The growth of industrial estates and Special Economic Zones (SEZs) in Indonesia has accelerated over the past two decades. Areas such as Jababeka, KIIC, Batamindo, Gresik, Kendal, and Sei Mangkei have now become national production and export hubs. Thousands of companies operate there, with investments worth trillions of rupiah.
However, behind this enormous potential lies a variety of business risks that can threaten a company’s sustainability if not managed properly. Factory fires, floods, machine breakdowns, workplace accidents, or lawsuits from third parties can all result in enormous financial losses.
In this context, L&G Insurance Broker, as an independent and OJK-licensed insurance broker, plays a role in helping companies in industrial areas to have appropriate, comprehensive, and efficient insurance protection.
Many companies still purchase insurance simply to meet administrative requirements, without adequate risk analysis. As a result, when a major claim occurs, they don’t receive the compensation they deserve. This is where the role of an L&G Insurance Broker becomes crucial—not just as a policy broker, but as a professional risk advisor who fully protects the insured’s interests.
Risks Faced by Companies in Industrial Areas
Industrial areas are synonymous with technology-intensive activities, human resources, and heavy equipment. Each of these activities carries different risks, including:
- Property Risk
Fires, explosions, electrical short circuits, and natural disasters (floods, earthquakes, landslides) can destroy a company’s buildings, warehouses, and vital infrastructure.
- Risk of Machine Damage
High-value production machines can suddenly fail due to stress, human error, or power outages.
- Business Interruption Risk
When production stops due to facility damage, companies lose revenue and customers. Business Interruption Insurance protects against this loss of revenue.
- Legal and Third Party Risks
Chemical leaks, environmental pollution, or accidents involving outside parties can result in major lawsuits against a company.
- Shipping and Logistics Risks
Goods damaged or lost during shipping, whether by land, sea or air, are a major threat to the industrial supply chain.
- Employee Risks
Thousands of workers face the potential for workplace accidents. Employment and personal accident insurance represent a company’s moral and legal responsibility.
Common Mistakes Companies Make in Arranging Insurance
From L&G Insurance Broker’s decades of experience handling industrial clients in various regions, there are several common mistakes that often occur:
- Buying insurance from friends or acquaintances, not professionals.
As a result, the policy is not adjusted to the actual risk. - Not reading the policy details and exclusions.
Many claims are denied due to a lack of understanding of policy wording. - Underinsurance (insurance value is too low).
The asset value increases every year, but the policy is not renewed. - There was no companion during the claim.
Without a broker, claims often get stuck due to miscommunication with the insurance company.
Mistakes like these cost companies billions of rupiah in lost claims — all of which could have been avoided with the help of a professional insurance broker like L&G.
Types of Insurance that Companies in Industrial Areas Must Have
To be fully protected, companies in industrial areas should ideally have the following main types of insurance:
- Property All Risks (PAR) – protects buildings, warehouses, and facilities from fire, explosion, or natural disasters.
- Machinery Breakdown Insurance – covers sudden breakdowns of production machinery.
- Business Interruption Insurance – covers lost profits when production stops due to facility damage.
- Public & Product Liability Insurance – protects against third-party claims due to losses resulting from products or business activities.
- Marine Cargo / Inland Transit Insurance – protects goods in transit.
- Motor Vehicle & Truck Insurance – covers transportation fleets against accidents and theft.
- Contractors’ Plant and Machinery (CPM) – essential for companies with heavy equipment.
- Employee Personal Accident & Group Health Insurance – protection for workers against accidents and health.
L&G Insurance Brokers typically help clients design the most efficient combination of insurance programs based on their respective industry needs.
The Strategic Role of Insurance Brokers in Protecting Companies
An insurance broker is more than just a policy seller. Their role is much broader and more strategic. Based on L&G Insurance Broker’s practice, the following are the main functions of a professional broker:
- Risk Assessment
Conduct field surveys and identify all potential risks in industrial areas.
- Insurance Program Design
Design a policy that suits your business character, including limits, deductibles, and coverage extensions.
- Market Placement & Negotiation
Brokers like L&G have extensive networks with various insurance companies. By maintaining a neutral position, brokers can negotiate the best premiums with the most favorable terms for clients.
- Policy Administration
Manage all documents, endorsements, and policy updates to ensure they are always valid and in line with changing risks.
- Claim Assistance
L&G’s greatest added value is comprehensive claims assistance. The claims team helps gather documents, coordinates with loss adjusters, and ensures claims are paid according to the insured’s rights.
Case Study: Broker vs Non-Broker
Two manufacturing companies in the Bekasi industrial area have experienced major fires.
- Company A (without a broker) purchased insurance directly from an insurance company. Upon claiming, it was discovered that the electrical short circuit risk was not covered. The claim was only paid 40%.
- Company B (a client of L&G Insurance Broker) previously underwent a risk assessment and policy wording adjustments. When the fire occurred, L&G assisted with the claims process. Within three months, the claim was paid in full, according to the insured amount.
The result is clear: a broker is not an additional expense, but a financial lifeline when disaster strikes.
Why It’s Not Enough to Buy Insurance from a Friend
Buying insurance from friends or relatives may seem easy and affordable. However, business protection cannot be based on personal relationships.
Friends may be genuinely helpful, but they don’t always have the ability to:
- Analyzing industry risks
- Checking policy wording details
- Determining accurate insurance value
- Accompanying claims with loss adjusters and insurers
When a major claim occurs, personal relationships can be damaged by technical errors. By using a professional broker like L&G Insurance Broker, companies are guaranteed service based on competence, not familiarity.
Claims Process: Brokers as Advisors and Companions
Claims are the true test of an insurance policy’s quality. This is where L&G’s role becomes crucial.
The steps taken by the L&G team to assist clients include:
- Guiding clients from day one of the incident to initial reporting to the insurer.
- Assist in preparing claim documents completely and in accordance with the format.
- Accompanying the field survey process by the loss adjuster.
- Negotiating the adjuster’s report results with the insurance company.
- Ensure claims are paid on time and according to the value of the loss.
With a professional work system and extensive experience in the manufacturing, energy, and mining industries, L&G Insurance Broker has proven its ability to expedite the settlement of large, complex claims.
Positive Impacts of Using Insurance Brokers for Companies
Companies that work with L&G Insurance Broker gain real benefits, including:
- More accurate protection according to business character.
- More efficient premiums due to professional negotiation results.
- Orderly and documented policy administration.
- The claims process is fast and transparent.
- Ongoing education regarding risk management and occupational safety.
Thus, companies do not just buy a policy, but get a long-term risk protection strategy.
How to Choose the Right Insurance Broker
Before appointing a broker, ensure the following criteria are met:
- Registered and supervised by the Financial Services Authority (OJK).
- Experienced in industry, energy, construction and logistics.
- Has its own underwriting and claims team.
- Good reputation and has large corporate clients.
- Providing additional services such as risk audits and HSE consulting.
L&G Insurance Broker has met all these criteria and has proven to be a trusted partner for many national and multinational companies in Indonesia.
Conclusion: Insurance Is an Investment, Not an Expense
Amidst economic uncertainty and the complexity of industrial risks, insurance is no longer just an administrative obligation, but a business continuity strategy.
However, simply purchasing a policy isn’t enough. Companies need a partner who understands the risks, understands the wording, and is able to advocate for the insured’s rights when a claim arises.
This is where L&G Insurance Broker plays a strategic role as a partner — helping companies in industrial areas to get maximum protection, competitive premiums, and fair claims settlement.
Ensure your business is properly protected. Use the services of a professional insurance broker like L&G Insurance Broker to ensure the security, stability, and future sustainability of your business.
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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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