Liga Asuransi – A fire that engulfed a shipping warehouse in the Cakung area of East Jakarta in October 2025 was one of the events that reiterated the importance of adequate insurance protection in the business world. The fire, suspected to have been caused by an electrical short circuit, engulfed much of the storage area, destroying customer inventory, operational equipment, and even delivery vehicles. Material losses were estimated at half a billion rupiah, not including potential lost revenue due to the disruption of logistics operations.
However, what is interesting is that quite a few similar business actors are starting to ask:
“What if a fire like this happened in my warehouse? Would insurance really pay?”
This question is not without merit. In practice, many warehouse owners or tenants still don’t understand the details and limitations of their Property All Risks (PAR) policies—the type of insurance that should protect them from the risks of fire, explosion, and disaster damage. As a result, when disaster strikes, they find themselves trapped in a slow claims process, with documents rejected, or even losing their right to compensation entirely.
The Cakung case serves as an important reminder for the logistics and warehousing industry in Indonesia: having a policy doesn’t end your responsibility to protect your business assets. In fact, understanding claims procedures and common mistakes is a determining factor in whether you receive full compensation or not.
This article will delve deeper into the important lessons learned from the Cakung Expedition Warehouse fire, while also highlighting common Property All Risks claim mistakes that business owners often overlook, so you can be better prepared if a similar risk befalls your business.
Chronology and Economic Impact of the Cakung Case in 2025
At nightWednesday, October 15, 2025, around8:30 PM WIB, local residentsCakung Cilincing Timur Road, Pulogebang, East JakartaThey were startled by thick smoke billowing from one of the shipping warehouses. The fire quickly spread, engulfing stacks of cardboard boxes and flammable customer shipments.
Firefighters received reports at around 8:45 PM WIB, and immediately deployed 12 fire trucks with 60 personnel to the location. The extinguishing process was quite difficult because the fire had spread to the center of the warehouse, which was full of flammable materials. After almost two hours of struggle, the fire was finally extinguished at around 10:40 PM WIB.
Lucky, no casualties, However The loss is estimated to reach around Rp. 500 million., including damage to warehouse buildings, logistics equipment, and customer property. Based on the results of the preliminary investigation,the cause of the fire was an electrical short circuit in the lighting area inside the warehouse.
For shipping companies, this incident is a heavy blow towards the end of the year, a period where shipping volumes usually increase rapidly due to the momentum of year promos, Black Friday, and Christmas-New Year preparationsMany customers were forced to delay or cancel shipments, while warehouse owners faced time-consuming physical and administrative recovery processes.
More profoundly, this incident raises broader economic impact:
- Business partners lose timely supply of goods,
- The customer demanded compensation for the damaged package,
- Operational costs soared due to having to find a replacement location,
- And most companies face uncertainty regarding whether their insurance will actually cover the loss.
From this it is clear that fire is not only a physical disaster, but alsofinancial and reputational disasterThis is especially true for shipping and logistics companies that rely on speed and customer trust.
Smart Steps to Manage All Risks Property Claims to Avoid Rejection
After a disaster like a fire, many warehouse owners are confused: where to start, who to contact, and how to ensure their claim is accepted by the insurance company. However, the initial steps taken after the incident can be crucial in whether a claim will be approved or rejected.
Here is a step by step guide to the claims process.Property All Risks (PAR)You went smoothly and the end result was as expected.
1. Report the Incident Immediately
Once an incident occurs — whether a fire, explosion, or other damage —report immediately to your insurance company or broker. Ideally in timemaximum 3×24 hours.
Use an official email or written letter to have proof of reporting that can be shown during an investigation.
If you use the services insurance broker, just contact them — the broker will forward the report to the insurer and help prepare all the necessary documents.
2. Secure the Location and Prevent Additional Damage
Don’t let the situation get worse.
Once the fire is extinguished or the incident is under control,secure the area and prevent excessive cleaning efforts before the surveyor arrives. Insurance may reject a claim of evidence of damage lost or changed without permission.
- Prepare Complete Claim Documents
Administrative completeness is key. Documents typically required include:
- Police report or fire report from the fire department,
- Photos of the conditions before and after the incident,
- List of damage and estimated losses,
- Proof of ownership or purchase of the damaged item,
- Last insurance policy and endorsement,
- Chronology of events letter from the company.
Minor mistakes like policy number discrepancy, missing documents, or incomplete signatures can slow down or even fail your claim.
4. Coordination with Loss Adjuster and Surveyor
Typically, the insurance company will appoint a loss adjuster to assess the reasonable extent of the loss. This is where the role of insurance brokers becomes important— the broker will accompany you throughout the investigation process to ensure that all findings remain fair and in accordance with the contents of the policy.
5. Keep Communication Records
Keep all evidence of communication: emails, reports, and meeting notes with the insurance company. If differences in interpretation or disputes arise over the claim amount, these documents can be used as evidence.The main weapon to uphold your rights.
Handling a claim can be a long and tiring process. But with the right guidance and professional support, you can…turning disaster into rapid and measurable recovery.
Brokers like L&G Insurance Broker are experienced in handling various major claims cases, including warehouse fires, factory damage, and operational disruptions due to disasters. With more than 30 years of experience in the Indonesian insurance industry, L&G can help ensure your claim is processed quickly, accurately and fairly.
The Role of Insurance and Insurance Brokers in Protecting Business Property Assets
The Cakung fire highlights one important fact: simply having an insurance policy isn’t enough. Many companies have signed insurance contracts for years, but when disaster strikes,claims stalled due to misinterpretation, lack of documentation, or miscommunication between the insured and the insurer.
This is the point where the role insurance companies and insurance brokers be very different but complement each other.
The Role of Insurance Companies
Insurance companies are financially responsible for the risks covered by the policy. However, their responsibility is only active after the risk is guaranteed to occur and all policy requirements are met.
Their main functions include:
- Assess and accept risks based on the proposal submitted,
- Determine premiums according to risk level,
- Pay claims according to policy provisions,
- Conduct surveys and investigations to ensure the validity of claims.
However, because insurance companies have a position as insurer, then they will always be careful — even tend to look for administrative loopholes if there is something that is not right in the claims process.
The Role of Insurance Brokers
Here it is, insurance brokers play an important role.
Unlike agents who represent insurance companies, brokers act as a representative of the insured (client).
They serve to ensure that your rights as a policy owner are protected.fully fulfilled.
The role of a broker includes:
- Analyze business risks and recommend the most appropriate type of policy,
- Compare multiple offers from different insurance companies,
- Assist in drafting policy wording so that there are no loopholes that are detrimental to the insured,
- Accompanying the claims process — from reporting, document preparation, to negotiating the compensation value,
- Become an independent advisor which is in the interests of customers.
In other words, Brokers are not just insurance sellers, but strategic partners in risk management.
They understand how the world of underwriting and claims works, and are able to bridge communication between customers and insurance companies in a professional manner.
Real Example in the Cakung Case
If the owner of the expedition warehouse in Cakung has an active insurance broker, it is likely that:
- Claim reporting is done in a timely manner,
- Documents and proof of damage are prepared properly,
- Negotiations on compensation proceed more quickly,
- And the company does not lose operational momentum due to delays in claims payments.
Conclusion and Recommendations
Case expedition warehouse fire in the Cakung area in October 2025 serve as an important reminder to the business world that having a Property All Risks (PAR) policy alone does not guarantee comprehensive protection if not accompanied by proper claims management. Many companies experience major losses not because they are not insured, but because incorrect claims procedures, lack of documentation, and poor communication with the insurance company.
In this incident, several warehouse tenants and owners of goods experienced difficulties in the claims process, ranging from late reporting to differing interpretations of policy clauses. As a result, claim payments are delayed or even fall short of expectations. This demonstrates the importance of support from professional insurance brokers, which can ensure that the insured’s rights are carried out in accordance with the policy provisions.
Insurance brokers act as independent intermediaries and advisors between clients and insurance companies. They help from the very beginning—fromrisk analysis, insurance value adjustments, and claim assistanceIn a major case like the Cakung fire, the presence of a broker can be the difference between a claim that is “stalled” and one that is “paid in full.”
📞 Contact L&G Insurance Broker at 0811-8507-773 for a free consultation and find insurance solutions that protect your assets, reputation and business future.
