You ask a good question with no simple answer. Diabetes is associated with some types of liver disease. Diabetes can increase your risk of nonalcoholic fatty liver disease (nonalcoholic steatohepatitis). This can lead to scarring of the liver (nonalcoholic cirrhosis). Also, some medications used to treat diabetes may damage the liver.
On the other hand, hemochromatosis — a condition in which your body absorbs and stores too much iron — affects both the liver and the pancreas. Damage to the pancreas can reduce insulin production and lead to diabetes. In addition, some drugs used to treat liver disease may raise blood sugar levels enough to require treatment.
