Between Business Growth and Risk in Banten
Banten Province is known as one of the fastest-growing economic regions in Indonesia. From the heavy industrial areas of Cilegon, the manufacturing areas of Tangerang, the trade centers of Serang, to the tourism and agribusiness potential of Pandeglang and Lebak, Banten is home to thousands of businesses ranging from micro, small, and medium enterprises (MSMEs) to multinational corporations.
However, behind this great potential, there is one thing that is often overlooked: business risk.
Every year, numerous factory fires, floods, or losses due to unexpected operational disruptions occur. Ironically, most businesses have insurance policies—but still can’t file claims because their policies aren’t designed based on proper risk analysis.
“Insurance is important, but it is even more important to ensure that the policy you purchase actually covers the risks you face.,” said a client of L&G Insurance Broker in South Tangerang.
This is why risk management consultation before purchasing an insurance policy is an important step for entrepreneurs in Banten.
What is Risk Management in the Context of Insurance?
Risk management is the process of identifying, assessing, and controlling threats to business assets. In the context of insurance, this means understanding what could lead to financial loss and then determining how to transfer that risk to the insurance company.
Three main principles of risk management:
- Risk Avoidance: avoiding risks (e.g. not storing flammable chemicals near fire sources).
- Risk Reduction: reducing potential impacts (installing sprinklers and smoke detection systems).
- Risk Transfer: transferring risk to an insurance company through an appropriate policy.
Insurance brokers like PT. Liberty and General Insurance Broker (L&G Insurance Broker) act as independent consultants, helping entrepreneurs through this entire process, not just selling policies.
Common Mistakes Banten Entrepreneurs Make When Purchasing Insurance Policies
There are still many Banten entrepreneurs — bothMSMEsand large corporations — who purchase policies without risk analysis. Some common mistakes include:
- Purchased because of agent acquaintance, not because of business needs.
- Not knowing about risks that are not insured, such as floods or earthquakes.
- The insurance value is too low (underinsured).
- Not reviewing the policy every year, even though assets are increasing.
For example, Mr. Ridwan, a building materials store owner in Serang, purchased a standard fire policy. However, when his warehouse was flooded, his claim was rejected because flooding was not covered. After consulting with L&G Insurance Broker, he obtained a Property All Risk policy with additional natural disaster coverage tailored to Serang’s geographic location.
Why Risk Management Consulting Is Important
Purchasing a policy without consulting a health care professional is like taking medication without a doctor’s diagnosis. You might spend money, but you might not get the right coverage.
Through risk management consulting, entrepreneurs will:
- Understand the unique risk profile of the business.
- Determining what type of police is truly relevant.
- Avoid wasted premiums due to duplication of coverage.
- Ensure policies are tailored to operational conditions and location.
In Banten, each area has different risks — factories in Cikande are more vulnerable to fire, while hotels in Anyer face the risk of storms and tidal waves.
Without this analysis, the insurance policy may be ineffective.
Risk Consultation Steps with L&G Insurance Broker
L&G Insurance Broker, based in Bintaro, South Tangerang, provides professional risk consulting services for various types of businesses in Banten.
The process includes:
- Risk Identification
The L&G team makes on-site visits to business locations — for example, a factory in Cikande, a warehouse in Bitung, or a hotel in Anyer.
- Risk Analysis
Assess the likelihood and impact of each potential loss.
- Mitigation Plan
Provide recommendations for risk prevention and control, such as improving security systems, electrical inspections, or placing fire extinguishers.
- Insurance Program Design
Determine the appropriate policy type — Property All Risk, Liability, Marine Cargo, or Business Interruption.
- Annual Evaluation
Every year, L&G conducts policy reviews and risk audits, ensuring that coverage stays in line with client business developments.
Case Study #1 – Steel Industry in Cilegon
PT Baja Sentosa (pseudonym) is a steel company in Cilegon. Last year, they experienced a furnace explosion that caused losses of up to Rp 12 billion. Unfortunately, their insurance policy only covered fires, not explosions.
The claim was rejected.
After consulting with a broker, the company received a comprehensive risk analysis and switched to an Industrial All Risks with Business Interruption policy. When a similar incident occurred in another area six months later, the claim was fully approved by the insurance company—providing the importance of proper risk consultation before purchasing a policy.
Case Study #2 – Hotel in Anyer
Hotel Taman Samudra, one of the accommodations in Anyer, experienced a tropical storm that damaged part of its roof and beach facilities. Their previous policy did not cover storm and flood coverage.
After the Broker conducts a risk assessment, the policy is updated with additional coverage for storms, floods, and tidal waves.
When the next storm hit, the hotel suffered less damage — but the entire Rp1.2 billion repair cost was paid in full by insurance.
Types of Risks that Often Occur in Banten
| Region | General Business Types | Main Risks | The Right Insurance Solution |
| Tangerang & Bintaro | Manufacturing, logistics | Fire, engine damage | Industrial All Risk |
| Cilegon | Chemical and steel industry | Explosion, pollution, liability | Property + Liability |
| Attack | MSMEs, trade | Fire, flood | Property All Risk |
| Pandeglang & Lebak | Agribusiness, tourism | Natural disasters | Crop / Hotel Insurance |
| Anyer – Story | Hospitality & beach tourism | Tidal waves, storms | Property All Risk + Flood |
Each region requires a different protection approach. That’s why L&G Insurance Broker always begins the process with a risk consultation based on location and industry type.
The Role of Insurance Brokers Like L&G Insurance Broker
- Insurance brokers are different from agents.
- An agent represents an insurance company, while a broker represents the interests of the client.
- As an independent party licensed by the OJK, L&G Insurance Broker is responsible for:
- Provide written risk reports.
- Compare various products from many insurance companies.
- Designing the most efficient combination of premiums and protection.
- Accompanying clients from risk analysis to claim settlement.
In other words, a broker is a risk advisor and long-term business partner, not just a policy seller.
Broker vs Agent: Who’s Really Working for You?
| Aspect | Insurance Broker (L&G) | Insurance Agent |
| Represented party | Customer | Insurance Company |
| Product Options | Many companies | One company |
| Risk Analysis | Deep and specific | Rarely done |
| Claims Assistance | Active, detailed | Limited |
| Objectivity | Independent | Tends to be biased |
| Added Value | Risk assessment, policy review | Sales focus |
With a broker like L&G Insurance Broker, Banten entrepreneurs can get maximum protection at no additional cost.
Premium Estimates and Consultation Fees
One of the advantages of working with L&G Insurance Broker is that risk management consultations are usually free, as the cost is included in the insurance company’s commission.
The following is an overview of the estimated premiums in Banten:
| Business Scale | Asset Value | Police Type | Estimated Annual Premium |
| MSMEs | Rp. 1 billion | Property All Risk | Rp. 2 – 3 million |
| Secondary | Rp. 10 billion | Industrial All Risk | Rp. 25 – 40 million |
| Large corporations | Rp. 100 billion+ | Corporate Package (All Risk, Liability, Marine) | Rp. 150 million+ |
Premiums can be negotiated by brokers, so that entrepreneurs get optimal protection at efficient costs.
Real Impact After Risk Consultation
After undergoing risk management consultation with L&G Insurance Broker, many clients in Banten reported positive results:
- Premiums decrease without reducing coverage.
- Policies are more relevant to business conditions.
- Faster and larger claims are accepted.
- Risk awareness within the organization is increasing.
“Before using L&G, we had three overlapping policies. After the risk audit, premiums dropped 25%, but coverage expanded,” said a manufacturing client in Tangerang.
Risk Management Challenges in Banten
Some of the main challenges still faced by the business world in Banten include:
- Lack of understanding of risk and insurance.
- High geographic risks such as flooding and storms on the coast.
- Dependence on one insurance company.
- Claims are delayed due to lack of professional assistance.
The best solution: work with an independent, experienced insurance broker like L&G Insurance Broker, who understands local conditions and has a national and international network.
L&G Insurance Broker – Banten Business Risk Management Partner
- Liberty and General Insurance Broker (L&G Insurance Broker) is a professional insurance brokerage company located in Bintaro, South Tangerang, part of the Banten Province.
For over a decade, L&G has been a strategic partner for local and foreign entrepreneurs in Banten, from factories in Cilegon and Cikande to logistics companies in Bitung and hotels in Anyer.
L&G Insurance Broker Advantages:
- Official permission from the Financial Services Authority (OJK).
- A team of certified risk experts with international experience.
- Extensive network with dozens of national and global insurance companies.
- Full service ranging from risk assessment, policy design, to claims assistance.
Conclusion: Protect Your Business with the Right Approach
Purchasing an insurance policy without risk consultation is a common mistake that can have fatal consequences.
Every business in Banten — whether an MSME in Serang, a factory in Cilegon, or a foreign company in Tangerang — has different risks and requires tailored solutions.
“Don’t buy a policy before you know what needs to be protected.”
Conduct a risk management consultation first with L&G Insurance Broker, an OJK-licensed insurance broker ready to be your business protection partner in Banten.
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DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM: 0811-8507-773(CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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