Digital health is moving fast and nowhere faster than in the world of GLP-1 weight loss medications. Platforms offering semaglutide or tirzepatide-based treatments (including compounded versions) are scaling quickly.
But behind the growth lies a complex and growing risk: product liability exposure.
If your company offers compounded GLP-1s through a telehealth or digital platform, here’s what you need to know.
The Rise of Compounded GLP-1 Medications
GLP-1 medications like Ozempic and Mounjaro are in high demand, but FDA-approved supply has been limited. To meet that demand, many digital health platforms have turned to 503A and 503B compounding pharmacies to offer semaglutide or tirzepatide alternatives.
Here’s the catch: these compounded drugs are not FDA-approved, and your platform may carry more product liability exposure than you think.
Why Product Liability Risk Is Rising
Even if your platform:
- Doesn’t manufacture the drug,
- Partners with licensed compounding pharmacies,
- Has disclaimers in place…
…you can still be pulled into product liability claims as a seller, distributor, or facilitator.
Under current legal precedent, plaintiffs’ attorneys often name every party in the supply chain, including:
- The prescribing platform
- The digital health tech company
- The marketing entity
- The pharmacy
If your brand touches the transaction, you may be exposed.
The GLP-1 Compounding Complication
Semaglutide and tirzepatide are difficult to compound consistently. Some compounded versions:
- May use semaglutide salts instead of the base (less studied in humans)
- Vary in dosage, formulation, or delivery
- Could cause adverse reactions, triggering lawsuits
And that inconsistency creates uncertainty for underwriters, which means:
✅ Higher premiums
✅ Narrower coverage
✅ More exclusions (like “unapproved compound” carveouts)
The Coverage Gap Most Platforms Miss
Many digital health companies carry Technology E&O or General Liability but skip true Product Liability or Clinical Trials coverage.
That’s a problem.
If you’re not listed as a named insured on the compounding pharmacy’s product policy or if your own policy doesn’t extend to bodily injury or adverse reaction claims, you’re unprotected.
What Smart Founders Should Do Right Now
- Review your contracts with pharmacies.
Do you have proper indemnification language? Are you relying on their insurance, or carrying your own?
- Understand your placement in the supply chain.
Are you facilitating prescriptions, fulfilling orders, holding inventory, or branding the product?
- Audit your insurance program.
If you’re offering GLP-1 compounds — or even marketing them — talk to a broker who understands emerging digital health risks.
🛡️ How The Bunker Can Help
At The Bunker, we specialize in helping fast-moving health companies uncover hidden product liability risks before they become lawsuits.
We work with:
- Digital health platforms
- Wellness startups
- Telehealth tech companies
- Concierge medicine brands
If you’re scaling fast, expanding your offerings, or unsure how your current coverage stacks up — we’ll help you get clear and covered.
📞 Fill out this form to have one of our licensed agents help you protect what you are building!
Let’s make sure your growth doesn’t outpace your protection.