What landlords require of salons and spas: lease insurance clauses for a salon suite or spa and how to prove you meet them

What your landlord requires when the tenant is a salon or spa

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A salon or spa lease typically requires general liability of $1M per occurrence and $2M aggregate with the landlord as additional insured, professional liability for the services performed in the space, replacement-cost property on stations, chairs, equipment and product inventory, business income, workers' compensation where the state requires it for booth renters and employees, a waiver of subrogation, and often specific wording about plumbing and water damage from shampoo bowls, tubs and steam rooms.

Reviewed by Michael LaBarbera, Licensed property & casualty agent, Provident Financial Group · Reviewed Oct 11, 2026 Updated Oct 14, 2026

Typical requirements and how to check them
Requirement	What they usually ask for	How to check what you have
Commercial general liability	$1M each occurrence / $2M general aggregate, landlord and property manager as additional insureds, primary and non-contributory	Dec page limits and the additional insured endorsement form; confirm the policy has no exclusion for the salon's services, which some premises-only forms add.
Professional liability for services	$1M per claim for hair, nail, skin, massage and spa services; sometimes required to cover independent booth renters working in the space	A beauty or spa professional liability coverage part or separate policy; a standard general liability form does not cover the result of a treatment, only an injury on the premises.
Property on stations, equipment and product	Replacement cost on chairs, stations, dryers, treatment tables, lasers and other devices, mirrors, signage and retail product	Business personal property and tenant improvements limits on the BOP, with high-value devices scheduled where the carrier requires it.
Business income	Rent and continuing expenses through a covered closure, commonly actual loss sustained for twelve months	Business income line on the property policy and its period of restoration.
Water damage and plumbing	Tenant responsible for damage from shampoo bowls, pedicure chairs, tubs, steam rooms and the plumbing that serves them, including to neighbouring suites	Liability covers damage to others' property; your own property policy must not exclude water backup or discharge from plumbing you installed. Ask the carrier for the water backup endorsement if it is missing.
Workers' compensation	Statutory for employees; the lease often requires evidence that booth renters carry their own or are covered	Information page of the policy; for booth renters, their own certificates or an endorsement covering them where the state treats them as employees.
Waiver of subrogation	In favour of the landlord on liability, property and workers' compensation	An endorsement on each policy, blanket where the carrier offers it.

Requirement

What they usually ask for

How to check what you have

Commercial general liability

$1M each occurrence / $2M general aggregate, landlord and property manager as additional insureds, primary and non-contributory

Dec page limits and the additional insured endorsement form; confirm the policy has no exclusion for the salon's services, which some premises-only forms add.

Professional liability for services

$1M per claim for hair, nail, skin, massage and spa services; sometimes required to cover independent booth renters working in the space

A beauty or spa professional liability coverage part or separate policy; a standard general liability form does not cover the result of a treatment, only an injury on the premises.

Property on stations, equipment and product

Replacement cost on chairs, stations, dryers, treatment tables, lasers and other devices, mirrors, signage and retail product

Business personal property and tenant improvements limits on the BOP, with high-value devices scheduled where the carrier requires it.

Business income

Rent and continuing expenses through a covered closure, commonly actual loss sustained for twelve months

Business income line on the property policy and its period of restoration.

Water damage and plumbing

Tenant responsible for damage from shampoo bowls, pedicure chairs, tubs, steam rooms and the plumbing that serves them, including to neighbouring suites

Liability covers damage to others' property; your own property policy must not exclude water backup or discharge from plumbing you installed. Ask the carrier for the water backup endorsement if it is missing.

Workers' compensation

Statutory for employees; the lease often requires evidence that booth renters carry their own or are covered

Information page of the policy; for booth renters, their own certificates or an endorsement covering them where the state treats them as employees.

Waiver of subrogation

In favour of the landlord on liability, property and workers' compensation

An endorsement on each policy, blanket where the carrier offers it.

Why salon and spa leases read differently

A salon's risks are the services themselves and the water that runs through the space. Landlords know that a slip on a wet floor, a reaction to a treatment or a shampoo bowl that floods the suite below are the claims they will see, so the exhibit asks for professional liability alongside general liability, names water damage, and expects the tenant to account for booth renters who are not employees.

The lines a salon lease names

General liability with the landlord added covers injuries on the premises. Professional liability covers the result of a service and is excluded from premises-only forms, which is why the lease lists it. Property coverage names stations and devices, and the better leases say replacement cost. Business income keeps rent flowing after a loss. Workers' compensation applies to employees in every licensed state; some states treat booth renters as employees for compensation purposes, and the lease pushes the owner to settle that question.

How to check your policies against the lease

Match the general liability limits and confirm the additional insured and primary wording by form number. Confirm professional liability is present, whether as a coverage part or a separate policy, and that it extends to the services you actually offer, including any medical-spa procedures. Check the property schedule for stations, devices and product at replacement cost and that water backup is not excluded. Find the business income line. Then confirm the waiver of subrogation on each policy and gather booth renters' certificates if the lease requires them.

Keep the certificate current

Salon leases require a renewed certificate each year and notice of cancellation. A live certificate link stays current as the policies renew and tells the landlord when a line changes, with the official PDF attached.

Questions people actually ask

Does a salon's general liability policy cover a chemical burn from a colour service?

Not on a standard form. That is a professional liability claim, which is why the lease names it separately. Many salon programmes bundle general and professional liability into one policy; the certificate should show both.

My booth renters are independent. Why does the landlord care about their insurance?

Because the landlord's exposure does not depend on who employs the stylist. Leases often require the salon owner to ensure every renter carries professional and general liability, or to add them to the salon's policies.

Why does the lease single out water damage?

Shampoo bowls, pedicure chairs and spa tubs are the most common source of damage to the suite below or next door. Landlords write it into salon leases so the tenant's policies, not the building's, respond.

Do spa devices such as lasers need to be scheduled?

Higher-value devices often exceed the per-item limit on a BOP and some carriers require a schedule or a separate equipment floater. Check the policy's per-item limit against the device cost.