Indonesia is actively developing renewable energy projects, including wind power plants (PLTB) in various regions. These projects involve shipping massive components, such as wind turbine blades that can be up to 50 meters long and are worth billions of rupiah. However, behind the grandeur of these projects, significant risks lurk at every stage of the logistics, especially when heavy equipment and critical components are transported by land.
Recently, a truck transporting wind turbine blades overturned on its way to a project site in South Sulawesi. The accident caused one of the blades to break and severely damage it. The estimated losses are between IDR 12 billion and IDR 15 billion, excluding additional costs such as evacuation, project delays, and contractual fines from the project owner. Incidents like this are not uncommon. Many shipments of heavy equipment, generators, and even other industrial components experience similar damage due to technical factors, weather, or human error in the field. Without proper cargo insurance coverage, the entire loss could be borne by the shipping company and the project contractor.
The overturned incident of a truck transporting wind turbine blades demonstrates that shipping heavy equipment or high-value components carries significant financial risks. Without proper protection, losses of tens of billions of rupiah could destroy a company’s cash flow and reputation. Therefore, every player in the construction, energy, or heavy equipment industries needs to pay attention to aspects of transportation risk management. Because every high-value shipment must be guaranteed safe, it is highly recommended to seek expert protection. Before risk halts a project,ContactL&G Insurance Brokernow in08118507773for a free consultation and recommendations for the best protection for your business.
Case of Overturn of Truck Transporting Wind Turbine Blades
The accident occurred on one of the routes of a wind power plant project in South Sulawesi. A trailer truck, over 20 meters long, was carrying turbine blades to be delivered to an installation site in a hilly area. While negotiating a sharp curve on an incline, the truck lost its balance and overturned.
The 50-meter-long turbine blade broke in the middle due to the force of the impact with the road surface. Furthermore, part of the truck’s body was severely damaged. There were no casualties, but material losses are estimated at over Rp 15 billion. The initial cause of the accident is suspected to be a combination of overloading, narrow road conditions, and a suboptimal lashing system. The evacuation process took two days, and the project was delayed for over three weeks.
This incident demonstrates that the risks of transporting large components like turbine blades involve not only damage to the goods but also project delays, contractual losses, and potential lawsuits from the project owner. This is why Cargo Insurance is so vital to the logistics of large industrial projects.
Risks of Shipping High-Value Components and Heavy Equipment
Shipping heavy equipment such as turbines, cranes, generators, and towers is a high-risk activity in the industrial logistics sector. Some common risks that frequently lead to significant losses include:
- Truck accidents involve rolling over, skidding, or impact on narrow roads or difficult terrain.
- Damage while loadingorunloading — technical errors when lifting heavy components (for example, when turbine blades are moved onto a trailer).
- Extreme weather such as heavy rain or strong winds can cause load imbalance or landslides.
- Human error, lack of safety SOPs during the trip or driver fatigue.
- Unsupportive road infrastructure — narrow, uphill, or potholed project paths.
Any incident can result in damage to property worth billions of rupiah. Even a single wind turbine blade can be worth as much as a piece of mid-range heavy equipment. This is why many contractors now recognize that the risks of shipping heavy equipment must be managed through specially designed Cargo Insurance from experienced insurance brokers like L&G Insurance Broker.
ContactL&G Insurance Brokernow in08118507773 Get the best risk analysis and protection recommendations before risks hit your business.
Financial Impact Without Cargo Insurance Protection
Logistics accidents not only cause physical damage but also multiple financial impacts. Here are some common forms of loss that occur in cases like those involving trucks transporting turbine blades:
- Direct losses: Physical damage to turbine blades worth Rp. 15 billion or more.
- Indirect losses: Road repair costs, equipment evacuation (salvage costs), and replacement of goods.
- Losses due to project delays: Contractual fines (Liquidated Damages) from the project owner for not being on schedule (because deliveries have to be repeated).
- Cost of Re-engineering: The cost of technical adjustments and logistical rescheduling due to missing key components.
- Reputational loss: Loss of trust from investors or project principals, which can affect future project funding.
Without cargo insurance, all these losses would be borne by the contractor or transportation vendor. In other words, a single incident could wipe out a project’s entire profit margin, worth tens of billions of dollars. Therefore, appropriate cargo insurance coverage is a crucial component of a project risk management strategy.
What Is Cargo Insurance and Why Is It Important for Heavy Equipment Shipping?
Cargo insurance is a form of protection against the risk of damage, loss, or delay of goods during shipping—whether by land, sea, or air. This type of protection covers a variety of risks, including:
- Transport vehicle accidents (rollover, skidding, collision).
- Fire and Explosion during transit.
- Collision and rollover (land risk).
- Extreme weather and force majeure such as landslides or floods that cause damage to cargo.
- Damage during loading and unloading of heavy equipment.
When shipping heavy equipment and industrial components, cargo insurance not only protects goods from physical damage but also provides assurance to both the sender and recipient against significant financial losses that could disrupt the continuity of a wind turbine (PLTB) project. Cargo insurance policies must be specifically tailored to the characteristics of the goods (ODC/ODP) and the shipping route. This is where the role of an insurance broker becomes crucial.
ContactL&G Insurance Brokernow in08118507773 for a free consultation before the risk, and ensure that every project worth billions of yours has maximum protection from start to finish of the journey.
The Role of Insurance Brokers in Managing Heavy Equipment Shipping Risks
As an insurance broker located in South Tangerang, L&G Insurance Broker is experienced in helping contractors and the heavy equipment industry design tailored coverage solutions. Brokers understand that wind turbine blades require different policy clauses than coal shipments or excavators. A broker’s role extends beyond simply selling policies; they also include:
- Delivery route risk analysis — evaluates road conditions, weather, and transportation methods (multimodal).
- Designing custom clauses — tailoring the guarantee to the character of the goods (e.g., strict Lashing and Securing clauses).
- Negotiate the best premiums with trusted insurance companies (optimizing coverage at efficient costs).
- Claims process assistance — ensuring customers receive full compensation without administrative obstacles (very important for losses of tens of billions).
- e. Ensuring General Average: The broker ensures that your cargo is protected from the risk of common casualties (General Average).
With a broker, every risk detail can be analyzed before the policy is issued. This ensures there are no loopholes that could lead to a claim being denied in the event of a truck rollover.
Risk Mitigation Strategies in Energy Project Component Delivery
In addition to insurance protection, it is important for companies to implement risk prevention strategies during the shipping process of heavy equipment and wind power plant components:
- Conduct a logistics route survey (Route Survey) before the trip starts to identify accident-prone points.
- Using vehicles and equipment according to the product specifications (lowbed trailer specifically for wind turbine blades).
- Ensuring the lashing system complies with international standards (a critical factor that often causes the greatest losses).
- Monitor weather conditions and travel schedules in real time.
- Involve insurance brokers from the start of project planning (not when the goods have been transported).
The combination of technical risk mitigation and insurance protection will create a solid security system for all parties involved in the project.
Insurance Coverage Recommendations for Energy and Heavy Equipment Projects
To ensure truly comprehensive protection and optimal financial risk transfer, L&G Insurance Broker recommends the following insurance products:
- Cargo Insurance (Goods Transport Insurance): Protects components and heavy equipment during shipping (mandatory for the risk of truck overturning).
- Contractor’s Plant and Machinery (CPM): Protects heavy equipment (cranes, loaders) while operating at the project site.
- Property All Risk (PAR): Protects goods and equipment in storage locations (warehouses or site storage*) from fire and natural disasters.
- Third Party Liability (TPL): Protects third parties from risks resulting from transportation accidents (truck overturning on a public road).
- Erection All Risks (EAR): Critical for wind power projects; protects the turbine installation from damage during the erection and commissioning phases.
All these products can be combined into one efficient project protection scheme tailored to the needs of the construction, heavy equipment, and energy industries.
In-depth Analysis: The Relationship Between Transportation and Contract Risks
In large-scale energy projects, delays in the delivery of wind turbine blades can trigger costly contractual penalties (liquidated damages). These penalties can be multiple times the cost of repairing the equipment itself. If the damaged turbine blade is a critical path item, the financial impact can result in total project downtime.
Cargo insurance can be extended with a Delay in Start-Up (DSU) clause. The insurance broker’s role is to ensure this DSU clause is included in the policy when critical components are delivered. This way, financial losses caused by project delays due to truck overturns or damage can be covered by insurance, preserving the contractor’s cash flow and maintaining business relationships with the project owner.
Conclusion
The accident involving a truck transporting wind turbine blades, which caused billions of rupiah in damage, is a stark reminder for those in the energy and heavy equipment industries. Every process of shipping large components carries high risks that can damage a project financially and reputationally.
Comprehensive cargo insurance coverage isn’t just a formality, but an asset protection investment that ensures business continuity. Ensure your policy covers comprehensive land risks and is backed by an expert insurance broker.
Source:
- https://otogaz.indozone.id/market/931057858/ngeri-truk-pengangkut-turbin-angin-berukuran-besar-ini-ditabrak-kereta-api
- https://ligaasuransi.com/kargo-bernilai-rp10-miliar-hilang-di-laut-apakah-bisnis-anda-siap/
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