Clients visit a nail salon for numerous reasons, such as routine care, preparation for an event, or a little bit of self-care. Regardless of the reason, a nail salon is a perfect escape. Clients return time and again to relax and beautify their nails. In addition, because many clients return for repeat service, a nail salon is a profitable and steady business. As part of the salon’s business plan, it needs suitable insurance to protect the nail salon owners from lawsuits or liabilities.

Related: Guide to starting a nail salon

What Are Some Risks for a Nail Salon?

Accidents and liabilities can put tremendous financial pressure on a small business. Indeed, not all claims will result in costly settlements, but business insurance is essential for situations where expensive claims do occur.

For example, the following hazards are risks for a nail salon:

• Allergic reactions, infections, and injury
• Customer injury
• Fire damage
• Employee injury

These risks normally constitute minor claims; regardless, insurance offers protection so that small businesses are not burdened with expensive lawsuits.

Allergic Reactions, Infections, and Injury

A nail salon will use various tools, chemicals, soaps, and polishes during a regular service. Clients can suffer allergic reactions from substances and paints, and poorly cleaned tools can result in infections. For instance, inadequately cleaned tools spread bacterial and viral infections, like warts or yeast infections.

Injuries, like accidental cuts, can happen if the nail technician is inexperienced or careless. For example, the nail technician can accidentally cut the client while trimming nails, removing cuticles, or filing nails. Other tools, such as motorized nail filers, buffers, and ultraviolet light nail dryers, can injure a customer if misused.

Customer Injury

Aside from manicure injuries, the customer could also be injured onsite from slips, trips, and falls. As an example, pedicure treatments normally involve a foot bath; if spilled water from the foot bath is not cleaned up, the likelihood of slips and falls increases.

An autoclave (a machine that sanitizes equipment) is a burn hazard. Generally, only nail technicians or employees will come in contact with the autoclave. Still, a customer could be injured if the autoclave is not labeled as hazardous or placed out of a customer’s reach. In particular, children are at risk of injury in the salon if they burn themselves on the autoclave or trip on other furniture.

Fire Damage

Generally, most of the salon’s services happen at the salon’s location. Therefore, damage or loss to the salon’s structure can result in a temporary shutdown, causing an income loss. Fire damage is one of the more significant risks to the business’s structure, and fires commonly start from faulty wiring, ill-maintained electrical equipment, and smoking.

A nail salon will have a considerable fire load, meaning salon materials (i.e., acetone, nail polishes, towels, magazines, and papers) aid in a fast-spreading fire. The salon also uses heat-producing equipment like nail dryers, hot wax treatments, and equipment-cleaning machines. These items can increase fire risk if they malfunction or are used too close to flammable objects.

Employee Injury

Repeated exposure to the manicuring products, cleaning supplies, and nail polish vapors can cause dermatitis, headaches, dizziness, and respiratory illness. Additionally, clients with an infection can spread the bacteria to the employees, causing yeast infections, warts, or other infections.

Employees can also be injured from slips, trips, and falls, especially on wet or cluttered walkways. Ventilation is important as the salon produces nail dust. The dust comes from the acrylic nail removal process and from filing and buffing nails. The dust created in the salon can irritate the eyes and nasal passages. Further, inhalation of the salon’s chemicals can also cause respiratory illness, and in extreme cases, lead to skin conditions, liver disease, reproductive loss, and cancer.

What Types of Insurance Should a Nail Salon Consider?

Bearing in mind that risks exist and liability claims are possible, you can bolster your nail salon business with well-rounded insurance coverage. Nail salons should consider the following insurance policies:

• Professional liability
• General liability – premises and operations
• Property insurance
• Workers’ compensation

Professional Liability Insurance

Professional liability insurance is essential to cover negligence claims that result in injury or harm to the salon’s clients. This line of coverage specifically covers negligence claims because of professional services offered—i.e., manicures. Often, nail technician training and certification reduce the likelihood of customer injury; however, incidents may still occur, which is why insuring your business is important.

Negligence is a key reason why professional liability claims arise. For example, careless cleaning practices that result in the spread of bacteria and infections can lead to a slew of liability claims. A professional liability insurance policy offers coverage for claim expenses such as:

• Medical expenses
• Property damage repairs
• Settlements
• Legal fees

General Liability Insurance – Premises and Operations

General liability is a line of coverage that slightly differs from a professional liability policy. However, since the policies overlap, it is advisable to have professional liability and general liability covered by the same insurance company.

A general liability policy for premises and operations covers claims of bodily injury and property damage that occur onsite or due to the salon’s actions. As an example, a customer who slips and injures themselves on a wet floor inside the salon may sue the salon for their medical bills. The salon’s general liability policy will cover the client’s medical bills and the salon’s legal defense costs and settlements.

Commercial Property Insurance

Fire damage can result in expensive repairs and equipment replacements. Insurance covering the salon’s structure and physical items helps financially secure the business from hardships following a loss. Aside from fire hazards, a property insurance policy also insures other natural disasters and dangers, including: 

• Theft
• Vandalism
• Wind and hail damage
• Water damage from leaking pipes

A nail salon that owns the building will need coverage for the structure plus coverage for all the business-owned items (equipment, chemicals, inventory, furniture, and tools). Salons that lease space still benefit from a property insurance policy because it covers business equipment and supplies.

Workers’ Compensation Insurance

A nail salon with employees (also including nail techs that are contractors or pay booth rent), should consider a workers’ compensation policy, which insures against employee injuries. Although many of the risks that cause employee injuries are minor, this policy will cover employee medical bills, lost income, and ongoing care.

Without coverage for employees, the nail salon may be exposed to lawsuits following an incident. Medical bills and lost income are costs that can quickly add up and put financial pressure on a small business. Therefore, coverage for employee injuries is vitally important from a financial perspective. The employees have coverage, and the business is protected from potential lawsuits.

Commercial Auto Insurance

This type of insurance won’t be needed for all salons, but if you perform off-site appointments, commercial auto insurance is necessary. Most personal auto policies won’t cover a vehicle when it’s being used for commercial purposes.

How Much Does Insurance Cost for a Nail Salon?

Insurance pricing is dependent on several factors, and the primary elements are coverage limits and loss exposure risk. For example, a large nail salon that owns its structure, has multiple employees, and services many clients throughout the week will need a generous amount of insurance coverage to protect its liability exposures. Conversely, a smaller nail salon that rents space, has a few employees, and has the capacity to serve a few clients per day will need far less insurance coverage.

Some factors that influence the cost of nail salon insurance include:

• The size and condition of owned structures
• The quantity, value, and condition of equipment and supplies
• The number of employees on the payroll
• Training and certification requirements for nail technicians
• Any past or current liability claims or lawsuits

Comparing quotes from multiple insurance companies gives you a balanced snapshot of typical costs and coverage amounts. Undoubtedly, comparing quotes also allows you to choose a policy with the best coverages for the best price.