The goods movement through road is always increasing within state or inter-state level. There are more and more accident occurs on the road due to heavy trucks movement. Looking to this fact the truck insurance is essential. There are different coverage provide by the insurance company to the truck cargo industry. In majority of the accidents the third party are always get more damage than the truck, and the truck cargo company has to bear the financial losses. In that situation the truck insurance company give protection by offering the third party coverage under primary liability coverage. There are five reasons for selecting the primary liability coverage such as: 1.The primary liability coverage give protection from the third party damage or injury incase any accident occurs. 2.The primary liability coverage is made compulsory by state and federal agency so the truck cargo company must have to give evident of coverage to the state and federal agencies. 3.The insurance company provides third party coverage from $35,000 to $1,000,000. The premium is depends on area, records of driving, and year of the company in operation. Policy limits are for operations with trucks over 10,000 gross vehicle weight needs $750,000 policy coverage. This limit is set by the FHWA on interstate travel that compare with the various States. 4.The primary liability coverage gives full protection for the third party injury or damage so the company may save money in case of major accident take place. However the premium is high but the protection is greater. 5.The primary liability coverage is made compulsory by the State and Federal agencies, it is essential for the large truck fleet operating companies because if more accident occurs the company could not be able to cope up the financial losses. It is utmost essential to have the proper third party coverage because there are greater chances of road accident and damage to the third party that’s why the State and Federal agencies mandate the primary liability coverage. It is not the burden but protection from huge losses some time.
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