I started making my own organic aftercare balm—shea butter, lavender, the works. I sold it at the front counter. A client bought a tin, used it, and broke out in a massive blistery rash. She claimed the essential oils burned her fresh tattoo. She sued me for Product Liability. My tattoo insurance agent said, “We cover tattooing. We don’t cover manufacturing cosmetics.”
Key Takeaways
- Retailer vs. Manufacturer: Selling big-brand lotion (retailer) is low risk. Mixing and selling your own lotion (manufacturer) is huge risk.
- “Products-Completed Operations”: You need this specific coverage line item. If you make your own stuff, you need a policy that covers “Manufacturing/Distributing Cosmetics.” Standard tattoo policies often exclude this.
- Labeling Laws: If your homemade balm doesn’t comply with FDA labeling regulations (ingredients, warnings), your insurance might deny the claim for “Illegal Acts” or regulatory non-compliance.
- Stick to Big Brands: The safest route is to sell established brands (Aquaphor, Hustle Butter). If they cause a rash, the liability shifts to them.
The “Why” (The Trap): The “Manufacturing” Exclusion
Standard Tattoo Professional Liability covers the service (the ink in the skin).
It typically excludes liability arising from goods or products manufactured, sold, or distributed by you, unless they are “incidental” to the service.
Selling a $20 tin of homemade balm is a separate business line. It requires Product Liability Insurance.
The Investigation: “I Called Them”
I asked about coverage for “House Brand” aftercare.
1. Selling “Hustle Butter” (Third Party)
- Risk: Low.
- Insurance: Covered under standard “Retail Sales” liability. If sued, the manufacturer defends the product.
2. Selling “Mike’s Magic Mix” (Homemade)
- Risk: Extreme.
- Insurance: My tattoo carrier said, “We exclude any product you manufacture.” I would need a separate “Cosmetics Manufacturer” policy (~$1,000/yr).
Comparison Table: Selling Aftercare
| Activity | Insurance Status | Risk Level |
| Giving Free Sample (Big Brand) | Covered | Low |
| Selling Big Brand | Covered | Low |
| Selling Your Own Mix | Excluded (Need Product Liab.) | High |
| Re-bottling Big Brand | Excluded (Tampering) | High |
Step-by-Step Action Plan
- Stop Mixing: Unless you are ready to be a cosmetics company with insurance and lab testing, stop making your own aftercare.
- White Labeling: If you want your logo on it, pay a professional lab to “White Label” their approved formula. Their manufacturing insurance usually covers the product safety.
- Check Your Policy: Look for “Products & Completed Operations” limit. Ensure it is at least $1 Million.
- Ingredient Lists: Even if you just hand out samples, stick a label on it with ALL ingredients. Allergies (nut oils) are the biggest lawsuit trigger.
FAQ
Q: What if I just give it away for free?
A: You are still liable. You provided the product that caused harm.
Q: Can I re-package bulk A&D ointment?
A: No. That is “adulteration” or “re-packaging.” You lose the protection of the original manufacturer.
[IMAGE: Photo of a generic jar with a handwritten label vs. a compliant label with ingredients listed.]