Interesting dilemma, do you sell or buy based on logic or fear. If you spend a few minutes looking up choking statistics you can make a strong case you buy these out of fear. See statistically there are much worse causes than hot dogs. Logically you or I can say well if the flat hot dog eliminates this risk than it makes sense. But does it? Maybe it makes more sense to think through the whole problem; is the person seated, did they take a reasonable size bite are there adults near buy who can supervise end or help if something happens?
Not much different than anything else in life.
So the insurance part; the hope from the insurance company side is that you buy more products or coverage because of the fear of the unknown. Why else would they show you a courtroom? Maybe they just ran out of ways to promote discounts. Instead come up with your own base line of how much coverage you want or feel you should have. THERE IS NO PRACTICAL OR IMPRACTICAL WAY TO COVER YOURSELF FROM EVERYTHING. So do the best you can, apply some thought and basic logic, the results will be there.