For retail store and supermarket owners, business risks extend beyond inventory and price competition. Every day, hundreds to thousands of people enter and exit your store, bringing with them significant potential legal risks. From customers slipping on wet floors, to items falling and injuring visitors, to even minor incidents like automatic doors jamming and trapping customers’ hands, all of these can have legal and reputational consequences if not handled properly.
This is where it is important public liability insurance This insurance protects your business from lawsuits or third-party claims for damages resulting from bodily injury, property damage, or other losses occurring on your premises or as a result of your business activities.
However, simply having a policy isn’t enough. How you purchase it significantly impacts the outcome when a claim arises. In Indonesia, many businesses purchase policies directly from insurance companies or through agents, but in practice, only insurance brokers like L&G Insurance Broker truly defend your interests and ensure full claims settlement.
So before discussing premiums or limits, understand that public liability insurance is mandatory protection for all modern retail businesses and supermarkets. And the best way to purchase it is through an experienced broker like L&G.
Contact us for a FREE consultation via:
HOTLINE L&G 24 JAM: 08118507773 (PHONE – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
Retail Business Is a Daily Activity Full of Risks
Retail is one of the most interaction-intensive industries. Customers come from diverse backgrounds, at high speed, in a high-speed environment: crowded shopping carts, stacked items, running children, slippery floors, and numerous accident-prone areas.
Some examples of real cases that often occur in retail:
- A customer slipped because the floor had just been mopped and there was no “Caution Wet Floor” sign.
- Display items on the top shelf fell onto visitors.
- A small child was trapped in the automatic door of a supermarket.
- Customers electrocuted while trying out plugs in the electronics demo area.
- A visitor’s car was damaged after being hit by a promotional tent that collapsed due to strong winds.
Incidents like these not only cause physical harm but can also lead to lawsuits and damage to a business’s image. Imagine if an injured customer posts the incident on social media. Within hours, your store’s reputation could be damaged, and other customers could begin to lose trust.
Without public liability insurance, all compensation costs and legal fees must be borne by the individual.
Why Should Retailers Have Public Liability Insurance?
Public liability insurance is a policy that provides financial protection to businesses against third-party claims resulting from injury, death, or property damage that occurs due to business activities or in the business area.
This means that if a customer suffers a loss in your store, the insurance company will:
- Bearing the cost of compensation to the victims.
- Pay legal fees and attorney fees if the case goes to court.
- Covers emergency medical expenses (according to policy terms).
For example, if a customer slips and demands Rp 150 million in compensation, public liability insurance can cover the entire cost. Without this policy, your business could suffer significant losses, even threatening its survival.
Risks that Often Occur in the World of Retail and Supermarkets
Based on L&G Insurance Broker’s experience handling retail sector claims, the following are the most common risks:
- Physical Accidents in Stores
Customers fall because the floor is slippery, the trolley breaks, or the shelf collapses. - Customer Property Damage
Customer belongings are damaged due to employee error, for example liquid spilled on a bag or cell phone. - Incident in Parking Area
Customer cars are scratched or damaged due to parking structures or loading activities. - Fire or Electrical Short Circuit
Causing damage to property of visitors or vendors. - Promotional Events and Activation Booths
A small stage or promotional stand collapsed and injured visitors. - Food Poisoning at Food Court or Mini Cafe
Visitors experienced food poisoning and sued the store for allegedly failing to maintain hygiene standards.
None of these events can be 100% avoided, but they can be managed with the right financial protection.
The Impact of a Store Not Having Public Liability Insurance
Without this protection, a single incident could have a domino effect:
- Huge financial losses.
Have to pay medical costs, compensation, and legal fines. - Reputational damage.
In the age of social media, one negative post can instantly destroy a brand’s image. - Operational disruption.
Investigations and legal proceedings can be time-consuming and disruptive to business activities. - Loss of customers and partners.
Brands that are considered negligent will lose public trust.
Public liability insurance is not only to protect businesses from losses, but also to maintain customer trust and long-term business continuity.
Why Go Through an Insurance Broker, Not an Agent?
Now, this is the most crucial and often misunderstood part. Many business owners purchase insurance directly from insurance companies or through agents because they think it’s “faster.” But when a claim arises, they realize there’s no one to advocate for the insured.
- Brokers Work for You, Agents Work for Insurance
Agents have contracts with insurance companies, while brokers, like L&G Insurance Broker, work on behalf of their clients (the insured). Brokers analyze risks and find the best policies, not just sell products.
- Brokers Help When Claims Occur
This is the most crucial step. When an accident occurs and you file a claim, a broker will assist you from the beginning until the claim is disbursed. This includes gathering documents, communicating with the surveyor, and negotiating with the insurance company. Without a broker, you’d have to do it yourself, and the process could drag on for months.
- Brokers Do Not Add Fees
Many people mistakenly believe that going through a broker is more expensive. In reality, the premium you pay is the same. The difference is that through a broker, you receive professional support and guaranteed claim coverage.
- Brokers Can Negotiate More Optimal Policies
Experienced brokers understand the details of insurance clauses, exclusions, and limits. L&G, for example, can negotiate a public liability policy with broader coverage and competitive premiums that you wouldn’t be able to get through direct channels.
Real Case Example: A Big Store That Lost in Court
A supermarket in Jakarta was once sued by a customer who slipped near the freezer area. The victim suffered serious knee injuries and is seeking Rp 200 million in damages. Unfortunately, the store did not have public liability insurance. As a result, they were forced to cover:
- Victim’s medical expenses
- Legal compensation
- Attorney fees
- Reputation impact (going viral in local media)
The total loss reached more than IDR 350 million.
If they have a public liability policy, the entire cost should be covered by insurance and a broker like L&G will help ensure the claim is approved in full.
Benefits of Having Public Liability Insurance for Retail Businesses
- Total Financial Protection
All legal costs, court costs, and third party compensation are covered. - Maintaining Consumer Trust
Customers will have more trust in a store that cares about safety and professionalism. - Meeting Business Partner Requirements
Many major brands and vendors now require their partners to have public liability insurance. - Avoiding Operational Disruptions
When an incident occurs, you can stay focused on running your business without worrying about legal costs. - Maintaining Brand Reputation
Reputation is the greatest asset in the retail world. This insurance helps you maintain your image as a responsible business.
Why Choose L&G Insurance Broker?
L&G Insurance Broker has over 30 years of experience handling commercial insurance, including public liability for various sectors such as retail, construction, hotels, and public facilities.
We don’t just sell policies, but are your strategic partner in managing risks and ensuring claims run smoothly.
- Assistance from the beginning until the claim is disbursed
- Risk analysis and best policy recommendations for your business
- A team of licensed and experienced professionals in the commercial insurance industry
- Access to various well-known insurance companies in Indonesia and internationally
With L&G, you don’t have to worry about facing a complicated claims process.
We will step in to ensure claims are paid quickly, accurately, and in full.
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In the modern retail world, small mistakes can have huge consequences. One customer slip-up can cost a business hundreds of millions in losses, reputation loss, and even loyal customers.
Don’t wait until it happens. With public liability insurance, you protect not only your customers, but also your finances, reputation and the future of your business.
And remember, never buy a policy directly or through an agent. Because when a claim occurs, only a broker like L&G Insurance Broker will stand by your side, helping from the beginning until the claim money is actually disbursed.
If you are a retail store, minimarket, supermarket, or franchise owner who wants to ensure your business is protected from legal risks, now is the time to act.
Contact us now for a FREE consultation:
📞 Mobile/Whatsapp: 08118507773
📧 Email: halo@lngrisk.co.id
L&G Insurance Broker’s team of experts will help you understand your business’s risk needs, design a suitable policy, and provide the best public liability insurance solution for your store.
