Imagine a large mall in Jakarta bustling with customers, shops packed, and activity non-stop. Suddenly, a ceiling collapses, a slippery floor causes a fall, or even a small fire in the food court spreads to other tenants. Who is responsible?
All such risks fall on the building owner or manager. This is where public liability insurance becomes a mandatory “financial shield” for every commercial property business, such as malls, hotels, and office buildings.
However, simply having a policy isn’t enough. Many building managers make the mistake of purchasing insurance directly from an insurance company or through an agent and end up trapped when a claim arises. However, only a professional insurance broker like L&G Insurance Broker has the expertise and legality to help customers resolve claims to completion.
A broker is not just a policy seller, but a risk advisor who stands on your side, not the insurance company.
👉 Contact us for a free consultation via WhatsApp at 08118507773 or email to halo@lngrisk.co.id.
Our team of experts is ready to help you analyze the risks of your commercial property and prepare the best protection according to your needs.
Why Are Malls, Hotels, and Commercial Buildings Vulnerable to Risk?
The larger the building, the greater the legal liability. As the owner or manager of public property, you bear potential legal risks to third parties, including visitors, tenants, and suppliers.
Here are some real examples that often occur:
- Mall: Visitors slip on freshly mopped floors, or vehicles are damaged in the parking area due to negligence of staff.
- Hotel: Guests injured due to electrical leaks or elevator jams.
- Office building: A fire caused by a short circuit in one of the tenants spread to other rooms, causing major losses for the tenants.
All of these cases can result in legal claims for damages, which can range from hundreds of millions to billions of rupiah, depending on the extent of the damage and who was harmed.
Without public liability insurance coverage, these losses must be borne directly by the building management or owner. Not only is money lost, but a business’s reputation can be destroyed overnight.
What is Public Liability Insurance?
Public Liability Insurance is a policy that provides legal and financial protection to business owners against claims from third parties (such as guests, visitors, tenants, or the general public) resulting from bodily injury, death, or property damage caused by your business activities.
In the context of commercial buildings:
- Insured: owner or manager of mall, hotel or building.
- Third parties: visitors, hotel guests, tenants, vendors, or anyone who experiences harm on your property premises.
This policy covers the costs of:
- Compensation for losses determined by the court or agreed upon with a third party.
- Legal and attorney fees during the claims settlement process.
- Medical costs if a third party is injured due to your negligence.
In other words, public liability is not just financial protection—it’s also a tool to protect your business’s reputation.
Real Case Study: When a Claim Can Save a Business
- The Mall Case in Surabaya
A small child slipped on a slippery food court and broke his hand. His parents sued the mall management for not posting a wet floor warning sign. The total claim: Rp 280 million (medical expenses and legal compensation). Fortunately, the mall had public liability insurance, so the insurance company reimbursed all costs. - Hotel Case in Bali
A foreign guest sued the hotel for burns caused by a short circuit in the bathroom water heater. The hotel was ordered to pay nearly Rp 1.2 billion in compensation and legal fees. Without insurance, this case could have been disastrous for the hotel’s finances. - Office Building Case in Jakarta
The elevator jammed, trapping several tenant employees and causing asphyxiation. The tenants demanded compensation for negligent maintenance of the building’s facilities. Public liability insurance covered all compensation and legal costs totaling Rp 450 million.
Claims like these can be a lifesaver for your business, provided your policy is structured correctly and you have an experienced broker with you.
Why Not Just Buy Directly or Through an Agent?
Many entrepreneurs think that buying a policy directly from an insurance company will be faster and cheaper. In reality,they actually suffer huge losses when a claim occurs.
Here are some important facts:
- Agents work for insurance companies.
Their focus is on selling policies, not protecting you from potential denied claims. - Brokers work for clients.
Brokers have official permission from the OJK to represent your interests, not the insurance company. - When a claim occurs, The broker acts as your negotiator and advocate.
They gather evidence, prepare documents, and communicate directly with insurers to ensure your claim is paid as you deserve. - Brokers can customize policy wording.
Agents do not have the authority to negotiate clauses or adjust the guarantee to your business risks.
This is why L&G Insurance Broker always emphasizes:
“Don’t buy a policy directly from an insurance company, or even from an agent. Buy through a broker.”
Because when trouble comes, only brokers will stand by your side.
Why Public Liability Insurance is Important for Malls and Hotels
- Protect against Lawsuits
Every small incident can become a major legal case. In the digital age, a video of a customer falling can go viral and trigger a public lawsuit. With public liability insurance, you can focus on running your business without fear of bankruptcy due to lawsuits.
- Requirements for Tenants and Investors
Many major tenants (such as Starbucks, Uniqlo, or Gramedia) require mall managers to have an active public liability policy as part of their lease. Investors are more confident investing in properties with comprehensive risk protection.
- Maintain Business Reputation
An incident without a professional response can damage your reputation. With insurance support, resolution can be swift and transparent, without social media drama.
- Ensure Operational Continuity
A large claim can halt a business’s cash flow. With public liability protection, a company can continue operating while professionally resolving legal claims.
What is Covered in a Public Liability Policy for Commercial Property
- Injury or death of a third party on the property premises
- Damage to third party property resulting from activities in the building
- Legal, attorney and court fees
- Third party emergency medical expenses
- Liability resulting from the activities of staff, contractors, or vendors on site
In addition, the policy can also be extended (endorsement) to include:
- Promotional activities, exhibitions, or events in mall/hotel areas
- Temporary renovation activities
- Responsibility for food/beverage products in hotels and restaurants
Brokers like L&G Insurance Broker can help tailor all of these extensions to suit the character of your business rather than just “copying and pasting” standard policies.
How Brokers Work for You
- Risk Analysis
The broker team analyzes every potential legal and operational risk in your property from security systems, number of visitors, to contracts with tenants. - Custom Policy Design
Brokers not only select available policies, butdesign special guaranteeswith wording that protects your real risks. - Premium and Clause Negotiation
Because they have a wide network with many insurance companies, brokers can negotiate more competitive premiums while adding clauses that protect your position. - Claims Assistance
When a disaster strikes, the broker team immediately steps in. They prepare claims reports, handle administration, and ensure claims payments are made according to the policy agreement. - Periodic Audit & Review
Brokers also help evaluate policies annually to keep them relevant to changing business conditions.
Conclusion
Amidst increasing public mobility and increasingly complex legal requirements, public liability insurance is no longer an option, but a requirement. Owners and managers of malls, hotels, and commercial buildings must be aware that a small incident can result in significant losses.
However, protection won’t be complete without the assistance of a professional broker. Agents simply sell policies. Insurance companies simply pay claims according to the terms and conditions. But insurance brokers like L&G Insurance Broker are the ones who advocate for you, prepare all the paperwork, and ensure claims are properly processed.
Consult now about your public liability insurance needs with L&G Insurance Broker.
Contact us on WhatsApp 08118507773 or email halo@lngrisk.co.id for a FREE consultation and analysis of your business risks.
