Workers Comp Code for Hair Salons and Beauticians: A Guide

What Are Class Codes and Why Do They Matter?

Insurance class codes are four-digit numbers that offer insights into specific job roles. These codes are issued by the National Council on Compensation Insurance (NCCI). The NCCI examines how often workers in each role experience injuries and uses this data to determine the risk associated with each class code. This helps insurance companies calculate workers' comp rates for hair salons.

Class codes in workers' compensation insurance for hair salons and beauticians are significant because they ensure that salon owners pay the appropriate amount for workers' compensation insurance, while still providing adequate protection for their employees.

How are class codes determined?

Class codes for hair and beauty salons are determined based on injury data specific to the beauty industry. The National Council on Compensation Insurance (NCCI) gathers information about how often workers in salons experience injuries. Based on this data, they assign a risk rating to each class code.

For salons, where employees may work with sharp tools, chemicals, and heat, the risk rating tends to be moderate. If there are more reported injuries in a particular year, the risk rating will go up, and insurance premiums may increase. Safety improvements, like better training or equipment, can help lower the risk rating over time.

The NCCI updates these risk ratings each year to ensure premiums are adjusted based on the latest injury data.

Common Class Codes for Hair Salons and Beauty Businesses

Class Code 9586

This is the primary code used for most hair salons. It covers employees performing tasks like cutting, styling, and coloring hair, as well as providing other beauty services. This class code also applies to nail salons, beauty parlors, and related businesses in the beauty industry.

Class Code 8832

If your salon provides medical-grade services, like botox or other cosmetic procedures that are more closely tied to medical practices, you might fall under Class Code 8832. This code typically applies to medical services and tends to carry a higher risk rating and premium than 9586.

Class Code 9063

If your salon offers additional services like massage therapy or tanning beds, your business could fall under Class Code 9063. This code is typically used for fitness centers and wellness clinics that offer specialized services and might involve additional risks, such as physical manipulation and exposure to chemicals.

State-Specific Class Codes for Hair and Beauty Salons

Hair and beauty salons may have unique class codes depending on the state. Here is an example:

Class Code 0977 - Pennsylvania and Delaware

In Pennsylvania and Delaware, hair and beauty salons are classified under Class Code 0977. This code applies to businesses offering services such as hairstyling, nail care, tanning, and other beauty treatments.

Non-Industry Class Codes for Hair Salons and Beauticians

In hair salons, non-industry class codes can help you save on workers' compensation premiums for roles that don’t involve hands-on beauty services. For example, Class Code 8810 applies to office staff, such as receptionists, bookkeepers, or managers, whose tasks are administrative in nature and carry much lower risk. This class code is commonly used for clerical roles in many industries, and salon owners can use it to reduce their workers' comp costs.

However, it's important to note that this code cannot be applied to stylists, colorists, or anyone performing direct salon services. These roles must be classified under industry-specific codes.

How Hair Salon and Beautician Class Codes Affect Insurance Rates

Class codes help insurance companies determine a business's risk level and, in turn, calculate the cost of workers' compensation insurance. Jobs with higher risks will have higher premiums to cover potential injuries, while those with lower risks typically have more affordable policies.

For hair salons, the average cost for workers’ comp insurance falls around $0.52 per $100 of payroll. Since hair salons generally involve minimal physical risk, so their rates tend to be lower than higher-risk industries. However, the premium may vary depending on the specific services provided and your state. Rates from selected states are shown in the chart below.

Hair and Beauty Salons (Class Code 9586) Rates per State – 2025

These starting rates are based on the industry’s general risk. However, your actual premium will depend on the unique risks your salon faces.

Insurance carriers calculate your premium using an experience modifier (ExMod), which reflects your history of workers' comp claims.

If your ExMod is 0.95, you’ll see a reduction in your premiums compared to the average for other salons. If your ExMod exceeds 1, your premiums will be higher due to past claims.

Focusing on workplace safety and minimizing claims will help lower your ExMod and, in turn, reduce your premiums.

Curious how these rates affect your business? Check out our Guide to Workers' Compensation Insurance for Hair Salons Cost for more details.

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Getting Your Salon Workers’ Comp Class Codes Right

To make sure you’re not overpaying for workers' compensation insurance while still keeping your salon employees protected, accurate class codes are essential.

Why is it so important? Class codes represent the risk level for specific roles. If an office worker is misclassified under a higher-risk role, your workers’ comp premiums can skyrocket unnecessarily. For example, a receptionist should be classified differently than a stylist, as their risk levels are significantly different.

Here’s how to make sure your class codes are accurate:

Work with your insurance agent

Your agent is an expert at helping you navigate the complexities of workers’ comp codes. By consulting with them, you’ll get the correct classification for every employee, ensuring the best rates possible.

Review employee roles regularly

People change roles within a business, so keep their job descriptions up to date. Regularly check that your workers' roles align with their class codes to avoid paying for coverage you don't need.

Stay up to date

Class codes and risk rates aren’t static. Modern safety equipment, new job responsibilities, and industry changes all affect the risk level. Keep an eye on any updates to ensure you're not left paying more than necessary.

Find the Right Workers’ Comp Coverage for Your Salon

Not sure which class code your salon employees should be under? We can help. Start an instant quote now or call 886-338-8823. We specialize in providing workers’ comp for hair salons and beauticians and can make sure you get the coverage that fits your needs.