Heavy Equipment Overturns on Road to Project, Losses Reach Rp8.5 Billion!

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Heavy equipment delivery accidents, such as truck overturns, not only cause significant material losses but can also disrupt entire construction projects. In a recent case, a truck transporting an excavator worth billions of rupiah overturned on its way to a project in Kalimantan. The estimated loss reached IDR 8.5 billion, including repair costs, project delays, and potential contractual penalties. As a heavy equipment owner or lessee, you need to understand that every trip to a project site carries significant risks. Without proper protection, a single incident can drain capital and damage a business’s reputation.

Before the risk comes, protect your assets with the right heavy equipment shipping insurance.Contact L&G Insurance Broker now at 08118507773 for a free consultation and recommendations for the best protection for your business.

Accident Chronology: Excavator Truck Overturns on Construction Road

The incident occurred on a mountainous road leading to a dam construction project in East Kalimantan. A low bed trailer truck carrying a 30-ton excavator overturned while climbing a tight curve. According to field reports, the slippery road surface due to rain caused the vehicle to lose control.

The truck rolled onto the shoulder of the road, severely damaging the excavator. Furthermore, the road leading to the project was closed for two days, temporarily halting construction activities. Estimated losses reached Rp 8.5 billion, including:

Damage to heavy equipment units (estimated loss: IDR 5.8 billion)
Evacuation and repair costs for transport trucks (estimated: Rp. 700 million)
Project delays and contractual penalties (estimated: Rp2 billion)

This incident serves as an important reminder for those in the construction and logistics industries that shipping heavy equipment is not just about moving large items, but also carries a huge financial responsibility.

Often Overlooked Risks of Heavy Equipment Shipping

Many companies renting or owning heavy equipment still consider the shipping process safe as long as they use a trusted logistics provider. However, in practice, risks can arise from various directions, especially when heavy equipment shipments involve difficult terrain or inter-island shipping. The following are common risks encountered in the process of delivering heavy equipment to projects:

The truck overturned or lost balance on a steep or slippery road.
Damage due to falling or slipping during the loading/unloading process of heavy equipment.
Damage due to weak bonds, causing the tool to shift during travel.
Sunk or damaged due to ferry ship sinking during inter-island shipping.
Damage due to excessive shocks when passing through bad road conditions.

These risks can result in losses reaching billions of rupiah, especially for heavy equipment such as excavators, cranes, bulldozers, wheel loaders, and project generators. Each unit can be worth between IDR 2 and 10 billion, depending on the brand, capacity, and year of manufacture. If damage occurs during transit, the equipment owner not only bears the cost of repairs but also the loss of potential revenue from project downtime.

Heavy Equipment Shipping Insurance Needs

In reality, many heavy equipment owners do not yet understand that heavy equipment shipping insurance (Cargo Insurance) can cover losses like this, as long as the policy is properly drafted, covering the risks of land travel comprehensively.

Before the risk comes without warning, make sure your heavy equipment is protected by an appropriate policy.Contact L&G Insurance Broker now on 08118507773 to get the best freight insurance recommendations according to your industry needs.

Similar Case Study: 50-Ton Crane Truck Overturns on Toll Road

Another high-profile incident in 2024 involved a 50-ton crane truck that overturned on the Trans-Java Toll Road. The accident occurred as the driver attempted to avoid a suddenly stopped vehicle. The heavy load on the rear caused the trailer to lose its balance.

The incident severely damaged a crane worth over Rp10 billion, and a section of the toll road was closed for six hours for evacuation. The losses were felt not only by the equipment owner but also by the logistics company and project contractors waiting for the equipment at the bridge construction site.

According to media reports (CNBC Indonesia, May 2024), heavy equipment shipments like this are often not fully covered, especially when handled by subcontractors. However, with Freight Insurance, repair costs and delay losses can be claimed according to the insured value.

The Financial Impact of Not Having Insurance: Cascading Losses and Project Delays

Accidents during heavy equipment delivery have a financial domino effect. The impact extends beyond equipment damage to various operational aspects. The potential financial losses can be outlined as follows:

Heavy Equipment Repair and Replacement Costs: Major damage such as a broken boom or a destroyed hydraulic system can cost 60–80% of the new price of the equipment.
Evacuation and Retransportation Costs: The process of removing overturned heavy equipment requires specialized equipment such as large cranes and additional lowbeds — which can cost hundreds of millions of rupiah and is often not covered by standard insurance.
Project Delays and Contract Penalties: Construction and mining projects operate on tight schedules. A delay of just 1–2 weeks can result in fines of up to billions of rupiah, directly impacting the contractor’s cash flow.
Loss of Client Trust: Large clients such as mining companies or EPC contractors will be hesitant to entrust their next project to a vendor who fails to manage risk.

With Cargo Insurance, all of the above risks can be financially transferred. A properly drafted policy covers physical damage to goods, salvage costs, and cleanup costs resulting from accidents.

How Cargo Insurance Protects Heavy Equipment Shipments

Cargo Insurance provides comprehensive protection against risks that occur during the delivery of heavy equipment by land, sea, or air.

Main coverage includes:

Total Loss (Total Loss) due to the vehicle rolling over or burning.
Partial Loss (Partial Damage) due to impact, vibration, or extreme weather.
Additional risks such as theft, fire, and natural disasters (according to policy extension).
In the case of a truck rollover, a good policy may also cover:
Cost of moving heavy equipment from the accident site.
Reshipment costs for replacement equipment.
Losses due to project delays (delay in start up) if regulated in additional clauses and the main risk is triggered.

Such policies can be tailored through an insurance broker, to ensure coverage matches the value of the goods and the characteristics of the project.

To assess your needs and get the most efficient offer, Contact L&G Insurance Broker now in 08118507773 for free consultation before risk.

Case Study: Bulldozer Transportation Accident in Sumatra

In March 2024, a truck carrying a bulldozer overturned on the Trans-Sumatra highway. The unit, valued at Rp 6.8 billion, sustained severe damage after being thrown to the side of the road. Fortunately, the shipment was insured with Cargo Insurance, which covers full land risks.

The claims process is fast because the insurance broker helps complete all documents such as:

Waybill and Bill of Lading
Detailed police report
Photos of the damage at the scene
Estimated repair costs from authorized workshops.

Within 45 days, the claim, valued at Rp5.9 billion, was paid in full. This demonstrates the crucial role of insurance brokers in expediting the claims process and ensuring clients don’t incur losses themselves.

The Strategic Role of Insurance Brokers in Heavy Equipment Protection

Many companies believe that purchasing insurance directly from an insurance company is sufficient. In reality, many claims go unpaid because the policy isn’t tailored to the type of goods or mode of transport. As an independent insurance broker, L&G Insurance Broker plays a key role:

Comprehensive risk analysis based on heavy equipment type, shipping route, and value of goods.
Negotiate with multiple insurance companies to get the best premiums and coverage.
Assistance during the claims process, including negotiating compensation amounts and claim technicalities.
Ongoing risk consulting, so that each new shipment is optimally protected.

L&G has handled various heavy equipment shipping cases in the construction, mining, energy, and logistics sectors, with claim values reaching billions of rupiah.

Risk Protection Recommendations for the Heavy Equipment Industry

To prevent risks such as truck overturning from causing major impacts, here is a combination of protection recommended by insurance brokers for heavy equipment assets:

Cargo Insurance: Protects equipment during shipping (land/sea/air).
Contractors’ Plant and Machinery (CPM) / Heavy Equipment Insurance: Protects equipment during project operations (from damage, fire, or accidents).
Property All Risk (PAR): Protects equipment stored in project areas or warehouses from the risk of fire and natural disasters.
Third Party Liability (TPL): Meng-coverlosses to third parties due to heavy equipment accidents (important when shipping on highways).

With this combination of protection, your business is protected from end to end, from the shipping process to field use.

Get complete guidance and analysis of your project’s specific needs by contacting L&G Insurance Broker at 08118507773 for free consultation before risk.

Conclusion

Heavy equipment transport accidents are not uncommon in Indonesia. With varying road conditions and extreme terrain, every journey for heavy equipment worth billions of rupiah is fraught with risk. Without proper transport insurance coverage, the loss of a single accident can wipe out profits on a major project and even lead to bankruptcy for small contractors.

Protect your business from unnecessary losses. Ensure every piece of heavy equipment delivered to the project site is insured with Cargo Insurance, prepared by a professional broker and covering comprehensive land risks. L&G Insurance Broker guarantees optimal protection, robust claims negotiation, and a fast claims process.

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