Welcome to Liga Asuransi, a risk management and insurance education portal that will review the importance of protecting your business to prevent it from suffering the same fate when a disaster strikes suddenly.
Tragedy rocked the Indonesian mining industry. A massive landslide occurred at PT Freeport Indonesia’s underground mine, claiming lives and crippling much of production. Mining activity, normally the driving force of this giant’s economy, was abruptly halted by the unpredictable disaster.
Behind the sorrow, there are financial facts that are no less surprising:the value of insurance claims reached trillions of rupiah.This staggering figure demonstrates the enormous risks mining companies face and the vital role insurance plays in ensuring the continuity of even the largest businesses. Without insurance coverage, such losses could destroy a company’s foundation, cripple its cash flow, and trigger a domino effect on thousands of workers and the national supply chain.
This is whybusiness insuranceand all risks property insurance It’s no longer just an optional extra, but an absolute necessity. If a company like Freeport needs protection, what about your business?
Freeport Case Review & Lessons for Business
The landslide at Freeport’s underground mine is not just sad news. It has become a…loud alarmFor all business actors, from giant corporations to medium-sized businesses. Let’s examine it from the perspective of risk management and business learning.
- Scale of Risk in the Mining Industry
The mining industry is indeed full of risks:
- Natural risks→ landslides, floods, earthquakes.
- Technical risks→ equipment failure, explosion, fire.
- Human risk→ work accidents, human error, social conflict.
Even though Freeport operates with advanced technology, it still can’t completely eliminate risk.there is definitely a risk, can only be managed, not eliminated.
- Trillions in Insurance Claims: What Does It Mean?
When a landslide occurs, a company loses more than just physical assets. The losses extend to various aspects:
- Damage to mining facilities & heavy equipment which is worth billions of dollars.
- Disruption of production & supply chain, which has an impact on global sales contracts.
- Social costs in the form of compensation for victims and affected workers.
All of that results in insurance claims worth trillions of rupiahWithout insurance, who could cover such a large loss? Even conglomerates could falter.
- Relevance to Your Business
Maybe you think:“That’s Freeport, a giant company. My business is much smaller.”
That’s precisely the problem. If a company as big as Freeport needs extra protection,especially your business may not have trillions in reserves for recovery.
Simple example:
- Your warehouse is on fire → stock runs out, distribution is paralyzed, customers run away.
- Floods enter the factory → machines are damaged, production stops for months.
- Fire in a shophouse → business assets burned overnight.
All of that is possible to kill business if there is no insurance coverage.
- Important Lessons
The Freeport case confirms one thing:
- The risk is real.
- The loss was expensive.
- Insurance is the solution.
Insurance is not just a formality document. It is the last bastion when all preventative measures fail. And it’s not just mining; any business, whether a shop, factory, warehouse, or office, needs the same protection.
Types of Insurance a Business Needs
If we look at the Freeport case, it is clear that without business insurance protectionThe impact of losses can be devastating. However, insurance isn’t just for large mining companies. Small, medium, and large-scale businesses still need proper protection. Let’s discuss several types of insurance essential for the business world.
This is the type of insurance that most business people are looking for.All risks property insurance provides comprehensive protection for company assets, such as:
- Office buildings, warehouses, or factories.
- Production machinery and equipment.
- Stock of goods or inventory.
The risks covered usually include fire, explosion, flood, hurricane, riot, even violent theftIn other words, almost any physical risk that could damage your business property can be transferred to an insurance company.
Imagine if your spare parts warehouse, electronics store, or garment factory caught fire. Without PAR, the losses could reach billions of rupiah. With PAR, those losses would be covered, and you could quickly recover.
Business losses are not just about the destruction of assets. There are also losses not visible in the form of stopping operations. For example:
- The factory stopped production for 6 months due to a fire.
- The restaurant cannot open because the building is being renovated after the flood.
This insurance covers loss of income due to operational disruptions. So, businesses still have cash flow even if production stops.
- Liability Insurance (Third Party Liability)
In business, the risk of a lawsuit is often more costly than physical damage. For example:
- A customer falls and slips in your business area and sues.
- Defective products cause harm to consumers.
- Your contractor’s workers cause damage to someone else’s property.
Liability insurance will cover legal costs, compensation, and damages claimed by third parties.
For businesses that rely on large machinery or heavy equipment, additional protection is necessary. Failure of production machinery or an excavator could halt operations.This insurancebear the risk of sudden damage, either due to accidents or technical factors.
- Employee Benefit Insurance
Equally important is protecting human resources. Without workers, businesses cannot operate. Programs such as health insurance, work accident insurance, and life insurance can be a form of protection as well as motivation for employees to be loyal.
If your business relies on the distribution of goods, whether by land, sea, or air, the risk of damage or loss in transit is very high.Marine cargo insurance will bear any losses during shipping.
Why Does All That Matter?
We learn from Freeport that losses can come from many sources: damaged assets, production halts, and even social costs. Without insurance, all of these will be lost.draining the company’s finances.
The main thing is: Insurance is not just a formality, but the foundation of business continuity.
Why Go Through a Broker, Not an Agent or Insurance Company Directly?
After seeing how big the business risks are, you might be thinking, “Okay, I do need insurance.” But the next question is:where to buy insurance?
Is it through an agent? Or directly to the insurance company?
The answer:not idealIf you are serious about wanting maximum protection and don’t want to lose out in the future, choose an official insurance broker like L&G Insurance Broker.
- Brokers are on your side, Agents are on the side of the company.
- AgentI work for an insurance company. Their job is to sell products according to targets. So, they won’t give you many options, let alone products that truly suit your needs.
- A broker, on the other hand, is a consultant who is on the client’s side. Brokers can access various insurance companies and compare the best police for you.
As a result, you don’t get stuck buying irrelevant products, but instead get a solution that suits your needs and budget.
- Brokers Have Expertise in Risk Analysis
Cases like the Freeport landslide demonstrate the complexity of business risks. Simply purchasing standard insurance isn’t enough.comprehensive risk analysis:
- Risk of fire, flood, earthquake.
- Operational and machine risks.
- Social and legal risks.
Brokers like L&G have a risk management expert team which helps map your business risks in detail. This way, the protection provided is much more targeted.
- Brokers accompany you during claims
This is the most crucial part. Many new business owners realize thatInsurance claims are not always easyThere are conditions, exceptions, and complicated documentation that can lead to a claim being rejected.
- Agents only help with sales, claims matters are usually handed over to the company.
- Brokers will stand by your sideL&G Insurance Broker, for example, provides guidance from start to finish to ensure claims run smoothly.
Imagine if your business suffered a fire or landslide, and your claim was rejected due to incomplete documentation. Without a broker, you would be frustrated. With a broker, you can rest assured that an expert will oversee the process.
- Broker = Save Time & Cost
Many people think that going through a broker will be more expensive. Although, insurance premiums remain the same, and often even more efficient. Why?
- Brokers can negotiate more competitive premiums.
- You don’t waste time choosing a policy yourself.
- The risk of buying the wrong policy can be avoided.
- L&G Insurance Broker: Trusted Business Partner
As one of the leading insurance brokers in Indonesia,L&G Insurance Broker has extensive experience handling clients from various industries: mining, manufacturing, distribution, and MSMEs.
- Our team of experts is ready to provide free consultation.
- Supported by a network of local and international insurance companies.
- Proven to help clients settle claims of up to billions of rupiah.
So, if you are serious about protecting your business,don’t just buy insurance from an agent or directly from the company. Choose a professional broker who is really on your side.
Freeport vs. MSME Business Case Study
When I heard the news about Freeport mine landslide, maybe many people think:
“Ah, that’s a giant company. Their losses are in the trillions. My business is small, it has nothing to do with it.”
In fact, such a mindset is completely wrong. In fact, the Freeport case could be…mirrorfor all business actors, including MSMEs.
- Freeport: A Giant That Still Needs Insurance
Freeport is one of the world’s largest gold and copper mines. Despite its massive assets, it remains aware that disaster risks can strike at any time.
- Landslides in underground mines cause loss of life.
- Mining operations are paralyzed.
- The insurance claim submitted reached trillions of rupiah.
Imagine if Freeport didn’t have insurance protection. Such a significant loss could disrupt the company’s continuity and even impact the national economy.
- MSMEs: Same Risk, Different Scale
Now let’s compare with small business:
- Motorcycle spare parts warehouse in Jakarta.
- Fashion shop in Bandung.
- Small restaurant in Surabaya.
The risks they face are actually the same: fire, flood, theft, property damage, or operational disruption.The only difference is in scale of loss.
If a spare parts warehouse worth Rp 3 billion burns down, it would be the same for the owner as Freeport losing trillions. It’s the same for both parties.can kill a business.
- What Can Be Learned?
Important lessons from Freeport:no business is immune to risk.
- The larger the scale of the business, the greater the potential for loss.
- The smaller the business capital, the more vulnerable it is if it does not have protection.
So, for both giant companies and SMEs,business insurance remains mandatoryThe only difference is the policy size and the type of protection required.
- The Role of the Broker: Adapting to the Scale of the Business
Many MSMEs hesitate to purchase insurance because they fear it will be expensive. This is where insurance comes in from L&G Insurance Brokers.
- Brokers can tailor policies to the scale of your business.
- No need to worry about premiums being a burden, because there are flexible options.
- Protection remains maximum, even for small-scale businesses.
- Freeport = Wake Up Call for All
The Freeport landslide tragedy should wake up to the call that risks can come at any time. If a company as big as Freeport has to depend on business insurance to survive, especially for medium and small scale businesses whose capital is more limited.
Closing & CTA
The Freeport mine landslide which claimed lives and stopped mining operations is clear evidence that business risks can cause extraordinary losses. Not only is there damage to physical assets, but also financial impacts, reputational impacts, and even business continuity. Fortunately, Freeport is protected by business insurance so that claims worth trillions of rupiah can be submitted to cover losses.
Now, imagine if your business—whether it’s a spare parts warehouse, a restaurant, a fashion store, or a small factory—experienced a similar event: a fire, a flood, or a major theft. Without insurance protection, the loss could wipe out years of capital overnight.
Here it is all risks property insurance and various typesbusiness insuranceOthers play a role. However, buying insurance cannot be done carelessly.Don’t just trust agents or go directly to insurance companies., because you risk getting an inappropriate policy or having difficulty making a claim. The solution is to work with a professional insurance broker who is really on your side.
As one of the leading insurance brokers in Indonesia, L&G Insurance Broker We’re here to help businesses from small to large. We don’t just sell policies, we also analyze risks, recommend the right products, and support you through to claim settlement.
Don’t wait until disaster strikes to realize the importance of protection.
Quick Consult your business insurance needs for FREE together L&G Insurance Broker through:
📲 WhatsApp: 08118507773
📧 Email: halo@lngrisk.co.id
Protecting your business starts today, because business resilience is a long-term investment.
