Opening a barbershop in Florida means you're not just thinking about clippers and chairs—you're also navigating business licenses, insurance policies, and legal requirements. Here's what catches most new shop owners off guard: Florida's insurance requirements aren't one-size-fits-all. Whether you need coverage depends on how many employees you have, who owns your business, and what your landlord requires in your lease. Let's break down exactly what you need to know.
Understanding Florida's Workers' Compensation Requirements
Florida's workers' compensation law has a clear threshold: if you employ four or more people, you must carry workers' comp insurance. This includes everyone on your payroll—barbers, receptionists, cleaning staff, even part-time employees. The good news? If you're running a smaller operation with three or fewer employees, you're automatically exempt from this requirement.
Here's where it gets interesting for barbershop owners. As of 2026, Florida has seen nine consecutive years of decreasing workers' compensation rates, with the most recent 6.9% reduction approved by the Florida Office of Insurance Regulation. Barbershops fall under NCCI classification code 9586, which groups together barber shops, beauty parlors, and hair styling salons. The average rate sits around $0.49 per $100 of payroll, which translates to roughly $54 per month for most small shops.
But wait—what if you're the owner? If you're structured as a corporation or LLC, you can apply for a personal exemption from workers' compensation coverage through the Florida Division of Workers' Compensation. For non-construction corporations, any officer listed in official records can apply. For LLCs, you need at least 10% ownership, and up to 10 LLC members can claim this exemption. Sole proprietors don't need to worry about this at all since they're not considered employees under the law.
General Liability Insurance: Not Required by Law, But Essential for Business
Here's the part that surprises people: Florida doesn't require barbershops to carry general liability insurance. No state law says you must have it. So why does everyone talk about it like it's mandatory? Because your landlord almost certainly will.
Commercial lease agreements in Florida typically require tenants to carry general liability coverage with minimum limits between $1 million and $2 million. Your landlord will ask for a certificate of insurance on an ACORD-25 form before you sign the lease, and they'll want to be listed as an additional insured. This protects them if a customer slips on your wet floor or gets injured in your space.
General liability insurance covers bodily injury and property damage claims from your business operations. Think about a customer who has an allergic reaction to a product you used, or someone who trips over equipment in your shop. The average cost for barbershops is about $37 per month, or $440 annually—a small price for significant protection. Many insurers also offer professional liability (also called errors and omissions insurance) which covers claims related to the actual barbering services you provide, like a bad haircut that allegedly damaged someone's appearance before an important event.
Professional Licensing and Establishment Requirements
Beyond insurance, you need the proper licenses from the Florida Department of Business and Professional Regulation. Every barber working in your shop must hold a valid barber license, which requires completing 1,000 hours of training at an approved Florida barbering school, passing a written exam, and completing a 2-hour HIV/AIDS course. Your barbershop establishment itself also needs a separate license.
Here's what's notable: Florida doesn't require individual barbers to carry insurance to obtain or maintain their license. The state focuses on training and competency, not insurance coverage. However, many barbershop owners ask independent contractors or booth renters to maintain their own general liability coverage as a condition of working in the shop. This protects the shop owner from liability for the contractor's actions.
Additional Coverage to Consider
Beyond the basics, smart barbershop owners consider a Business Owner's Policy, or BOP. This packages general liability with commercial property insurance that covers your equipment, furniture, and inventory. If your clippers, chairs, mirrors, and products are worth protecting, a BOP makes sense. The average cost runs about $68 per month.
Commercial property insurance becomes especially important when you realize your landlord's insurance only covers the building structure—not your business assets inside. If there's a fire, water damage, or theft, you're on your own without this coverage. Your lease agreement will specify whether you're required to carry property insurance and what documentation you need to provide your landlord, typically on an ACORD-27 form.
How to Get Started with Your Insurance Requirements
Start by determining how many employees you'll have. If it's four or more, workers' compensation insurance is your first priority. Contact the Florida Division of Workers' Compensation if you need to apply for an owner exemption—this should be done before you hire your fourth employee.
Next, review any commercial lease you're considering signing. Ask your landlord for written documentation of their insurance requirements before you shop for coverage. You'll need to know the minimum liability limits they require and whether they need to be listed as an additional insured. Don't sign a lease until you've confirmed you can afford the required insurance.
Finally, get multiple quotes from insurers who specialize in small business and barbershop coverage. Total annual costs typically range from $1,000 to $3,500 depending on your specific situation. Ask about bundling options—many insurers offer discounts when you purchase multiple policies together. Make sure you understand what's covered, what's excluded, and what documentation you'll need to provide to landlords or licensing boards. With the right coverage in place, you can focus on building your business rather than worrying about legal and financial exposure.
