Barber Business Insurance: Best Carriers and Coverage

Insurance can protect barbers’ finances from unforeseen injuries, illness or lawsuits. If you own a physical barbershop space, a business owner’s policy is a cost-effective starting point. It bundles multiple important coverages:

General liability.

Commercial property.

Business interruption.

Shops with employees, retail products or chemical services will likely need additional policies. All barbers should consider standalone professional liability insurance too.

Here’s what to know about barber business insurance and where to shop for coverage.

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Best insurance companies for barbers

Relative number of complaints policyholders make to state regulators.

How financially strong companies are, which indicates their ability to pay claims.

How easy it is to get a quote and buy a policy online.

We reviewed the top carriers for companies that offer policies tailored to barbers. NerdWallet recommends comparing multiple quotes to find the best coverage for a good deal.

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NerdWallet rating

The Hartford sells business owner’s policies for barbers with storefronts or property. You can add coverage from there, including workers’ compensation and equipment breakdown coverage.

The Hartford also caters to smaller businesses, offering home-based business coverage for barbers. You can get a quote online, but you’ll need to connect with an agent to buy a policy. Read our review of The Hartford business insurance.

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NerdWallet rating

For a quick online shopping experience and policies tailored for barbers, check out Ergo Next. Its barber packages include general and professional liability, commercial property, workers’ comp and commercial auto in three different coverage levels.

Ergo Next underwrites its own policies in some states. It acts as an agent in others, connecting consumers with different insurers. The company is financially strong. However, complaints to state regulators are on the high side for its liability products. Read our Ergo Next business insurance review.

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NerdWallet rating

If you’re a shop owner with lots of equipment, Nationwide may be a good match. Its business owner’s policy includes equipment breakdown coverage, which not all do.

Nationwide also has most types of business insurance a barbershop would need, like product liability, workers’ comp and data breach coverage. You can start a quote online, but you’ll need to work with an agent to buy a policy. Read our review of Nationwide business insurance.

Thimble is an insurance agent. Since it doesn’t underwrite insurance policies, we don’t give it a star rating.

You can buy insurance from Thimble by the hour, day, week, month or year. That makes it a potential option for side-hustle barbers. Just watch for additional fees. These vary by location, but they could cost more than the premium on a short-term policy.

You can get a barber’s liability policy that combines general and professional liability, or a business owner’s policy that includes property coverage. Since thimble doesn’t sell its own policies, you’ll work with a different company for claims. Read our review of Thimble business insurance.

Speciality insurance companies for barbers

Choosing a provider that focuses on barbers can sound like a good idea. But if you consider these options, make sure to compare costs (including things like membership dues) and coverage against traditional insurers.

Here are some options. We have not evaluated these companies or their underwriters.

National Association of Barbers (NAOB). This trade group sells professional liability for individual barbers, rather than shop owners. It includes identity theft protection and discounts on dental and health insurance, among other membership perks.

American Barber Association. The ABA is a membership group that sells a full suite of business insurance products only to barbers. Membership requires completing a certification program and paying dues, but includes perks like booth listings and discounts.

Elite Beauty Society. This specialty insurer offers general and professional liability packages, making it a possible match for booth renters. Policyholders can also get discounts on health, dental and vision benefits.

Why do barbers need insurance?

Business insurance can protect barbers financially from on-the-job injuries, lawsuits and other risks. Insurance can help pay out for common perils such as:

A client who is cut by your razor or clipper.

A burn or allergic reaction from dye or other chemical services.

A customer who slips and falls in your shop.

Damage to a client’s belongings.

An employee getting hurt on the job.

A fire that destroys equipment and inventory.

A data breach involving client information.

What types of insurance do barbers need?

The coverage you need depends on whether you own your shop, rent a booth, drive to your clients or barber as a side gig. Here are some common options for barbers.

General liability insurance

We recommend all barbers have general liability insurance. This policy covers bodily injury and property damage claims from people other than employees, plus any related legal costs. It also covers advertising injury, such as libel or slander against a competitor.

For example, say a client trips over your beard trimmer cord and hits his head, requiring stitches. General liability would help pay the medical bills and any lawsuit costs.

A landlord may require you to buy general liability insurance to rent a storefront. Similarly, to rent a booth in a shop you may need to buy general liability and add the shop owner as an additional insured.

Professional liability insurance

This type of liability coverage covers issues due to the barbering service itself. These could include things like an infection or an uneven cut a client alleges cost them a job.

Say a client books an event-day shave, you nick them with a straight razor, and they sue you. Professional liability would help pay the legal fees, medical bills and the cost of the missed event.

General liability policies typically include some professional liability coverage. But the limits may be lower than for the overall policy — or too low period. Evaluate your risk and decide if they merit a standalone policy.

Workers’ compensation insurance

Workers’ comp pays medical bills and lost wages for employees hurt or sick because of work. Nearly every state requires it once you have employees, but it can make sense for sole proprietors too. Health insurance won’t pay missed wages, and it’s also unlikely to pay medical bills from job-related injuries or illness.

Say you slip on the wet floor near the shampoo bowl and tear a rotator cuff. Workers’ compensation would help pay for medical care and a portion of lost wages while you recover.

Commercial property insurance

If you rent or lease a physical storefront, you need commercial property insurance. It covers your shop and what’s inside — including chairs, mirrors and retail products — in the event of certain disasters. Those usually include fire, theft, vandalism and severe weather, but not floods or earthquakes.

For example, say a water leak from upstairs ruins your reception furniture and a stock of pomade. Commercial property would help pay to replace it.

Other types of barber insurance

Policy type

Coverage details

Helps pay expenses like rent and payroll if a covered property event forces you to close temporarily. Business interruption is normally included in commercial property policies.

Say that the leak from upstairs floods your shop and you close for three weeks for cleanup. Business interruption would help cover the lost revenue and ongoing rent.

Business interruption off-premises

Helps pay expenses like rent and payroll when an off-premises event forces your business to temporarily close.

For instance, a water main breaks in your city. Your barbershop is physically fine — except it has no running water. Commercial property insurance and business interruption won’t help since the damage isn’t to your store itself. Off-premises coverage fills this gap for retail businesses.

Equipment breakdown coverage

Pays for repairs or replacement when motorized or electrical equipment like dryers, hydraulic chairs or computers fail.

Say a power surge fries a row of clippers and your booking-system tablet. This coverage helps pay to repair or replace them. Note these policies exclude typical wear and tear, though.

Covers vehicles you own or operate for the business such as a mobile barber van. A personal auto policy generally won’t cover an accident that happens during business use.

Say a barber rear-ends another driver on the way to a pop-up event. Commercial auto would pay for the damage to both vehicles and any injuries to the other car’s driver.

Tools and equipment coverage

Pays for theft or damage to covered items when they’re in transit or not at your store (provided you have one).

Consider the accident above. The crash also wrecks your mobile station and tools. Commercial auto policies usually won’t pay for replacements. But tools and equipment coverage will.

Pays costs from data breaches, ransomware and other cyberattacks. It’s worth a look if you use online booking software.

Say someone hacks your booking system, exposing the names, emails and partial card data of your clients. Cyber insurance helps with the investigation, the required client notifications and any legal fees.

Pays for injury or property damage caused by products you sell, such as beard oils, pomades or shampoos. General liability or a BOP often includes some product liability coverage, but with potentially low coverage limits.

Say a client has a severe allergic reaction to a beard oil you sold them and sues. Product liability would help cover the medical bills and legal defense.

Save up to 30% on business insurance

NerdWallet Small Business helps you get real-time quotes from 30+ insurers, and instant access to your Certificate of Insurance (COI) through our partner, Coverdash.

What barbers should watch out for in business insurance

It’s important to check the fine details of any policy to make sure it fully covers your business’s risks. Barbers should pay particular attention to:

Service exclusions. Some business owner’s policies and standalone liability policies exclude certain services like electrolysis and red-light therapy. Let your insurer know all the services you offer when applying for coverage to ensure you don’t have gaps. If you buy insurance online, read the policy carefully for exclusions.

Bloodborne pathogen exposure. Razor cuts can transmit hepatitis B, hepatitis C and HIV. Some professional liability policies offer coverage as an add-on while others may exclude them. If you offer straight-razor shaves or fades close to the skin, confirm whether your policy covers a claim tied to a blood-contact injury.

Home-based barbers need special coverage. A homeowners or renters policy usually limits payouts on business equipment. It typically won’t cover injuries or property damage caused in your home either. If you cut from home, you’ll likely need a separate business policy. Ask your personal insurer for a home-based business endorsement before you shop for standalone policies.

How much does barber business insurance cost?

Barbers pay a median of $450 for general liability insurance per year, according to data provided to NerdWallet by online brokerage Coverdash.

Your business insurance costs will depend on payroll, revenue, the services you offer, your location, your claims history and the policies you buy. Barbershops that offer straight-razor shaves, chemical services or retail products generally pay more than booth renters. Pricing data can help you set rough expectations, but every business is different.

How to shop for barber insurance

Follow these steps to compare multiple business insurance quotes for similar policies. That’ll ensure you get a good deal for the coverage you need.

1. Gather your key details

This includes annual revenue, number of employees or booth renters, and services you offer. Have your barber license number and federal employer identification number (FEIN) or Social Security number (SSN) if you’re a sole proprietor.

2. Get quotes from multiple insurers

There are three common ways to compare quotes.

Work with an agent or broker. A professional insurance expert can talk you through policies and company details and help tailor your coverage. This option may be best for a brick-and-mortar shop with employees or someone who likes a more personal experience.

Use an online marketplace. Online sites like Coverdash or Simply Business act as a broker or agent to connect you with multiple quotes for policies. You can typically buy quickly and keep the entire experience online.

Contact providers directly. If you have a shortlist of companies you’re interested in, either due to previous experiences or online research, contact them directly. This puts you in control of your shopping experience but can take the most time.

3. Compare limits, exclusions and companies

Read the policy language for service exclusions, bloodborne pathogen language, off-premises coverage and liability limits.

4. Buy the policies and review them annually

Once you’ve made your choice, you’re ready to buy a policy and download your certificate of insurance (COI). Revisit your policies at every renewal to ensure you’re properly covered. Additionally, increase coverage if you add chairs, hire employees, open a second location or add a mobile unit.

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