When Premiums Are Paid, But Claims Are Not Paid
Many business owners in Bogor, whether they have factories in Gunung Putri, shophouses in Cibinong, warehouses in Sentul, or resorts in Puncak, complain with similar sentences:
“You’ve been paying premiums for years, but when disaster strikes, your claim is made difficult or even rejected!”
Cases like this aren’t uncommon. From factory fires and floods destroying warehouses to logistics trucks lost in transit, business owners are often left stressed when faced with the complex insurance claims process.
This problem isn’t simply due to insurance companies’ unwillingness to pay, but rather a mismatch between the actual needs of the business and the terms of the purchased policy. This is where the role of PT. Liberty and General Insurance Broker (L&G Insurance Broker) becomes crucial—not just selling policies, but also acting as a risk advisor and claims advocate who advocates for the client’s interests.
The Plastic Factory in Gunung Putri Claims It Hasn’t Disbursed Liquid Water
Let’s start with a true story from the Gunung Putri area, Bogor Regency.
A medium-sized plastics factory experienced a major fire in its production area overnight. Losses are estimated at Rp 12 billion. The owner was confident everything was safe because he had fire insurance from a major company.
But when the claims team arrived, the final results were surprising:
claim rejected.
The reason?
- The insurance value turned out to be far below the actual value (underinsured).
- The policy does not cover damage due to short circuits, even though that is the main cause of fires.
- There are no electrical equipment maintenance reports as evidence that the company is following safety procedures.
The factory owner felt betrayed. “If this is how it’s going to be, why should I pay the premium every year?” he complained.
Problems like this often occur because insurance policies are purchased without in-depth risk analysis and without professional assistance.
Why Are Insurance Claims in Bogor Often Rejected?
As a growing industrial and commercial area, Bogor has thousands of businesses — from food factories, logistics companies, building contractors, to tourist resorts in Puncak.
However, many people still rely on purchasing insurance directly without understanding the details of the coverage. Here are five main reasons why claims often go wrong:
- Police are not in tune with the real risks
Many companies just take the “standard package” without adjusting to the conditions on the ground.
For example: a factory that operates with heavy machinery but only purchases a basic fire policy without additional machinery or business interruption risks (Machinery Breakdown / Business Interruption).
As a result, when machines break down or production stops, huge losses are not guaranteed.
- Unrealistic Insurance Value (Underinsurance)
This is a classic mistake. Many business owners choose low coverage levels for cheaper premiums.
In fact, when a claim occurs, the insurance company will calculate pro rata, only paying a small portion of the loss value.
Example:
Assets worth Rp 10 billion are only insured for Rp 5 billion.
When a fire damaged assets worth Rp 4 billion, the claim paid was only around Rp 2 billion.
- No Assistance During Claims
When disaster strikes, many entrepreneurs don’t know the right steps:
- When should you report to insurance?
- What documents must be prepared?
- How to answer investigators from the insurance company?
Without professional guidance, reports can be wrong or late — and that can invalidate claims.
Brokers like L&G play an active role from day one: assisting with reporting, overseeing surveys, ensuring complete reports, and negotiating for maximum claim payments.
- Administrative & Document Errors
Little things like:
- The fire certificate has not been updated,
- Proof of premium payment has not been recorded,
- The employment contract does not list the insured party,
… can cause insurance companies to reject claims on administrative grounds.
L&G has an Insurance Management File system, which ensures all documents are in order and ready at all times.
- No Periodic Policy Evaluation
Businesses continue to grow, but many companies do not update asset values and types of protection.
As a result, the police that were once appropriate became irrelevant.
Insurance brokers like L&G conduct annual policy reviews to keep policies in line with business developments.
How Insurance Brokers Like L&G Can Help Business Owners in Bogor
Most of the problems above could actually be avoided if entrepreneurs were accompanied by a professional broker from the start.
Here’s how PT. Liberty and General Insurance Broker (L&G) works to assist clients in Bogor and the surrounding areas:
- Comprehensive Risk Analysis
The L&G team went directly to the business location to conduct a risk survey.
They assess the condition of the building, potential hazards, security systems, asset value, and operational flow.
The result is not only a report, but also a risk mitigation strategy and recommendations for the most appropriate type of insurance.
Example:
For the factory in Cileungsi, L&G recommends a combination of:
- Property All Risks (PAR)
- Machinery Breakdown (MB)
- Business Interruption (BI)
- Public Liability (PL)
This package covers physical assets, machinery, production losses, and legal liability to third parties.
- Negotiation with Insurance Company
Brokers act as representatives of clients, not representatives of insurance companies.
L&G has an extensive network with dozens of leading insurance companies in Indonesia, enabling them to negotiate the best premiums and policy terms that are most beneficial to clients.
- Policy Monitoring and Annual Renewal
Every year, business conditions can change — adding assets, opening branches, or increasing production capacity.
L&G will review all policies and recommend updates to ensure there are no gaps in coverage.
- Assistance During Claims
This is the most important part and what differentiates a true broker from just a policy seller.
When a disaster occurs, the L&G Claims Division team:
- Assist in preparing claim reports,
- Coordinate with adjusters and insurers,
- Ensure documentation is appropriate,
- And negotiate so that claim payments are made fairly and quickly.
Main goal: to fully secure client rights.
Another Case Study: A Hotel in Puncak That Finally Won Its Claim
A resort hotel in the Puncak area nearly lost its claim after the ballroom roof collapsed due to extreme rain.
The insurance company initially argued that the damage was caused by “lack of maintenance” and was not covered by the policy.
However, after L&G stepped in:
- The team conducted an independent technical investigation,
- Indicates that the damage was caused by excessive water load due to extreme rainfall (natural risk),
- Resubmit a complete claim report with structural evidence.
The result: claims worth Rp 3.8 billion were finally paid in full.
Why Are Many Business Owners in Bogor Now Turning to Insurance Brokers?
Trends in recent years show that more and more companies in Bogor, Cibinong, Sentul, and Sukabumi are starting to use the services of professional insurance brokers.
The reason is simple:
- They don’t want to experience the incident of a claim being rejected again,
- Want to have a professional team that is on their side, not the insurance,
- And want to make sure the premiums paid actually provide real protection.
How L&G Works With You
L&G Insurance Broker has over 30 years of experience serving clients across various sectors: industry, construction, energy, logistics, property, and hospitality.
For the Bogor area and surrounding areas, L&G services include:
- Risk analysis of factory & warehouse locations,
- Design of insurance programs specifically for industrial sectors,
- Assistance in preparing tender documents (for construction projects),
- Regular policy monitoring and risk reporting,
- 24/7 consultation and claims assistance.
What You Can Do Now
If you are a business owner in Bogor, ask yourself the following questions:
- Do I know for sure what risks are covered by my policy?
- Does the insured value match the current asset value?
- Will I have a professional companion when I file a claim later?
If you cannot answer the three questions above with confidence, it’s time to consult with an L&G Insurance Broker.
Conclusion: Don’t Let Your Premiums Go to Waste
Unsuccessful insurance claims are not just a technical issue — they reflect a lack of guidance and understanding of the risks from the outset.
With the support of PT. Liberty and General Insurance Broker (L&G), businesses in Bogor no longer need to feel betrayed by complicated insurance systems.
L&G will ensure that every rupiah of premium you pay provides real protection, certainty when disaster strikes, and peace of mind in running your business.
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DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM: 0811-8507-773 (CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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