Insurance tips for nail salon owners

Jill Overmyer

If you run a nail salon, your clients come to you to be pampered. Yet, as with any business, things can go wrong. Bacteria on tools that an employee neglects to clean can cause infections. A customer may have an allergic reaction to the adhesive used to apply artificial nails. A tornado could hit your salon and shut you down for weeks.

You'll need the right insurance to keep you in business through minor hiccups and major disasters alike.

Recommended coverage

The Salon and Spa Association SSA) recommends several layers of coverage:

  • Professional liability coverage. This type of insurance provides coverage in the event an employee's negligence results in injury to a customer. For example, if your salon is sued because an employee fails to sanitize tools and causes an infection, professional liability insurance would cover court costs.
  • General liability. This covers legal costs and judgments against you that result from bodily injury that occurs in your salon. For example, if a customer slips and falls on the steps leading to your salon's entrance, general liability would cover medical bills and court costs, if the customer sues. According to SSA, this coverage also would protect you financially if you damage the business space you're renting.
  • Workers' compensation. This type of insurance is required by law in some states and covers medical costs and lost wages for employees who are injured or who become ill as a result of doing their jobs.
  • Property insurance. Property insurance covers your building and equipment in the event of a fire, theft or other covered disaster. Keep in mind that many property insurance policies generally exclude floods and earthquakes.

The Insurance Information Institute also recommends getting business interruption coverage. Property damage coverage pays to replace your building if it is damaged in a disaster -- but what about the lost income while your building is under construction? Business interruption coverage can pay for that lost income based on what you earned before the disaster), utilities and possibly even the costs of operating out of a temporary location.


You can reduce your chances of filing a claim by making sure you and your employees follow basic safety precautions. GDI Insurance Agency recommends the following guidelines for nail salon owners:

  • Always sanitize tools. Poor sanitation at nail salons can result in infections and costly lawsuits. Adhere to strict cleaning and sanitizing standards, making sure to thoroughly disinfect all tools and stations and to thoroughly train all employees.
  • Protect your employees' health. Make sure employees wear protective clothing when working with customers to lessen the chances of a workers' compensation claim.
Keep your work area clean to minimize the risk of slip-and-fall accidents. Make sure spills are mopped up, and keep stairs in good repair and clear of ice during the winter).

See how much you could save today on your insurance. Get your free business insurance quotes today!