Running a barbershop means managing more than just appointments and walk-ins. Between expensive equipment, chemical products, sharp tools, and a steady stream of customers, you're exposed to risks that could seriously damage your business financially. One lawsuit from a customer claiming injury or a fire that destroys your equipment could wipe out years of hard work if you're not properly insured.
This checklist breaks down exactly what coverage you need for your barbershop, what's optional but worth considering, and when to add each type as your business grows. Think of it as your insurance roadmap—whether you're opening your first shop or you've been in business for years.
Essential Coverage Every Barbershop Needs
These aren't optional. If you're operating a barbershop, you need these coverages from day one.
General Liability Insurance protects you when customers or visitors get injured on your property. Someone slips on a wet floor near your washing station? A customer claims they had an allergic reaction to a product you used? General liability covers medical expenses, legal fees, and settlements. Most commercial leases require at least $1 million in coverage before you can even sign, and that's typically the minimum you should carry anyway.
Professional Liability Insurance (also called errors and omissions) covers claims related to the actual services you provide. This includes accusations of bad haircuts, scalp burns from clippers or chemicals, infections from unsanitized tools, or allergic reactions to hair dye. Even if you did everything right, defending yourself in court costs thousands. Professional liability picks up that tab and any settlement or judgment against you.
Commercial Property Insurance covers your physical assets—barber chairs, clippers, mirrors, styling products, waiting room furniture, computers, and more. If a fire, theft, or vandalism damages your shop, this coverage pays to replace your equipment and inventory. For most barbershops with quality equipment, you're looking at $50,000 to $100,000 worth of property to protect. Don't forget to include improvements you've made to the space if you own the building.
Workers' Compensation Insurance becomes mandatory in most states as soon as you hire your first employee. This covers medical bills and lost wages if a barber cuts themselves with scissors, develops carpal tunnel from repetitive motions, or injures their back moving equipment. Requirements vary by state—some require it for one employee, others kick in at three or more—but either way, you'll need it before bringing on help.
Optional But Smart Coverage to Consider
These coverages aren't legally required, but they protect you from scenarios that could shut down your business or drain your savings.
Business Interruption Insurance replaces lost income if you have to close temporarily due to covered damage like a fire or water leak. Your property insurance will pay to fix the building and replace equipment, but what about the income you're losing while closed for two months? Business interruption covers your rent, utilities, payroll, and lost profits during that period. If you depend on your barbershop income to pay your mortgage, this coverage is worth every penny.
Cyber Liability Insurance matters if you store customer payment information, use online booking systems, or keep client contact details in digital files. A data breach exposing customer credit card numbers or personal information can result in notification costs, credit monitoring services, legal fees, and regulatory fines. Even small businesses are targets because hackers know they often have weaker security than large corporations.
Commercial Auto Insurance becomes necessary if you use a vehicle for business purposes—picking up supplies, making bank deposits, or driving to trade shows. Your personal auto policy likely won't cover accidents that occur during business use. If you have a company vehicle or regularly use your personal car for shop errands, commercial auto protects you properly.
Commercial Umbrella Insurance provides extra liability protection above your general liability and other policies. If you face a lawsuit that exceeds your $1 million general liability limit, umbrella coverage kicks in with an additional $1-5 million in protection. It's relatively inexpensive and gives you peace of mind if you're in a lawsuit-happy area or serve high-profile clients.
When to Add Each Type of Coverage
Your insurance needs grow with your business. Here's a timeline for when to add different coverages.
Before Opening Day: Get general liability, professional liability, and property insurance in place. Most landlords won't hand over keys without proof of insurance, and you don't want to cut your first customer's hair without professional liability coverage.
When Hiring Your First Employee: Add workers' compensation immediately. Don't wait until after they start—get it before their first day. Also consider employment practices liability insurance (EPLI) to protect against wrongful termination, discrimination, or harassment claims.
After Your First Year: Once you've established steady income and understand your monthly revenue, add business interruption insurance. You now have reliable data showing what you'd lose if forced to close temporarily. This is also a good time to consider umbrella coverage if your client base has grown significantly.
When Going Digital: Add cyber liability insurance when you implement online booking, store customer payment methods, or maintain a customer database. The moment you're collecting and storing sensitive customer information digitally, you need this protection.
Annual Insurance Review Checklist
Set a reminder every year to review your coverage with these questions in mind:
Have you purchased new equipment or furniture? Update your property insurance limits to reflect the current replacement value of everything in your shop. That $30,000 in equipment from five years ago might be worth $60,000 today if you've added chairs, upgraded clippers, or renovated.
Are you offering new services? If you've added beard grooming, hair coloring, or chemical treatments, make sure your professional liability policy covers these services. Some policies exclude certain services unless specifically added.
Has your staff size changed? Adjust your workers' compensation coverage to match your current payroll. Underreporting can result in big bills at audit time, while overreporting means you're overpaying premiums.
Has your revenue increased significantly? Higher revenue might warrant higher liability limits. If you're bringing in three times what you made when you first opened, your exposure to lawsuits has likely increased too.
Have your lease requirements changed? Some landlords increase required coverage limits when renewing leases. Check your lease annually to ensure you're meeting the minimums.
Insurance isn't the exciting part of running a barbershop, but it's what keeps you in business when things go wrong. Start with the essentials, add optional coverages as your business grows, and review everything annually. A few hundred dollars a month in premiums is a small price to pay compared to the tens of thousands you'd face from a single uncovered claim. Protect what you've built.
