If you own a salon or spa, you've probably heard someone mention getting a Business Owners Policy. Maybe your landlord asked for proof of BOP coverage before you signed your lease. Or maybe you're shopping for insurance and wondering if bundling makes sense. Here's what you need to know: a BOP is essentially a package deal that combines your most essential coverages into one policy—and yes, it usually saves you money.
Think of a BOP like buying a meal combo instead of ordering à la carte. You get general liability coverage (which protects you if a client slips and falls) plus commercial property insurance (which covers your equipment and inventory) in a single, streamlined package. For most salon and spa owners, it's the smartest starting point for business insurance.
What's Actually Included in a BOP?
A standard Business Owners Policy for salons and spas bundles three core coverages. First, there's general liability insurance, which covers bodily injury and property damage claims. If a client trips over a cord and breaks their wrist, or if you accidentally damage a client's clothing during a treatment, general liability steps in to cover medical bills, legal fees, and settlements.
Second, you get commercial property insurance. This covers your physical business assets—your styling chairs, salon dryers, massage tables, retail products, computers, and even your décor. If there's a fire, burst pipe, or break-in, your property coverage pays to repair or replace what's damaged. Most BOP policies also cover equipment that's temporarily off-premises, like if you take supplies to an off-site bridal event.
Third, there's business interruption coverage (also called business income coverage). This is the part people often overlook until they need it. If your salon floods and you have to close for two weeks while repairs are made, business interruption coverage replaces your lost income during that time. It can also cover ongoing expenses like rent and payroll, so you're not scrambling to make ends meet while you're closed.
When Does a BOP Make Sense for Your Salon or Spa?
Most salons and spas are excellent candidates for a BOP. To qualify, you typically need fewer than 100 employees and less than $5 million in annual revenue. Some insurers set the threshold even lower—around $1 million to $6 million depending on the carrier—but the point is, BOPs are designed for small to mid-sized businesses. If you're a solo esthetician or run a boutique salon with a handful of stylists, you're in the sweet spot.
The real question is: do you have physical assets to protect and liability exposure to manage? If you lease a storefront, own equipment, keep inventory, and serve clients in person, the answer is almost certainly yes. Your landlord will likely require proof of insurance before you sign a lease—and most demand between $1 million and $2 million in liability coverage. Many also want to be named as an additional insured on your policy, which is a standard feature most BOP providers can add easily.
A BOP is especially smart if you're currently buying general liability and commercial property separately. Bundling them saves you money—typically 10-15%—and simplifies your paperwork. Instead of juggling two policies with different renewal dates and deductibles, you have one policy, one premium, and one renewal to track.
What's Not Covered by a BOP?
Here's where things get tricky: a BOP doesn't cover everything. One of the biggest gaps for salons and spas is professional liability insurance, sometimes called errors and omissions (E&O) coverage. This covers claims related to the services you provide—like if a client has an allergic reaction to a product you used, or if a chemical treatment damages their hair. A BOP covers slip-and-fall accidents and property damage, but it won't cover professional mistakes or treatment-related injuries.
You'll also need separate coverage for workers' compensation if you have employees. Most states legally require workers' comp, and it's not included in a standard BOP. The same goes for commercial auto insurance if you use a vehicle for business purposes, like picking up supplies or traveling to off-site appointments.
Some insurers offer the option to add professional liability to your BOP as an endorsement, or you can bundle it as a separate policy to get a discount. For comprehensive protection, many salon and spa owners combine a BOP with professional liability and workers' comp. The total cost for that full bundle averages around $162 per month, according to recent industry data.
How Much Does a BOP Cost for Salons and Spas?
For beauty salons, the average BOP costs about $99 per month, or roughly $1,188 per year. That's based on a small salon with two employees. Costs vary by state—you'll pay around $85 per month in North Dakota and up to $116 in New York. For spa and wellness businesses, expect to pay a bit more: around $156 per month or $1,874 annually, with costs ranging from $127 in Alaska to $181 in New Jersey.
Several factors influence your premium. Your location matters—urban areas with higher crime rates or more lawsuits typically have higher rates. The size of your business, your claims history, your coverage limits, and your deductible all play a role. If you want higher liability limits (say, $2 million instead of $1 million), you'll pay more. If you choose a higher deductible, you'll pay less.
To put the savings in perspective: general liability alone costs small businesses an average of $104 per month. A BOP, which adds property and business interruption coverage, costs about $147 per month on average across all industries. That means you're paying just $43 more per month to add two additional layers of protection—a clear cost advantage.
How to Get Started with a BOP
Start by getting quotes from at least three insurers. Rates vary significantly between carriers, and some specialize in salon and spa coverage. Look for insurers that understand your industry—they'll know which coverages matter most and can tailor a policy to your specific needs. Many carriers offer online quotes that give you a ballpark figure in minutes.
When comparing quotes, pay attention to more than just the premium. Check your coverage limits, deductibles, and any exclusions. Make sure the policy includes business interruption coverage and that your property limits are high enough to replace all your equipment and inventory if needed. Ask whether professional liability can be added to your BOP or if it needs to be a separate policy.
Once you've chosen a policy, you can often reduce costs further by bundling additional coverages, paying annually instead of monthly, or increasing your deductible slightly. Just make sure your deductible is an amount you could comfortably pay out of pocket if you need to file a claim. The goal is protection that's both comprehensive and affordable—because the best insurance is the kind that's actually there when you need it.
