Drug companies must have product insurance. Liability is part of the territory. If a consumer has an adverse reaction to the medication, that causes illness, injury, or death, insurance could save your company. If they have a case and win, the judgment could be for millions of dollars. Whether it is for future medical care, pain, or suffering, you will have to pay up, especially if you neglected to include certain risks or drug reactions on the label. However, the insurance does not absolve the company of the responsibility to disclose both the pros and cons of any medication you manufacture. It simply means you will not lose your proverbial shirt, if a person or group wins a lawsuit. You will have to go by the consumer protection laws, or the insurance may not cover your liability.