Blast furnace failure is a nightmare for any steel industry owner, where mechanical failure or explosion can halt the entire production chain and cause billions of rupiah in losses within hours. To protect this massive asset, companies require a precise property all-risk insurance structure that complies with OJK occupational rate regulations 202.
This article discusses the crucial role of insurance brokers in navigating the 2020 occupational codes for Iron Mines, Blast Furnaces, and Iron Foundries to ensure claims are paid in full. As experts based in South Tangerang, L&G Insurance Broker is ready to be a strategic partner in managing your heavy industry risks. To ensure the future of your factory’s operations even if disaster strikes, mitigation measures must be implemented with the right professional guidance.
The Vitality of Blast Furnaces in the Steel Industry and the Risks That Lurk
In the primary metal manufacturing ecosystem, the Blast Furnace is the heart of the entire operation. This facility operates non-stop 24 hours a day at temperatures exceeding 1,500 degrees Celsius to extract iron from its ore. However, these extreme temperatures carry significant risks. A failure in the cooling system, a leak in the refractory lining, or an explosion from the contact of molten metal with water can paralyze the entire plant.
For steel companies, furnace damage isn’t just a physical repair, but a business continuity issue. This is where comprehensive property insurance coverage becomes crucial. The problem is, many industrialists don’t understand that insurance for such a demanding facility is not the same as regular building insurance. A thorough understanding of risk classification and proper policy placement are required to ensure that in the event of major damage, insurance companies have no excuse for denying claims.
Why is Property All Risk Insurance the Main Foundation of Factory Protection?
For high-risk industries, the most standard yet crucial type of coverage is property all-risk insurance (PAR). Unlike a Named Perils policy, which only covers the risks listed, PAR covers all sudden physical damage not specifically excluded. This includes fire, explosion, lightning, and natural disasters that could damage your blast furnace structure.
However, the effectiveness of property all-risk insurance depends heavily on the policy’s wording. A specialist insurance broker will ensure that coverage extends beyond building damage to the building and includes vital machinery attached to the structure. Without a broker’s guidance, businesses often find themselves trapped in policies with numerous costly technical exclusions.
Given the technical complexity of Blast Furnace and Iron Foundry facilities, your asset protection should be managed by those who understand the intricacies of heavy industry. If you want to ensure that every inch of your production facility is protected by the most favorable insurance provisions for the insured, Contact L&G Insurance Broker now at 08118507773 for consultation with our experts.
Technical Analysis of OJK Occupational Classification 202 and 2020 Tariff Codes
In Indonesia, property insurance premium rates are not determined haphazardly. The Financial Services Authority (OJK) has established tariff regulations through an occupational coding system. The most specific classification for the iron and steel industry is OJK Occupation 202.
Getting to Know the 2020 Occupation Code
Going deeper, there are derivatives of number 2020 which include:
- Iron Mines: Iron ore mining operations.
- Blast Furnaces: Operation of blast furnaces for smelting.
- Iron Foundries: Iron casting facilities.
- Primary Metal Product: Primary base metal production facilities.
It’s important for industry players to understand that the 2020 OJK occupation code 202 is the occupation code officially determined by the OJK for determining property all-risk insurance premium rates. This means that the premium you pay has a legal floor and ceiling rate. An insurance broker will help you verify that your factory is assigned the correct occupation code, as incorrect code placement can invalidate your claim due to misdescription of risk.
The Role of Insurance Brokers in Navigating OJK Premium Rates
Many people ask, “If rates are already determined by the Financial Services Authority (OJK), then what’s the point of using an insurance broker?” The answer lies in negotiating risk factors. Although the OJK sets the rate range for the 2020 code, insurance companies have the discretion to assess the quality of risk management at the manufacturing site.
Brokers will help you identify weaknesses in fire protection systems or machine maintenance procedures. By improving the risk quality (for example, installing a more sophisticated automatic temperature sensor system on a blast furnace), brokers can negotiate with insurance companies to provide premium rates below the threshold set by the Financial Services Authority (OJK).
Understanding the detailed explanations of premium rates set by the Financial Services Authority (OJK) under occupation code 202 requires sharp analytical skills and years of experience in the insurance industry. Always partner with an insurance broker like L&G, who thoroughly understands this, so you can achieve cost efficiencies without compromising on the quality of your protection.
Strategies for Dealing with Major Damage: More Than Just Physical Repairs
When a blast furnace experiences major damage, the financial challenges that arise go beyond the cost of repairing materials. A more frightening issue is the interruption of cash flow. The steel industry has extremely high fixed costs, including the salaries of thousands of employees and bank installments for machinery investments.
Therefore, when preparing property all-risk insurance, a competent broker will always recommend adding Business Interruption (BI) coverage. This coverage will compensate for lost profits incurred by the company during factory downtime due to damage covered by the insurance policy. Without BI coverage, even a large steel company could collapse financially within months of an incident at its main furnace.
Why is L&G Insurance Broker in South Tangerang Your Best Partner?
Choosing an insurance partner is a strategic decision that will determine your business’s resilience during a crisis. L&G Insurance Broker, an insurance consultant based in South Tangerang, has a deep understanding of the dynamics of the manufacturing industry in Indonesia.
The advantages of using L&G Insurance Broker services include:
- Accurate Occupation Analysis: We ensure that each of your assets is correctly classified in OJK 202 occupation to avoid any problems with claims.
- Comprehensive Policy Audit: We review your current policy to find any gaps or clauses that may be detrimental to your position as the insured.
- Claims Advocacy: When a major incident occurs, we stand by your side to face the Loss Adjuster and ensure that the loss calculation is done fairly.
- Reinsurance Market Access: Steel industry risks require significant capacity. We have a network of national and international reinsurance companies.
The iron and steel industry is too risky to manage without professionally designed insurance coverage. To help you focus on increasing production capacity and expanding your market, let our experts handle the risk management of your physical assets.
Mitigation Steps: Protecting Assets from the Planning Stage
Many industrial owners only seek insurance after their machinery is installed or when a claim is filed. However, the most effective insurance strategy begins at the initial risk audit stage. By understanding the characteristics of industrial property insurance, companies can design more insurance-friendly factory layouts and security systems, thereby reducing premiums from day one.
L&G Insurance Broker helps you conduct a risk survey to map potential hazards in blast furnaces, iron foundries, and finished product warehousing areas. We ensure that every component, from iron mine operations to primary metal processing, receives equal coverage under your PAR policy.
Conclusion
The continued operation of a steel mill depends heavily on the operational stability of the Blast Furnace. A major failure to this unit without proper insurance coverage is a surefire way to operational bankruptcy. By combining robust property all-risk insurance coverage, a thorough understanding of OJK Occupational Code 202, and the assistance of an experienced insurance broker, you’ve built a strong foundation of financial protection.
Remember that insurance premiums are not just an expense, but an investment in future security. Amidst increasingly fierce competition in the steel industry, the companies most resilient to crises are those with the most robust risk management.
Don’t let your trillion-rupiah investment hang in the balance. Let’s discuss the most efficient protection strategies for your steel manufacturing. Contact L&G Insurance Broker now at 08118507773 for consultation with our experts and ensure your iron factory has the best insurance protection that complies with OJK regulatory standards.
—
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
—
