Product liability insurance is necessary, if you are the owner of a drug company. Even if you have the best drug ever developed in the lab, some patient down the line is going to have a major adverse reaction. Then, you will be sued for damages, even if it was through no fault of your own. However, insurance is not the limit of your responsibility. You will need to be aware of the consumer protection laws that look out for the interests of the person who purchases your medication. You need to know what you should do regarding the full disclosure of any potential bad reactions to the medicine, even though it will do a lot of good for the majority of patients.