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The Indonesian government is currently accelerating the development of infrastructure and public housing throughout the region.<\/span><\/p>\n From subsidized housing projects, public facility construction, to school building and house of worship renovations \u2014 thousands of local contractors are actively involved in these projects.<\/span><\/p>\n However, behind the enthusiasm for development, many contractors still forget one important element: project insurance protection.<\/span><\/p>\n Some believe project insurance is merely a formality. Others believe the cost isn’t worth it, or feel their projects are small enough not to warrant coverage.<\/span><\/p>\n In fact, the risk of damage, accidents or loss does not recognize the size of the project.<\/span><\/p>\n One small incident can wipe out a contractor’s entire profits and even working capital.<\/span><\/p>\n Therefore, every professional contractor should make CAR (Contractor’s All Risks) or EAR (Erection All Risks) insurance a mandatory requirement in every project contract.<\/span><\/p>\n And to ensure everything runs smoothly and efficiently, use a professional insurance broker such as PT Liberty and General Insurance Broker (L&G Insurance Broker).<\/span><\/p>\n Before discussing project risks further, it is important to understand the difference between insurance agents and brokers.<\/span><\/p>\n In other words, a broker is an independent advisor who sides with the contractor, not the insurance company.<\/span><\/p>\n Broker duties include:<\/span><\/p>\n As an official broker licensed by the OJK, L&G Insurance Broker has more than two decades of experience assisting contractors, developers, and EPC companies throughout Indonesia.<\/span><\/p>\n From residential projects to energy projects worth hundreds of billions of rupiah \u2014 L&G understands every aspect of risk and the assurance required.<\/span><\/p>\n In the professional construction world, insurance is no longer optional, but an integral part of the work contract.<\/span><\/p>\n Some of the main reasons:<\/span><\/p>\n In other words, without insurance, the contractor is risking his entire reputation and finances on a single project.<\/span><\/p>\n Construction is one of the highest-risk business sectors. Here are some examples of risks that can occur at any time:<\/span><\/p>\n All these risks can be covered if the contractor has the right CAR or EAR insurance policy.<\/span><\/p>\n This insurance covers physical damage to civil projects or buildings during the construction period.<\/span> This insurance is intended for mechanical and electrical installation projects, such as:<\/span><\/p>\n These two policies can be combined or customized depending on the type of project and the contractor’s needs.<\/span><\/p>\n In many project documents, especially large or government-funded projects, there is a clause that requires active project insurance before implementation begins.<\/span><\/p>\n Usually called:<\/span><\/p>\n \u201cThe Contractor shall provide valid Contractor\u2019s All Risks (CAR) Insurance covering all works during the construction period.\u201d<\/span><\/p>\n If the contractor cannot provide proof of policy:<\/span><\/p>\n Thus, including an insurance clause in the contract from the outset is a mandatory step to protect the interests of all parties \u2014 the contractor, the project owner, and the subcontractors.<\/span><\/p>\n There are still many contractors who make mistakes when it comes to insurance, such as:<\/span><\/p>\n All these mistakes can be avoided by using a professional broker like L&G Insurance Broker.<\/span><\/p>\n PT Liberty and General Insurance Broker (L&G Insurance Broker) is an OJK-licensed national insurance broker with a strong reputation in the field of construction project insurance.<\/span><\/p>\n L&G has been a partner for hundreds of contractors, developers and EPC companies throughout Indonesia.<\/span><\/p>\n L&G Advantages:<\/span><\/p>\n L&G is not just a policy seller, but your risk advisor and financial protector.<\/span><\/p>\n To close a project insurance policy through L&G, contractors only need to prepare:<\/span><\/p>\n Once the documents are received, L&G will:<\/span><\/p>\n One of the main reasons contractors trust L&G is its fast and thorough claims assistance.<\/span><\/p>\n The steps:<\/span><\/p>\n With L&G’s professional support, contractors don’t need to worry about facing the lengthy bureaucracy that often occurs with direct claims.<\/span><\/p>\nThe Role of Insurance Brokers and Why Contractors Need Them<\/span><\/h3>\n
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Why Insurance Should Be Part of a Project Contract<\/span><\/h3>\n
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\n<\/span>Workplace accidents, fires, material theft, or extreme weather can cause significant losses that could bring a project to a complete halt.<\/span><\/li>\n
\n<\/span>Many large government, state-owned enterprise and private projects<\/span>requires an active CAR\/EAR policy<\/b>before work mobilization begins.<\/span><\/li>\n
\n<\/span>Contractors who have insurance policies show that they are serious, responsible, and have good risk management.<\/span><\/li>\n
\n<\/span>If a loss occurs that results in a claim from a third party, insurance will protect the contractor from legal risks and compensation costs.<\/span><\/li>\n<\/ul>\nReal Risks That Lurk for Contractors<\/span><\/h3>\n
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\n<\/span>Errors in casting, installation of steel structures, or foundation calculations can lead to cracks, collapse, or major damage.<\/span><\/li>\n
\n<\/span>The use of welding equipment, chemicals, or unstable electrical installations can trigger fires at project sites.<\/span><\/li>\n
\n<\/span>Materials such as iron, cement, and cables are frequently stolen in open project areas.<\/span><\/li>\n
\n<\/span>Workers falling, being struck by falling materials, or causing injury to others can result in lawsuits and large compensation.<\/span><\/li>\n
\n<\/span>Floods, earthquakes, or landslides could completely destroy a project.<\/span>
\n<\/span>This coverage can be added as an extension to a CAR\/EAR policy.<\/span><\/li>\n<\/ul>\nWhat is CAR and EAR Insurance?<\/span><\/h3>\n
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\n<\/span>Includes:<\/span><\/p>\n\n
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Insurance Obligations in Contract Documents<\/span><\/h3>\n
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Common Contractor Mistakes Regarding Insurance<\/span><\/h3>\n
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\n<\/span>Many contractors only take care of insurance once the project is underway, even though risks can arise from the first day work begins.<\/span><\/li>\n
\n<\/span>Agents only represent one company and cannot provide the best selection or extensive guarantees.<\/span><\/li>\n
\n<\/span>Contractors are often tempted by low premiums without understanding the policy’s terms. As a result, claims can be denied due to hidden exclusions.<\/span><\/li>\n
\n<\/span>When a loss occurs, many people don’t know how to report it, prepare documents, or communicate with the insurance company.<\/span><\/li>\n<\/ul>\nProfessional Solution: Use L&G Insurance Broker Services<\/span><\/h3>\n
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Policy Closing Process Through L&G<\/span><\/h3>\n
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Fast and Transparent Claim Process<\/span><\/h3>\n
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Benefits for Contractors Working with L&G<\/span><\/h3>\n
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Make CAR\/EAR Insurance the Standard of Professionalism<\/span><\/h3>\n