A hair salon generally needs three essential types of insurance: general liability insurance, professional liability insurance, and products and completed operations coverage.

• General liability insurance protects against accidents like slip-and-falls or property damage at the salon. For example, if a client slips on a wet floor or a hot tool damages a client's property, this insurance covers medical bills or replacement costs.
• Professional liability insurance covers claims related to professional services, such as injury caused by a stylist or dissatisfaction with a service result.
• Products and completed operations coverage protects against claims stemming from the products used or services provided, like allergic reactions to hair dye or infections after a manicure.

Additional important coverages may include:

• Employers' liability insurance (required if there are employees), protecting against employee injury or illness claims.
• Commercial property insurance, covering damage to salon property and equipment.
• Optional add-ons like tools and supplies coverage or cyber liability insurance if the salon accepts online payments.

These insurances protect salons from potentially costly legal claims and operational risks, helping sustain business continuity.