While liability insurance covers damages or injuries caused to other parties in accidents where the commercial truck driver is at fault, cargo insurance is specifically designed to protect the cargo being transported by the commercial truck. Cargo insurance is not always required by law, but it may be required by shippers or customers who want to ensure that their goods are protected during transport. Therefore, while liability insurance is mandatory, cargo insurance is often a wise investment for commercial trucking businesses to protect their own assets and reputation in case of cargo damage or loss.