Salons
Workers' Comp Coverage for Beauty and Nail Salons
We’ve been helping salon, spas and massage parlors find easy and affordable coverage for over 15 years. Our experts understand the underwriting requirements from the insurance companies and we know how to negotiate the lowest rates on coverage. That’s why we’ve developed salon insurance programs designed to help you get the best quotes and most flexible payment options.
Pay as you go
Improve cashflow and reduce the potential for big audit bills.
Comparison Pricing
Get quotes from multiple insurance companies to ensure the lowest rates.
Claims Management
Our carriers have experienced claim managers to close claims quickly.
Workers' Compensation Codes Related to Salons and Spas
Employees are grouped into classification codes based on their job duties and work functions. The National Council on Compensation Insurance (NCCI) currently utilizes nearly 800 class codes to help insurance companies and agents categorize employees for rating purposes. Insurance companies set a base manual rate for each class code in order to begin pricing a policy.
Properly classifying workers is an important part of the quote process. Mis-classified employees can cost small businesses thousands of dollars. You could end up paying too much for coverage or owing more money after an annual audit.
Class Code 9586
Beauty Salons
Beauty salons and spas vary significantly in the range of service and products offered. Class code 9586 is a broad classification. It applies to most personal grooming services for men and women. Salon and spa services can apply treatment to all parts of the body. Services typically include beauty parlors, hair stylists, barber shops, tanning salons, nail salons, day spas, tattoo parlors, massage parlors and make-over spas.
A typical hair salon requires very little underwriting. Spas that engage in massage, tattoos, piercings and permanent make-up receive more underwriting scrutiny due the the potential risks related to these services. A good narrative about owners experience and business practices will often help with underwriting and reduce the cost of coverage.
When massage service and tanning beds are operated as separate businesses, or they are offered as part of a health club or gym, they may fall under class code 9263- Fitness Centers. This depends on the business circumstances.
Alternative State Class Codes for Salons and Spas:
Sometimes a state will deviate from the industry class code recommended by NCCI. Instead of the NCCI code, they may require the utilization of a state specific class code for certain business segments.
Related: hair salon, barber shop, beauty parlor, hair stylist, day spa, nail salon, permanent make-up, therapeutic spa, bathhouse, massage therapy, tanning salon, tattoo parlor, tattoo studio, yoga studio.
How Does Workers' Comp Work?
Workers' comp coverage protects employees when injured. It makes good financial sense for both parties.
- Loss of income for employees unable to perform job duties
- Medical expenses for employees injured on the job
- Retraining expenses for employees unable to return
- Permanent injury or disability for lasting injuries
- Survivor benefits if employees are killed on the job
Coverage does not protect employers from everything. Sometimes employees and employers can be negligent.
- Injuries resulting from a violation of the law
- Incidents resulting from employees' use fo drugs or alcohol
- Injuries that did not occur in connection with the job
- Clear company policy violations
- Injuries that did not occur in connection with the job
How Much Does Salon Insurance Cost?
The average rate our customers pay for workers’ compensation under the salon class code is around $0.49 cents per $100 of payroll. The average cost for a general liability insurance policy is about $375.00. Professional liability insurance is typically included on our Business Owner policies designed to protect salon and spa owners.
- Work Comp is priced based on payroll
- Your state and EMR Rating will affect your cost
- The type of services offered can modify rates
- Premium discounts and policy credits may apply
- GL rates are based on gross sales (rated per $1000)
- Gross revenue will affect premium
- The type chemicals used matters to underwriters
- Prior clams and years in business affect pricing
- SIC codes vary by industry
How do I get started?
Here's what we need from you
- Business details, locations, FEIN or SSN
- Estimated annual payroll and job duties- class codes
- Claims info or loss history- if applicable
What Happens Next?
We go find for your best price
- Our software matches you with top-rated carriers
- Our agents apply and negotiate your lowest rates
- We present and recommend your best options