Liga Asuransi – As the year draws to a close, the business world is often busy with various things—from meeting sales targets, completing financial reports, to developing work plans for the following year. Amidst this hustle and bustle, there’s one important thing that’s often overlooked:protection against business risks.
In fact, the fourth quarter (Q4) is often the most critical period of the year. Operational pressures increase, extreme weather begins to impact supply chains, and several regions in Indonesia face the risk of disasters such as flooding and strong winds. Meanwhile, global economic uncertainty, exchange rate fluctuations, and rising raw material prices further burden businesses.
Unfortunately, there are still many companies—both medium and large scale—thatdo not have adequate insurance coverage, or have not even insured their important assets at all.
As a result, when an incident occurs, the impact is not only physical damage, but alsothreaten the company’s financial stability.
At times like these,The role of insurance is the key to saving business.
Insurance not only functions as a safety net when disaster strikes, but also as aessential risk management strategiesto maintain the continuity of operations and the company’s reputation.
That’s why,L&G Insurance Brokers, as one of the leading insurance brokers in Indonesia, invites you tolooking back at business conditions at the end of this year. Because in the world of risk, what is dangerous is not the disaster itself — butunpreparedness to face it.
2025 in Flashback: A Year of Warnings for the Business World
2025 will be one of the most challenging years for the Indonesian business world. A series of major incidents across various sectors demonstrate thatrisks can come at any time, even in businesses that seem safe.
Here are some incidents that are important alarms for industry players to start reviewing their protection:
1. Major Fire in Cikarang Industrial Area (February 2025)
A massive fire swept through an industrial area in Cikarang, destroying tens of thousands of square meters of warehouses and manufacturing plants. Losses are estimated at over Rp 200 billion.
Many tenants in the area apparently lacked property or stock insurance, requiring them to cover all recovery costs themselves. Some businesses were even forced to shut down operations for months—proving how a single incident can disrupt the national supply chain.
2. Floods and Extreme Weather in Semarang and Bekasi (March 2025)
Early March was marked by massive flooding that paralyzed several industrial cities. Logistics warehouses, distribution centers, and even cold storage facilities suffered significant damage. Extreme weather is no longer just a seasonal issue, but aoperational realitywhich must be faced every year.
Without Property All Risks or Business Interruption Insurance protection, losses will not only be in the form of physical damage, but alsoloss of income due to the cessation of operational activities.
3. Earthquake in Central Sulawesi (May 2025)
A 6.8 magnitude earthquake struck Central Sulawesi, causing damage to surrounding energy and mining infrastructure. Several contractors suffered significant losses.does not include a Force Majeure Insurance clausein their employment contract.
This case reaffirms thatprojects without adequate insurance are tantamount to opening the door to bankruptcy.
4. Cyber Data Leaks in Logistics Companies (July 2025)
A data breach incident involving a national logistics company has drawn public attention. The leaked customer data has led to a drastic decline in client trust.
Without Cyber Liability Insurance, companies are left to cover legal costs, customer compensation, and IT system repairs themselves—totaling losses reaching tens of billions of rupiah. This trend demonstrates that risks in the digital age are now as real as physical risks..
5. Workplace Accidents in Infrastructure Projects (September 2025)
A toll road project in West Java experienced a work accident that resulted in a fatality. In addition to lost productivity, the contractor is also facing legal action from the victim’s family.victim.
Unfortunately, most of the subcontractors on the project lacked Workers’ Compensation or Contractor All Risks (CAR) insurance. As a result, financial and reputational losses became a heavy burden at the end of the year.
All of the above examples send one clear message: Without insurance, your business is just one step away from crisis.
In a year as uncertain as 2025, many companies are finally realizing that insurance premiums are far less than the cost of recovering without coverage. Unfortunately, that realization often comes after the fact.
The Dangers of Not Having Insurance at the End of the Year
Many business owners view insurance as an additional expense, not a strategic necessity. Yet, at the end of the year, not having insurance could be the most fatal mistake in a company’s financial management.
As the year draws to a close, there are several key risks that are rising and often go unnoticed:
1. Increased Financial Risk
Without insurance coverage, even a small incident can result in major financial losses.
Imagine, a warehouse that burns down in December not only loses assets, but also loses year-end sales momentum.
When a company’s cash is running low due to operational expenses and employee bonuses, there is no room to absorb sudden losses.
With insurance, the financial burden of damage or loss can be directly transferred to the insurance company, allowing the business to remain liquid.
2. Missing Business Opportunities at the Beginning of the Year
Many new projects, government tenders, or large contracts require proof of active insurance — from Public Liability to Contractor All Risks.
Without a policy in place, companies could miss out on strategic partnership opportunities simply because they fail to meet administrative requirements.
Insurance brokers often help companies prepare insurance certificates on time so as not to miss opportunities at the beginning of the next fiscal year.
3. Legal Risks and Third Party Liability
Without Public Liability Insurance, businesses are vulnerable to third-party lawsuits resulting from accidents or damage occurring in their operational areas. Legal costs and compensation can reach billions of rupiah, and without coverage, the company faces the burden.
4. Business Reputation at Risk
Unexpected events such as workplace accidents, fires, or data breaches not only cause financial losses but also damage the trust of clients and partners. Companies with insurance appear more professional, credible, and prepared to face risks, while those without insurance often lose their reputation in the marketplace.
5. No Umbrella When Crisis Comes
2025 has proven that crises can come from anywhere—from natural disasters to supply chain disruptions to cyberattacks. Without insurance, all these risks must be borne alone, and a single major event can be enough to shake the foundations of a business that has been built for years. As the old business adage goes: “Cash flow kills faster than crisis.” And insurance is the only tool that can keep cash flow alive when disaster strikes without warning.
Why Q4 Is the Best Time to Own or Evaluate an Insurance Policy
For many business owners, the fourth quarter is synonymous with closing the books, internal audits, and preparing the budget for the following year. However, on the other hand, Q4 is also a time for…strategic momentto review the extent to which the business has been protected from risks.
1. The Right Time for Risk Evaluation
By the end of the year, companies usually have a clear picture of their financial performance, asset conditions, and business projections.
This is the best time to do itrisk audit: identify which areas are most vulnerable — whether in terms of property, operations, legal liability, or digital risks.
With this evaluation, you can ensure that your policy is still relevant or needs to be updated to reflect asset values and changes in business activities.
2. More Competitive Premiums and Negotiation Flexibility
The end of the year is often a period when insurance companies and brokers offerprogram review polis as well as competitive premium offersto close the annual target.
With the support of professional brokers such asL&G Insurance Brokers, you can getbest premium negotiationwithout having to sacrifice the quality of protection.
Independent brokers are also able to compare different products from multiple insurance companies, ensuring youget the most efficient protection in terms of costs and benefits.
3. Preparing to Face the Uncertainty of the Next Year
2025 is a reminder that change can happen suddenly: natural disasters, fiscal policy, climate change, and even geopolitical risks. By preparing protection at the end of the year, you will enter2026 with a more prepared and stable position.
Insurance is not only a means of protection, but alsobusiness resilience strategywhich helps companies remain resilient in the face of economic fluctuations and unexpected risks.
4. Ensure the Insurance Value is in Line with the Latest Asset Value
Often, businesses grow faster than expected—adding new warehouses, purchasing additional machinery, or expanding projects. Unfortunately, old insurance policies aren’t always updated to reflect these developments. As a result, many companies find themselves in a precarious situation.underinsured: have insurance, but the insured value is far below the actual asset value.
By conducting a review in Q4, you can adjust the coverage value so thatmaximum protectionif a claim occurs.
5. Momentum to Reimagine Risk Management
The end of the year is a time for reflection and improvement. Adding insurance protection to your corporate strategy means a more thorough restructuring of your business’s foundations. It also demonstrates that your company hashigh commitment to governance and sustainability (ESG)— an important point for many partners and investors in the modern era.
Often Overlooked Year-End Risks & How to Mitigate Them
As the year draws to a close, most companies are busy closing financial statements, meeting sales targets, and preparing business plans for the coming year. Yet, it’s precisely at this time that the greatest risks often arise and are often overlooked.
Here are some typical year-end risks that every business actor must anticipate:
1. Activity Surge and Operational Fatigue
The end of the year is synonymous with overtime, increased production volumes, and busier-than-usual distribution. However, these conditions significantly increase the risk of human error, fires, or machine breakdowns.
Solution: Make sure your Property All Risks (PAR) and Machinery Breakdown policies are active and up to date with the current coverage value.
2. Extreme Weather and Natural Disturbances
Q4 2025 is predicted to experience weather anomalies and increased intensity of extreme rainfall due to the effects of an unstable El Niño–La Niña. This will directly impact warehouses, construction projects, and logistics fleets.
Solution: Make sure you have Flood Extension on your property or warehouse policy.
3. Fraud and Cybercrime
As the year draws to a close, many online transactions and financial reconciliations are completed in a short timeframe. Phishing, ransomware, and data breach incidents increased significantly in Q4—particularly targeting companies without cyber insurance.
Solution: Protect your business data and reputation with Cyber Liability Insurance.
4. Third Party Liability
Businesses in the retail, manufacturing, parking, and event sectors often face potential liability claims due to accidents or damage to other parties’ property in their operational areas.
Solution: Have Public Liability Insurance to protect the company from lawsuits that could drain year-end cash.
5. Big Claims at the End of the Year
As the year draws to a close, several insurance companies are tightening their claims processes as loss ratios increase.
Companies that do not understand the details of the policy oftennot get full compensationdue to administrative errors or hidden exceptions.
Solution: Use servicesprofessional insurance broker like L&G Insurance Brokersto ensure your claim goes smoothly and fairly.
Conclusion & Recommendations
As 2025 draws to a close, the business world faces a harsh reality: risks are increasingly complex and unpredictable. From industrial fires and major floods to earthquakes and cyberattacks—all events throughout the year serve as reminders that without insurance, even the strongest businesses can collapse overnight.
Many businesses are still delaying purchasing or renewing policies, claiming they want to reduce costs at the end of the year. However, this step actually opens the door to potentially much greater financial losses. Not having insurance in Q4 is tantamount to opening the door for risks to enter unopposed.
Strategic Recommendations for Businesses Approaching the End of 2025
- Conduct a Comprehensive Risk Review
Review your assets, contracts, and operations. Ensure all significant risks—whether property, legal liability, or digital—are covered by active policies. - Update Coverage Amount and Policy Conditions
Inflation and rising asset values often make coverage no longer appropriate. Adjust your coverage accordingly to avoid being underinsured in the event of a claim. - Prepare Protection for Seasonal Risks
The end of the year is often marked by extreme weather and high business activity. Ensure your policy includes flood extension, business interruption, and public liability coverage. - Pay Attention to Digital Protection
Cyberattacks are now targeting not only large corporations but also medium-sized businesses. Make sure you haveCyber Insuranceas a shield against data and reputation loss. - Use a Professional Insurance Broker
Don’t navigate the complexities of a policy alone. An insurance broker like L&G Insurance Brokers will ensure you get the right, efficient, and fair coverage when making a claim.
The end of the year is no time to gamble with risk. Every business that survives until Q4 2025 has worked hard through economic pressures and market uncertainty—don’t let one incident destroy all that success. With L&G Insurance Brokers, you’re not just buying a policy—you’re buying peace of mind and business continuity.
Contact L&G Insurance Brokers today for a free insurance review before the end of the year. Make strong protection your business resolution to enter 2026 with more security, certainty, and resilience.
HOTLINE L&G 24 JAM: 0811-8507-773 (PHONE – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
