{"id":8119,"date":"2025-10-01T13:45:00","date_gmt":"2025-10-01T06:45:00","guid":{"rendered":"https:\/\/ligaasuransi.com\/?p=8119"},"modified":"2025-10-01T13:45:00","modified_gmt":"2025-10-01T06:45:00","slug":"berapa-biaya-premi-asuransi-proyek-energi-surya-di-indonesia","status":"publish","type":"post","link":"http:\/\/ligaasuransi.com\/en\/berapa-biaya-premi-asuransi-proyek-energi-surya-di-indonesia\/","title":{"rendered":"How Much Does Solar Energy Project Insurance Premium Cost in Indonesia?"},"content":{"rendered":"

Solar energy projects<\/span><\/a> (rooftop, ground-mounted, or floating) have a unique risk profile: exposure to extreme weather, panel theft, damage during transit and installation, and operational disruptions that reduce electricity production. Insurance premium costs are heavily influenced by project stage, scale (MWp), technology (string vs. central inverter, fixed-tilt vs. tracker), location (prone to flooding\/wind\/corrosion), and contractor and supplier quality. This article maps insurance types and estimated premium ranges at each phase, plus the role of brokers like L&G in negotiating the best rates and assisting with claims.<\/span><\/p>\n

Note: The premium ranges below are indicative for the Indonesian market and are highly dependent on the underwriter’s risk assessment, claims track record, design quality, equipment specifications, and mitigation strategies.<\/span><\/p>\n

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Contact L&G Insurance Broker now at <\/b>08118507773<\/b><\/a> for a free consultation before the risks haunt your business.<\/b><\/p><\/blockquote>\n

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Design Phase (Engineering)<\/b><\/h3>\n

Main Risks<\/span><\/p>\n

    \n
  1. Design\/engineering errors that cause underperformance, hot spots on modules, string mismatch, or even structural failure (e.g. mounting\/rail, ballast, pile foundation).<\/span><\/li>\n
  2. Non-compliance with grid standards, lightning protection, and protection coordination (AC\/DC).<\/span><\/li>\n
  3. Weak technical documentation triggers variations in work and additional costs (variation orders).<\/span><\/li>\n<\/ol>\n

    Relevant Insurance Types<\/b><\/p>\n

      \n
    1. Professional Indemnity (PI) \/ Errors & Omissions (E&O)<\/span><\/li>\n<\/ol>\n

      Protecting consultants\/engineers from third party claims due to errors\/designs that result in financial losses.<\/span><\/p>\n

        \n
      1. Cyber \u200b\u200bLiability (optional, but increasingly relevant)<\/span><\/li>\n<\/ol>\n

        For utility-scale projects with SCADA\/monitoring and network integration, a cyber incident could trigger a shutdown\/output reduction.<\/span><\/p>\n

        How Much Does the Premium Cost?<\/b><\/h4>\n

        PI\/E&O: generally 0.20% \u2013 0.60% of the annual limit (e.g., IDR 50 billion limit for projects larger than 20 MWp), depending on risk profile, team experience, and claims record.<\/span><\/p>\n

        Cyber: highly variable, often income\/limit based, indicative 0.10% \u2013 0.35% of policy limit.<\/span><\/p>\n

        How to Reduce Premiums<\/b><\/h4>\n

        Certification & design methodologies (IEC\/UL\/ASTM), design peer review, conservative structural calculations, and rigorous change management.<\/span><\/p>\n

        Brokers like L&G prepare compelling engineering submissions (engineer curriculum, flow diagrams, protection specifications, concise FMEA) to lower underwriters’ risk perception.<\/span><\/p>\n

        Procurement Stage<\/b><\/h3>\n

        Main Risks<\/b><\/h4>\n
          \n
        1. Delay in supply of module\/inverter\/transformer \/ SCADA.<\/span><\/li>\n
        2. Damage during transit (sea, land, air): module breakage\/cracking, humidity, salt corrosion (for nearshore projects).<\/span><\/li>\n
        3. Supplier fraud (rare, but should be anticipated with due diligence).<\/span><\/li>\n<\/ol>\n

          Relevant Insurance Types<\/b><\/h4>\n
            \n
          1. Marine Cargo (termasuk warehouse-to-warehouse)<\/span><\/li>\n<\/ol>\n

            Protecting equipment from the time it leaves the factory to the project site.<\/span><\/p>\n

            Warranty options: ICC (A) (widest), ICC (B), ICC (C). For high-value modules\/inverters, ICC (A) is most recommended.<\/span><\/p>\n

              \n
            1. Transit\/Project Cargo Inland<\/span><\/li>\n<\/ol>\n

              For domestic movement from port to site (truck\/train\/barge).<\/span><\/p>\n

              How Much Does the Premium Cost?<\/b><\/h4>\n
                \n
              1. Marine Cargo \u2013 ICC (A): indication of 0.12% \u2013 0.25% of the value of the goods (CIF\/CIP).<\/span><\/li>\n
              2. Inland Transit: 0.05% \u2013 0.15% depending on route\/terrain (mountains, flooded areas), security, and packaging.<\/span><\/li>\n<\/ol>\n

                How to Reduce Premiums<\/b><\/h4>\n

                Packaging & labeling according to standards, route survey, vendor with packed QA, shock & tilt indicator, and clear Incoterms contract.<\/span><\/p>\n

                L&G submitted a risk improvement plan (unloading protocols, pre-loading photos, pre-shipment inspections, nighttime transport SOPs, escorts) so that rates could be more competitive.<\/span><\/p>\n

                Construction & Installation Phase (Erection\/Testing & Commissioning)<\/b><\/h3>\n

                (This stage often determines the total project premium amount)<\/span><\/p>\n

                Main Risks<\/b><\/h4>\n
                  \n
                1. Damage during installation (dropping, cracked module, short DC).<\/span><\/li>\n
                2. Extreme weather (strong winds, heavy rain, floods, lightning) during construction.<\/span><\/li>\n
                3. Work accidents (falling from a height, injuries during welding).<\/span><\/li>\n
                4. Testing & energization (commissioning) triggers inverter\/transformer damage.<\/span><\/li>\n
                5. Third party interference (theft, vandalism).<\/span><\/li>\n<\/ol>\n

                  Relevant Insurance Types<\/b><\/h4>\n
                    \n
                  • EAR (Erection All Risks) \/ CAR (Construction All Risks)<\/b><\/li>\n<\/ul>\n

                    Covers unforeseen physical damage to the work during construction and installation, including testing\/commissioning as per the clause.<\/span><\/p>\n

                      \n
                    • Third Party Liability (TPL)<\/b><\/li>\n<\/ul>\n

                      Third party losses (injuries\/objects) during work in progress.<\/span><\/p>\n

                      Delay in Start-Up (DSU) \/ Advance Loss of Profit (ALoP) \u2013 optional but important<\/span><\/p>\n

                      Compensate for financial losses (lost revenue) due to COD delays due to damage guaranteed by EAR\/CAR.<\/span><\/p>\n

                        \n
                      • Workmen\u2019s Compensation \/ Personal Accident (project workers).<\/b><\/li>\n<\/ul>\n

                        How Much Does the Premium Cost?<\/b><\/h4>\n
                          \n
                        1. EAR\/CAR: indication of 0.12% \u2013 0.35% of Total Project Value (material + work), adjusted for location & duration.<\/span><\/li>\n
                        2. TPL: often flat based on limits (e.g. Rp25\u2013100 billion); indicative of 0.05% \u2013 0.15% of the project\u2019s annual limit.<\/span><\/li>\n
                        3. DSU\/ALoP: rate on revenue exposed, indicative of 0.20% \u2013 0.60% of the potential loss value during the indemnity period (e.g. 6\u201312 months).<\/span><\/li>\n
                        4. PA\/JK: refers to wages\/labor, indicated Rp x per worker per year\u2014varies according to policy.<\/span><\/li>\n<\/ol>\n

                          How to Reduce Premiums<\/b><\/h4>\n

                          Method installation neat (torque wrench log, string layout & IV-curve test), quality plan EPC, lightning protection, kontrol hot work, and housekeeping.<\/span><\/p>\n

                          Realistic project duration (underwriter penalties for \u201ctight\u201d schedules that are prone to overtime & accidents).<\/span><\/p>\n

                          L&G typically presents a Construction Risk Assessment (layout, wind design, foundations, flood mitigation plans, temporary works) for a more relaxed discount rate and sub-limits (e.g. extended testing).<\/span><\/p>\n

                          Operation & Maintenance (O&M) Phase<\/b><\/h3>\n

                          Main Risks<\/b><\/h4>\n
                            \n
                          1. Extreme weather (wind, hail\u2014depending on the area), lightning, floods, landslides.<\/span><\/li>\n
                          2. Theft\/vandalism of modules, copper cables, combiner boxes.<\/span><\/li>\n
                          3. Equipment failure (inverter, transformer, recloser, tracker motor).<\/span><\/li>\n
                          4. Performance degradation (soiling, module delamination, PID).<\/span><\/li>\n
                          5. Grid fault & reverse power.<\/span><\/li>\n<\/ol>\n

                            Relevant Insurance Types<\/b><\/h4>\n
                              \n
                            1. Property All Risks (PAR)\/Industrial All Risks (IAR)<\/span><\/li>\n<\/ol>\n

                              Covers physical damage to equipment & physical assets during operations.<\/span><\/p>\n

                                \n
                              1. Machinery Breakdown (MB)<\/span><\/li>\n<\/ol>\n

                                Mechanical\/electrical failure of critical equipment (inverters, transformers, switchgear).<\/span><\/p>\n

                                  \n
                                1. Business Interruption (BI) \/ Loss of Revenue<\/span><\/li>\n<\/ol>\n

                                  Covers loss of income due to damage covered by PAR\/MB during the recovery period.<\/span><\/p>\n

                                    \n
                                  1. Equipment\/Stock Floater for expensive spare parts.<\/span><\/li>\n
                                  2. General\/Public Liability for third party claims during operations.<\/span><\/li>\n
                                  3. Environmental Liability (optional, specifically for sensitive areas\/floating solar power plants).<\/span><\/li>\n
                                  4. Crime\/Theft Extension (cable\/panel theft) \u2013 often a concern for underwriters.<\/span><\/li>\n<\/ol>\n

                                    How Much Does the Premium Cost?<\/b><\/h4>\n
                                      \n
                                    1. PAR\/IAR: indication of 0.05% \u2013 0.30% of Total Insured Value (TIV) per year.<\/span><\/li>\n
                                    2. MB: 0.03% \u2013 0.08% of critical machine value.<\/span><\/li>\n
                                    3. BI\/Loss of Revenue: based on gross profit\/expected revenue; indicates 0.12% \u2013 0.40% of the potential loss value during the Indemnity Period (e.g. 6\u201312 months).<\/span><\/li>\n
                                    4. GL\/PL: 0.05% \u2013 0.15% of the limit.<\/span><\/li>\n
                                    5. Theft extension can increase the rate by +0.02% \u2013 0.06% depending on history and security.<\/span><\/li>\n<\/ol>\n

                                      How to Reduce Premiums<\/b><\/h4>\n
                                        \n
                                      1. SCADA & monitoring real-time, string-level alerting, preventive maintenance (thermography, insulation resistance test, earth resistance test).<\/span><\/li>\n
                                      2. Security: multi-layered fencing, CCTV, perimeter intrusion detection, anti-theft fasteners, patrols.<\/span><\/li>\n
                                      3. Catatan performa (PR, availability >99%), spare parts strategy, SLA OEM.<\/span><\/li>\n<\/ol>\n

                                        L&G helps benchmark O&M KPIs and develop loss prevention plans that are preferred by underwriters so that deductibles and rates can be better.<\/span><\/p>\n

                                        Financial Aspects: Tender & Performance Guarantee (Surety)<\/b><\/h3>\n

                                        When is it needed?<\/b><\/h4>\n

                                        EPC solar power projects (private or PLN\/IPP) usually require tender guarantees and implementation guarantees as part of the contract to ensure the contractor’s commitment.<\/span><\/p>\n

                                        Types of Guarantees<\/b><\/h4>\n
                                          \n
                                        1. Bid Bond (Tender Guarantee)<\/span><\/li>\n<\/ol>\n

                                          Guarantee that the tender winner will not withdraw and will sign the contract.<\/span><\/p>\n

                                            \n
                                          1. Performance Bond<\/span><\/li>\n<\/ol>\n

                                            Ensure contractors complete projects according to specifications & schedule.<\/span><\/p>\n

                                              \n
                                            1. Advance Payment Bond (if there is a down payment).<\/span><\/li>\n
                                            2. Maintenance\/Warranty Bond (maintenance time).<\/span><\/li>\n<\/ol>\n

                                              How much is the premium (surety)?<\/b><\/h4>\n
                                                \n
                                              1. Bid Bond: relatively small & short fee (tender duration), indication 0.1% \u2013 0.3% of the collateral value (fee).<\/span><\/li>\n
                                              2. Performance Bond: 0.5% \u2013 1.5% per year of the collateral value (depending on the contractor’s financial rating, collateral, track record).<\/span><\/li>\n
                                              3. Advance \/ Maintenance Bond: looks like performance, arrange case-by-case.<\/span><\/li>\n<\/ol>\n

                                                Besides through a surety company, tender and performance guarantees (surety bonds) can also be issued in the form of a counter-bank guarantee. The contractor provides a bank guarantee to an insurance company, which then issues a surety bond to the project owner. Costs are generally slightly higher due to the bank’s involvement, ranging from 1.0% to 2.0% per year of the guarantee value, depending on the contractor’s financial condition and collateral.<\/span><\/p>\n

                                                The Role of Brokers<\/b><\/h3>\n

                                                L&G assesses the contractor’s financial capabilities, compiles a surety credit profile, and matches them with a surety company with the right appetite, resulting in more efficient fees with realistic terms (collateral\/indemnity).<\/span><\/p>\n

                                                Premium Simulation: 50 MWp Solar Power Plant Project (Illustrative)<\/b><\/h3>\n

                                                Summary assumptions: 50 MWp ground-mounted project in Java, EPC value Rp 700 billion, operating TIV Rp 600 billion, annual revenue Rp 120 billion; construction duration 12 months; lowland location, moderate flood risk, moderate winds.<\/span><\/p>\n

                                                 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
                                                Phase \/ Policy<\/b><\/th>\nCalculation Basis<\/b><\/th>\nTariff Indication<\/b><\/th>\nPremium Estimate<\/b><\/th>\n<\/tr>\n<\/thead>\n
                                                Marine Cargo (ICC A)<\/b><\/td>\nThe value of equipment imports is IDR 300 billion<\/span><\/td>\n0,15%<\/span><\/td>\nRp450.000.000<\/b><\/td>\n<\/tr>\n
                                                Inland Transit<\/b><\/td>\nRp. 300 billion (trucking)<\/span><\/td>\n0,08%<\/span><\/td>\nRp240,000,000<\/b><\/td>\n<\/tr>\n
                                                EAR (incl. Testing)<\/b><\/td>\nProject value IDR 700 billion<\/span><\/td>\n0,18%<\/span><\/td>\nRp1.260.000.000<\/b><\/td>\n<\/tr>\n
                                                TPL (Construction)<\/b><\/td>\nLimit of Rp. 50 billion<\/span><\/td>\n0,10%<\/span><\/td>\nRp50.000.000<\/b><\/td>\n<\/tr>\n
                                                DSU\/ALoP<\/b><\/td>\nExposed income 6 months \u2248 Rp60 billion<\/span><\/td>\n0,35%<\/span><\/td>\nRp210.000.000<\/b><\/td>\n<\/tr>\n
                                                PAR\/IAR (Operations)<\/b><\/td>\nTIV Rp. 600 billion<\/span><\/td>\n0,10%\/thn<\/span><\/td>\nRp. 600,000,000 \/ year<\/b><\/td>\n<\/tr>\n
                                                MB<\/b><\/td>\nCritical assets of Rp200 billion<\/span><\/td>\n0,05%\/thn<\/span><\/td>\nRp. 100,000,000 \/ year<\/b><\/td>\n<\/tr>\n
                                                BI (12 bln)<\/b><\/td>\nGP per year Rp. 120 billion<\/span><\/td>\n0,25%<\/span><\/td>\nRp. 300,000,000 \/ year<\/b><\/td>\n<\/tr>\n
                                                GL Operations<\/b><\/td>\nLimit of Rp. 25 billion<\/span><\/td>\n0,08%\/thn<\/span><\/td>\nRp. 20,000,000 \/ year<\/b><\/td>\n<\/tr>\n
                                                Bid Bond<\/b><\/td>\nGuarantee value of IDR 14 billion (2% tender)<\/span><\/td>\n0,20%<\/span><\/td>\nRp28,000,000<\/b><\/td>\n<\/tr>\n
                                                Performance Bond<\/b><\/td>\nGuarantee value of IDR 70 billion (10% of the contract)<\/span><\/td>\n1,00%<\/span><\/td>\nRp. 700,000,000 \/ year<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                                                 <\/p>\n

                                                Important: The figures above are not offers, but merely illustrations to help decision-makers understand the premium order and the coverage-cost trade-off. With risk improvement and broker negotiation, the total premium can be more efficient.<\/span><\/p>\n

                                                Strategies to Reduce Premiums Without Sacrificing Protection<\/b><\/h3>\n