agent can further explain the liability coverages often needed by hair salons.

Hair Salon Stats

When shopping for hair salon insurance, it’s handy to know just how profitable your industry is, first. Check out this chart below and see for yourself.

Industry revenue of “hair care and esthetic services” in the US 2012-2024 (in billion US dollars)

Revenue in the hair and barbershop industry has been steadily increasing over the past decade, only with a noticeable dip during the pandemic of 2020 and 2021. In 2012, beauty salon industry revenue totaled $19.26 billion, while barbershops totaled $0.54 billion. By 2024 however, the beauty salon industry is projected to bring in $24.37 billion in revenue, and barbershops are projected to generate $1.27 billion.

With the salon industry continuing to generate more revenue over time, it's even more important to get set up with the right coverage from the start.

How Much Does Hair Salon Insurance Cost in New Jersey?

Your hair salon insurance policy’s cost will depend on several factors, like:

• Your exact location
• Your annual revenue
• The size of your hair salon
• The risk level of your hair salon

However, average insurance for hair salons in New Jersey is about $240 per month, or $2,900 per year. If you run a small, solo salon though, you could pay much less — at around $50 per month. On the flip-side, if your hair salon is huge and generates a ton of business, you might pay as much as $1,000 monthly.

Will My Location Impact My Hair Salon Insurance Rates?

Yes, like pretty much all other forms of insurance, your location does play a factor in the cost of your hair salon coverage. If your hair salon sits along the New Jersey coast, you might pay up to 15% more for coverage than your inland counterparts, according to insurance expert Paul Martin. Larger cities also tend to have more expensive coverage rates. A New Jersey independent insurance agent can help provide exact hair salon insurance quotes for your area.

Here’s How a New Jersey Independent Insurance Agent Can Help

When it comes to protecting hair salon owners against liability risks, property damage, and all other disasters, no one’s better equipped to help than an independent insurance agent. New Jersey independent insurance agents search through multiple carriers to find providers who specialize in hair salon insurance, deliver quotes from several sources, and help you walk through them all to find the best blend of coverage and cost.