Fires can occur in various sectors and under unpredictable circumstances, from factories and restaurants to ships carrying cargo. In recent incidents, fires have not only caused damage to assets and facilities but also potentially disrupted operations, damaged cargo, and even posed risks to human safety and the environment. This situation serves as a reminder that every business activity has different risk characteristics and requires appropriate management.
Here are some incidents that show how fire risks can develop into major losses for companies.
A pile-up occurred in Kembangan, West Jakarta. A motorcycle struck three people, killing three people, including a toddler.
A pile-up accident occurred on Jalan Kembang Kerep, Puri Kembangan, West Jakarta, on September 5, 2026. The incident involving three cars and one motorbike killed three people on the motorbike, namely the driver AP and two passengers YS (39) and ZZ (7). Two victims died at the scene, while AP died on the way to the hospital. Four other people suffered injuries and received medical treatment. Based on witness statements, the accident allegedly occurred when the vehicle was traveling quite fast on a downhill road. One of the cars then hit the vehicle in front of it, swerved, and hit a motorbike that was on the side of the road.
Risk Accident Review
This accident demonstrates the high risk on downhill roads, especially when vehicles are traveling at high speeds and lose control. Multiple collisions can have multiple impacts, ranging from damage to multiple vehicles to fatalities and serious injuries. The motorcycle’s position on the side of the road also indicates a potential risk to road users outside the vehicle’s path when control is lost. Mitigation can be achieved through defensive driving, speed control, maintaining a safe distance, and regular vehicle inspections. In terms of protection, vehicle owners need to consider vehicle insurance, personal accident insurance, and third-party liability insurance.
Types of Insurance Needed
- Motor Vehicle Insurance – Comprehensive / All Risk
Provides protection against vehicle damage due to accidents, including collisions and other physical damage according to policy provisions. - Third Party Liability (TPL) / Motor Vehicle Liability
It is important to anticipate legal liability if the vehicle causes injury, death, or property damage to a third party. - Personal Accident Insurance
Provides compensation to drivers and passengers if an accident results in death or permanent disability according to the policy benefits. - Passenger Personal Accident Insurance
Relevant to provide additional protection to vehicle passengers against the risk of accidents during the trip. - Employer’s Liability / Workmen’s Compensation
This can be considered if the vehicle is used in company operational activities and the victim is a worker carrying out his duties.
Tanker Truck vs. Palm Oil Truck Collision on Trans Sulawesi Road! Heavy Impact Crushes Cabin and Detaches Wheel
An accident involving a tanker truck and a palm oil truck occurred on the Trans Sulawesi Highway, Karossa District, Central Mamuju Regency, West Sulawesi, on Tuesday (September 8, 2026). The hard impact caused the tanker truck to suffer severe damage to the front, causing one of its wheels to come off. The incident occurred in front of the Salubarana Hamlet field, Lara Village, approximately 45 kilometers from Topoyo. The Central Mamuju Police Traffic Unit has conducted a crime scene investigation and collected evidence to determine the chronology and cause of the accident. Until now, the condition of the drivers of both vehicles and the extent of the damage to the palm oil truck has not been officially known and is still awaiting the results of further investigations.
Risk Accident Review
Accidents involving two heavy vehicles demonstrate the high operational risks of land transportation, particularly as the weight and momentum of the vehicles can result in impacts with significant damage. The extensive damage to the front of the tanker truck, which resulted in the wheels being detached, demonstrates the significant impact energy involved in the incident. While the cause of the accident remains under investigation, this incident underscores the importance of vehicle inspections, preventive maintenance, driver fatigue management, defensive driving, and speed control. For transportation companies and fleet owners, heavy vehicle accidents can also result in losses to vehicles, cargo, third parties, and even operational disruptions. Therefore, insurance coverage needs to be tailored to the characteristics of the vehicle and the transportation activity.
Types of Insurance Needed
- Commercial Vehicle Insurance
Provides protection for tanker trucks and palm oil transport trucks from the risk of collisions, impacts, overturning and other physical damage as guaranteed by the policy. - Third Party Liability (TPL) Insurance
Bear legal responsibility if an accident results in damage to property, other vehicles, or injury to third parties. - Goods in Transit / Marine Cargo Insurance – Inland Transit
Provides protection for cargo transported during land travel if it suffers damage or loss due to risks covered by the policy. - Personal Accident Insurance
Provides compensation to drivers or vehicle crew if they suffer injury, permanent disability, or death due to an accident. - Employer’s Liability / Workmen’s Compensation Insurance
Provides protection against company liability if a driver or worker has an accident while carrying out their duties. - Environmental Liability Insurance (especially if the tanker truck is carrying potentially polluting materials)
Can provide protection against liability due to pollution or environmental damage if the tank cargo leaks or spills due to an accident.
Oven Suspected to Be the Cause of Fire! Timber Factory in Pasuruan Fire Causes Rp5 Billion in Losses
A fire broke out at the PT Gwenelda Prima Makmur wood processing factory on the Pasuruan-Malang Highway, Pasuruan Regency, East Java, on Monday (September 7, 2026). The fire is suspected to have originated from a wood oven machine and destroyed approximately 80 percent of the oven facilities in a factory area of approximately one hectare. Dry RST Balsa wood, a blower machine, and several pieces of production equipment were also burned. Joint officers deployed four fire trucks to control the fire. Narrow road access made it difficult to extinguish the fire and obtain water. There were no casualties in this incident, but material losses are estimated at IDR 5 billion. Police are still investigating the exact cause.
Risk Accident Review
This fire at a wood processing plant demonstrates the high risk of fire hazards in facilities that use ovens and store dry wood materials. The suspected technical failure of the oven is a significant concern, as heat sources close to flammable materials can accelerate the spread of fire. Furthermore, narrow access roads can slow down the firefighting response in the event of an emergency. Companies need to ensure effective preventive maintenance of machinery, inspection of electrical installations, fire detection and protection systems, and emergency response procedures. From a risk management perspective, insurance coverage should cover assets, machinery, inventory, and potential loss of revenue due to production interruptions.
Types of Insurance Needed
- Industrial All Risks (IAR) / Property All Risks
Protects factory buildings, oven facilities, equipment and other assets from the risk of fire and other physical risks covered by the policy. - Machinery Breakdown Insurance
Relevant to protect oven machines, blowers and production machines from damage due to technical or mechanical risks covered by the policy. - Stock Insurance
Provides protection for raw materials such as dry RST Balsa wood and other supplies damaged or destroyed by fire. - Business Interruption (BI) Insurance
Covers financial losses due to disruption or cessation of factory operations after damage occurs as covered by the policy. - Electronic Equipment Insurance (EEI)
Can be considered for electronic equipment and control systems that support factory operational activities. - Public Liability Insurance
Provides protection if the company’s operational activities result in losses or legal claims from third parties. - Employer’s Liability / Workmen’s Compensation
Provides protection against company liabilities related to accidents or injuries experienced by workers in work activities.
A plastics factory in Tangerang burned for 10 hours, causing estimated losses of Rp10 billion.
A fire broke out at the PT Technoplastika Prima Perdana plastic factory in Sentul Jaya Village, Balaraja, Tangerang Regency, on Sunday (September 6, 2026). The fire destroyed three buildings with a total area of approximately 12,000 square meters and was still under control 10 hours after the incident. A total of 75 personnel and 13 fire engines were deployed to control the blaze. The extinguishing process was hampered by strong winds and limited water resources. The fire even spread to residents’ homes around the factory, but was successfully contained. There were no fatalities in the incident. Material losses are estimated at IDR 10 billion, while the cause of the fire is still under investigation.
News source: https://www.beritasatu.com/banten/3024847/pabrik-plastik-tangerang-terbakar-10-jam-kerugian-ditaksir-rp-10-m
Risk Accident Review
Plastic factory fires carry a high risk of fire because certain materials and production processes can accelerate the spread of fire and increase the potential for damage to buildings and equipment. In this incident, the affected area reached 12,000 square meters, and the extinguishing process took approximately 10 hours. Strong winds and limited water resources also complicated the handling. The risk also extended to the surrounding environment when the fire spread to residents’ homes. Companies need to ensure effective fire detection and protection systems, water availability, fire suppression systems, electrical installation inspections, and emergency response plans. From a risk management perspective, insurance coverage should cover assets, inventory, machinery, third-party liability, and potential loss of revenue.
Types of Insurance Needed
- Industrial All Risks (IAR) / Property All Risks
Protecting factory buildings, production facilities and company assets from the risk of fire and other physical risks covered by the policy. - Stock Insurance
Protect raw materials, finished products, and plastic supplies that are damaged or destroyed by fire. - Machinery Breakdown Insurance
Provides protection for production machines if they experience damage due to technical or mechanical risks covered by the policy. - Business Interruption (BI) Insurance
Covers financial losses due to the cessation or disruption of production activities after damage occurs as covered by the policy. - Electronic Equipment Insurance (EEI)
Can be considered for electronic equipment, control panels, automation systems, and operational support devices. - Public Liability Insurance
This is particularly relevant because the fire spread to people’s homes. This coverage can help protect against third-party claims for damage or injury resulting from the company’s activities. - Employer’s Liability / Workmen’s Compensation
Provides protection against company obligations if workers experience injuries or accidents while carrying out their work.
A restaurant in the heart of Seminyak was gutted by fire, causing losses of Chez Gado-Gado to exceed Rp 4 billion.
The Chez Gado-Gado restaurant on Jalan Camplung Tanduk, Seminyak, Badung, caught fire on Sunday (30/8/2026) at around 7:40 PM WITA. Badung Firefighters deployed 10 vehicles and used around 115,000 liters of water to extinguish the fire that engulfed the building measuring approximately 45 x 40 meters. The extinguishing process lasted around 2 hours and 40 minutes, involving firefighters, PLN (State Electricity Company), police, security, and local residents. There were no fatalities in the incident. However, material losses are estimated at IDR 4 billion, while assets worth around IDR 700 million were saved. The cause of the fire is still under investigation.
News source: https://www.detik.com/bali/berita/d-8641139/restoran-chez-gado-gado-di-seminyak-terbakar-hebat-kerugian-rp-4-miliar
Risk Accident Review
Restaurant fires demonstrate that hospitality businesses are exposed to risks not only from the building itself, but also from kitchen operations, electrical equipment, gas installations, and operational equipment. The sheer size of the burned area and the billions of rupiah in losses indicate the potential for significant financial impact. Even if a fire doesn’t result in loss of life, it can cause asset damage, inventory loss, and indefinite operational downtime. Restaurants need to ensure regular inspections of electrical installations and kitchen equipment, the availability of fire extinguishers, fire detection systems, and emergency response plans. Insurance coverage is also crucial for maintaining business continuity after a loss.
Types of Insurance Needed
- Property All Risks (PAR) / Industrial All Risks (IAR)
Protects restaurant buildings, interiors, furniture, kitchen equipment, and other physical assets from the risk of fire and other risks covered by the policy. - Business Interruption (BI) Insurance
Provides protection against loss of income and additional costs due to the restaurant being unable to operate after experiencing damage covered by the policy. - Stock Insurance
Protect supplies of food, beverages, raw materials and operational equipment damaged by fire. - Machinery Breakdown Insurance
Relevant for certain kitchen equipment and operational machines that experience damage due to technical or mechanical risks covered by the policy. - Public Liability Insurance
It’s important for restaurants because their business activities involve customers and third parties. This coverage can help protect against claims for injuries or property damage to third parties resulting from operational activities.
KM Legenda Nusantara 99 Catches Fire in Kabaena Waters! Carrying Chemicals and Heavy Equipment, 2 Crew Members Die
KM Legenda Nusantara 99 sailing from Jakarta to Morowali caught fire in the waters between Selayar Island and Kabaena Island, Southeast Sulawesi, Tuesday (1/9/2026) at around 01.00 WITA. The ship was carrying 13 crew members with a cargo of chemicals and heavy equipment. The SAR team evacuated the victims to Tampo Port, Muna, to receive medical treatment. Two crew members, Yudi Bagus (22) and John Petro (42), died in the incident. Meanwhile, the ship’s captain, Sahriar (42), suffered chemical poisoning and is still undergoing treatment. The evacuation process was carried out with the assistance of the rescue ship KM KBR Benua Dua.
News source: https://www.detik.com/sulsel/berita/d-8643836/kapal-angkut-bahan-kimia-terbakar-di-perairan-bombana-2-abk-tewas
Risk Accident Review
The fire on the KM Legenda Nusantara 99 demonstrated the high complexity of risks in maritime transport activities, particularly when ships carry chemicals and heavy equipment simultaneously. Fires not only have the potential to damage the ship’s structure and machinery but can also endanger the crew due to chemical exposure or leaks. In this incident, two crew members died and the captain suffered chemical poisoning, making crew safety a primary concern. Companies need to ensure cargo compatibility, chemical storage, fire detection and suppression systems, emergency response, and procedures for handling hazardous materials are running smoothly. Insurance coverage should also cover the vessel, crew, cargo, and third-party liability.
Types of Insurance Needed
- Marine Hull & Machinery Insurance
Protects ships and their machinery and permanent equipment from the risks of fire, explosion, collision, grounding and other marine risks guaranteed by the policy. - Protection & Indemnity (P&I) Insurance
It is essential to protect the liability of ship owners/operators to third parties, including injury or death of crew members and legal liabilities related to shipping incidents. - Marine Cargo Insurance
Protectchemicals and heavy equipmenttransported during the journey from the risk of damage or loss due to risks covered by the policy. - Crew Personal Accident / Crew Insurance
Provides protection for crew members against the risk of accidents, injury, permanent disability, or death while carrying out their duties.
A barge carrying 10,000 tons of coal catches fire at sea, spreading to a docked ship in East Lombok.
The barge Karya Star 95, carrying approximately 10,000 metric tons of coal from Samarinda to East Lombok, caught fire while docked at the PT Lombok Energy Dynamics pier on Friday (September 4, 2026). The fire was first detected in one of the coal piles while the ship was still underway. Hot weather, strong winds, and sea waves reportedly made it difficult to extinguish the fire using the ship’s water supply. The fire then spread to other parts of the cargo, forcing the ship to dock for firefighting support. Police and firefighters assisted in handling the incident. The cause of the fire and the amount of losses are still under investigation.
News source: https://suarantb.com/2026/09/05/kapal-tongkang-angkut-10-000-ton-batu-bara-terbakar-di-dermaga-pt-led/
Risk Accident Review
The coal cargo fire during shipping highlights the cargo fire risk that requires attention when transporting bulk commodities. Coal can self-heat under certain conditions, making monitoring the temperature and condition of the cargo during the voyage crucial. In this incident, hot weather, strong winds, and rough seas made extinguishing the fire difficult. The risk not only impacts the cargo but can also damage the ship’s structure and equipment, disrupting operations at the dock. Companies need to strengthen cargo monitoring, fire detection, emergency response, and procedures for handling at-risk cargo. Insurance coverage should cover the vessel, cargo, and potential third-party liability.
Types of Insurance Needed
- Marine Cargo Insurance
It is the primary protection for approximately 10,000 MT of coal against the risk of fire, damage, or loss of cargo during transit, as per the policy guarantee. - Marine Hull & Machinery Insurance
Protects the Karya Star 95 barge along with its machinery and permanent equipment in the event of damage due to fire or insured marine risks. - Protection & Indemnity (P&I) Insurance
Protecting the legal liability of ship owners/operators against third parties, including potential damage to dock facilities and impacts on other parties. - Loss of Hire / Loss of Earnings Insurance
It can be considered if fire damage causes the ship to be unable to operate and results in loss of income. - Pollution Liability Insurance
Relevant to anticipate pollution liability if a fire incident has an impact on waters or the surrounding environment. - Business Interruption Insurance
Can be considered by parties whose business activities are affected by the cessation of transportation or operational activities as a consequence of an event covered by the policy.
Conclusion
These incidents demonstrate that fire risks extend beyond physical damage. Their impacts can extend to inventory, machinery, cargo, company revenue, worker safety, and even third-party liability.
Therefore, companies need to understand the risks inherent in every business activity and ensure mitigation measures are in place before an incident occurs. Appropriate insurance coverage is also crucial for maintaining operational continuity when a risk turns into a loss.
L&G Insurance Broker is ready to help companies identify risks, develop mitigation strategies, and obtain insurance coverage that suits their business needs.
Because a resilient business is not only able to grow, but also ready to face the risks that may occur.
