Last Updated: May 31, 2024, 7:04 am by TRUiC Team

Tanning Salon Business Insurance

Getting business insurance for your tanning salon is essential.

This is because tanning salons need to be protected from a variety of different risks, particularly when it comes to tanning bed-related injuries. This includes heat-related trauma, eye damage from broken goggles, and infections from unhygienic beds. 

You will also want to ensure that your tanning equipment is protected from potential theft and/or damage. 

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Tanning Salon

General liability insurance is — generally speaking — one of the most important insurance policies for tanning salons. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Having said that, it is important to note that — depending on your unique needs — you may benefit from purchasing additional coverage. This is because a general liability policy does not cover you from all potential risks. 

Additional business insurance options worth considering include: 

  • Commercial property — Protects your tanning beds and other tanning salon equipment from damage and/or theft. 
  • Workers’ compensation — Protects you from liability that relates to employee injuries or potential lawsuits (e.g., payment disputes, etc.). 
  • Business interruption — Protects you in the event that you are required to temporarily shut down by covering part of your lost income. 

You will also need to find the right type of business insurer for your unique needs:

  • Traditional brick and mortar insurers — Leading examples include The Hartford and Hiscox.  
  • Online insurers — Leading examples include Tivly and Next Insurance. 

In most cases, we recommend going with an online insurer as a small or new business owner. 

This is because staying as price-efficient as possible is pivotal when starting out, and online insurers tend to offer much more affordable coverage due to having significantly lower operating costs.

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Cost of General Liability Insurance

On average, tanning salons in America spend between $350 - $750 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a tanning salon to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our low-cost business insurance review.

Common Situations That General Liability Insurance May Cover for a Tanning Salon

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Example 1: A shipment of tanning oils developed an unseen leak, and a customer slips and falls. Your customer sues seeking damages, including payment of their medical bills. General liability insurance would help you cover these costs.

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Example 2: You sell a customer tanning aftercare products. They develop a rash and a strong allergic reaction. With a general liability policy, you should be covered for immediate medical expenses, legal fees, and resulting settlement costs.

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Example 3: After operating a successful business for many years, you are sued by another business with the same name for copyright infringement. Your general liability policy should cover any associated costs related to the case.

Other Types of Coverage Tanning Salons Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Commercial Property Insurance

If a fire or other covered event damages owned real estate or any business property kept on site, commercial property insurance can help cover the cost of repairing or replacing this property. When choosing the policy’s coverage limits, carefully consider the replacement cost of all business property. Limits should be enough to replace all equipment and to rebuild the building in the event of a loss.

This coverage is frequently purchased as part of a business owner’s policy (BOP).

Workers’ Compensation Insurance

Each state requires all businesses to carry a certain level of workers’ compensation insurance for each employee. This policy covers medical treatment and lost wages in the event of a work-related illness or injury.

Workers’ compensation is typically purchased as a standalone policy.

Commercial Umbrella Liability Insurance

Since liability risks often exceed primary policy limits, a commercial umbrella liability policy should be considered. It adds an extra layer of protection should a large covered lawsuit occur.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your tanning salon:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Tanning Salon Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Yes you do.

Getting business insurance before you begin interacting with clients can be one of the easiest ways to guarantee that you won’t have to face a lawsuit or potential dispute without being covered. Lawsuits can cost you tens of thousands of dollars and tend to significantly impact businesses’ short-term profitability. 

Not necessarily. Certain exceptions may be written directly into your tanning salon insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.