Risks of Operating a Hair Salon

Operating a hair salon, especially when you choose a good location, has the potential to be a rewarding and profitable business. But before you open your doors, be aware of the risks you are exposed to. These aren’t necessarily guaranteed for every hair salon, but by understanding a little more about them, you can take the necessary steps to mitigate them.

Unsanitary Conditions

The conditions of your salon, from your equipment to the floors, need to be sparkling clean at all times. This isn’t just a good habit when you own a business, but to keep it healthy for your clients and employees. Always sanitize your tools, including combs, brushes, clippers and hair dying equipment before use. Never use a brush on two clients without cleaning it first, as this is how diseases are spread. Your sinks, floors, chairs and towels must also be clean. By cleaning properly consistently, you reduce the risk of illness or infections that can be easily spread.

Injury to Clients or Employees

Your clients and employees are also at risk for physical risks, not pertaining to illness or infections. To reduce the risk of injuries, like slips and falls, make sure you clean up any spills immediately and sweep up hair right away. If someone is walking to the back to get their hair washed and slip on clipped hair on the ground, you are responsible for their injuries. Other potential injuries include skin burns from curling irons or other hot tools, and even hot water that burns their scalp.

Unexpected Events

Your salon, like other types of businesses, is at risk for unexpected events that could damage your business property. This includes events like fire, flood, natural disasters, or even damage from extreme weather conditions. Be aware of the potential damage these events could cause your business, because they could cause significant damage to your building, which will then need to be repaired, and put you out of business until repairs are complete.

Legal and Licensing Issues

Another risk to be aware of when you operate a hair salon, which is a type of beauty salon, is that of legal issues. To operate legally, you must check with your local building codes and make sure you can have a salon in that area. You must also have a business license, proper registration, and your stylists need to have their licensing as well. If there is an issue with a stylist making a mistake and a lawsuit is brought against them by a client, you can bet their lack of a proper license will be a problem.


Finally, you need to be careful about possible crimes that can occur in your hair salon. This includes payments with fraudulent credit cards or checks, theft of supplies or dishonest employee practices. If an employee is in charge of the books for your salon and they embezzle money, you have to cover the loss.

While these business risks look intimidating and overwhelming, there are ways to reduce the risk. To mitigate business risks, get proper insurance to cover each of your risks. General liability and property insurance, crime insurance, and worker’s compensation are all essential for a hair salon.