As of 2022, there are 37,399 hair and nail salon businesses in Canada (with the largest percentage being found in Ontario) a number that has grown by an average of 1.5% annually over each of the past 5 years. (1)
That’s a lot of updo’s, perms, shellacking, polishing and braids.
WHAT IS CONSIDERED A BEAUTY SALON?
Most people imagine a specific type of business, however, “beauty salon” is more of an umbrella term for a type of service business that offers any of the following:
- Aesthetic services such as manicures and pedicures, makeup and other skin treatments (i.e. facials)
- Hair salons that offer hair cuts and styling including barbers
- Day spas focused on relaxation and overall health which can include therapeutic treatments such as massage and aromatherapy
- coverage options
- annual revenue
- how many employee
- specific services offered
- where you’re located
GET A FREE BEAUTY SALON INSURANCE QUOTE
HOW CAN SOMEONE START A BEAUTY SALON?
There is no one size fits all approach when it comes to owning a beauty salon.
Some can be larger chains operating within established spaces like L’Amour Nails does at the Lime Ridge mall in Hamilton or a smaller mobile business like Mobile Hair & Makeup Niagara based in St. Catharines.
TRAINING AND EDUCATION:
While official training is technically not required to become a successful service provider (it’s amazing what self-taught hands-on experience and practice can do to build on your natural talent), it may be very helpful for some, especially if passing a certification exam is one of the requirements to becoming a beauty salon owner (more on this below).
One option is to go through a well-known education institution such as the accredited hairstyling program at Niagara College.
START-UP COSTS:
If you’re looking to become one of the aforementioned brick and motor beauty salons the biggest expense you’ll run into is establishing the location itself.
It’s said that renovating an existing building can cost between $40,000 – $250,000 to get it how you want it depending on the size and location and that building a new hair salon can run upwards of $100,000 – $500,000 (2)
However, if you’re looking to be a smaller mobile beauty salon, then your start-up costs would be significantly lower since all you’d need is a reliable vehicle with commercial auto insurance and whatever supplies your service would require.
LICENSING:
If you are looking to work legally as a professional hairstylist in Ontario you must either:
A – Become a registered apprentice with Skilled Trades Ontario
or
B – Pass a certificate of qualification exam and register as a journeyman with Skilled Trades Ontario.
Other types of beauty services may require their permits and licenses. You can use BizPal to search for your location and industry.
BEAUTY SALON BUSINESS INSURANCE
Whether you operate your business out of a commercial property, travel from client to client as a mobile salon or run your business from home, every service-based business should be secured with small business insurance in Ontario.
TYPES OF BEAUTY SALON BUSINESS INSURANCE TO CONSIDER:
While insurance can do more for a beauty professionals business, it’s primary purpose is to protect and below are different tools it uses to do so.
Liability Insurance.
General liability insurance is a must-have to ensure you and your customers are fully protected.
A lot can go wrong with a close-quarters hands-on service. Skin irritations, a bad reaction to a hair treatment or something else that the customer may feel has ruined their wedding day if a hairstyle or makeup doesn’t work out on the day of.
Not to mention other common types of injury risks like slips and falls.
Liability insurance protects your business from damages related to bodily harm and property damage and has certainly been a life-saving safety net for many business owners in the past.
It also helps protect you from lawsuits.
Contents Insurance.
A beauty technician is only as good as what she or he has on hand to work with.
Content insurance can help cover your tangible business assets in the event they are lost, damaged or stolen.
This would include inventory like makeup, colouring gels, shellacs etc. As well as equipment like shears, trimmers and dryers. Anything not bolted down and fixed within your property may be covered under a contents insurance policy.
Commercial Auto Insurance.
This is especially useful when it comes to mobile beauty service providers who travel from location to location.
Commercial auto insurance can cover liability and damage amounts that a regular personal auto insurance policy is not equippe
Commercial Property Insurance.
If you have a physical brick and motor location for your beauty salon, you need commercial property insurance to keep it protected.
If there’s a fire, storm damage, vandalism or break-in, this policy can help make you whole again.
Business Interruption Insurance.
If your business is put on hold due to an insured peril, business interruption insurance can help keep it alive and well.
If you’re a mobile beauty service provider this could take effect if your vehicle is out of commission after an accident. If you run your business from a physical building, it could be applied while repairs are worked on following a flood, fire or wind storm.
HOW MUCH DOES BEAUTY SALON BUSINESS INSURANCE COST?
While the average small business insurance policy costs owners between $500 – $2,000 per year, what your specific beauty salon business will pay for insurance depends on:
It’s best to get a small business insurance quote from several reputable insurance providers who service your area.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
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SOURCES
1 – ibisworld.com
2 – driven.ca
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