In 2025, the public was shocked by a massive fire that engulfed a paint and body repair shop in Bandung. The incident went viral as the fire quickly engulfed the oven room, compressor room, and rows of customer vehicles awaiting work. Preliminary investigations revealed the fire was caused by a short circuit in a compressor that had been running unattended overnight. A small spark triggered a chemical explosion in the paint room, causing the fire to spread rapidly.
The losses incurred were not limited to the burned-out building. Dozens of customer cars were also burned, work documentation was lost, key equipment was completely destroyed, and the workshop’s operating permit was immediately suspended pending investigation. The workshop owner is estimated to have incurred potential losses exceeding IDR 12 billion. The most severe impact is the loss of customer trust and the long-term impact on business continuity. This incident serves as an important reminder that workshop operations are a high-risk activity. Risk is no longer viewed as a remote possibility, but as a “when will it happen” situation. Therefore, the safest course of action is to ensure that the workshop’s insurance coverage is properly designed, comprehensive, and placed with a credible insurance and reinsurance company.
Before a major risk occurs and permanently closes a business, repair shop owners should have access to robust protection plans. Therefore, to ensure maximum protection, rather than simply a policy formality, it’s crucial to work with a professional insurance broker rather than purchasing a policy directly. As a liaison, a reminder, and a call to action, it’s crucial for repair shop owners to conduct a risk assessment immediately. And before we delve into the technical details, it’s important to note that assistance is available. Contact L&G Insurance Broker now on 08118507773 for a free consultation with our experts, to ensure your repair shop business is protected before a similar incident hits your business.
Risk Analysis of Paint and Body Repair Workshops
The paint and body repair industry is one of the businesses with the highest risk components. This is due not only to the use of flammable materials but also to operational structures that involve heat, pressure, and heavy equipment. Here’s an analysis of the most common risks:
1. Flammable Chemicals
During the painting process, materials such as thinner, epoxy hardener, primer, and paint solvent contain volatile components that are highly flammable. When these materials are exposed to even the slightest spark or excessively hot room temperatures, the potential for fire increases dramatically.
2. Risks in the Oven and Compressor Room
Paint ovens operate at high temperatures. Compressors operating at high air pressure also generate significant heat. Unstable electrical currents or poor ventilation increase the risk of short circuits. This is the primary cause of fires in paint workshops in Bandung.
3. Gas Cylinder and Spray Booth Explosion
Nitrogen or LPG gas cylinders used for oven burners can explode if even a small leak goes undetected. Spray booths also contain high concentrations of flammable aerosols.
Without proper risk management and workshop property insurance coverage, a single small fire can become a source of total destruction.
Risk of Damage to Customer Vehicles
Workshops aren’t just responsible for their buildings and internal assets. They also have a crucial asset that carries significant responsibility: customers’ vehicles. The following risks are very common:
1. Collision During Test Drive
Several cases have shown mechanics conducting test drives without clear safety procedures. The resulting accidents not only damage customers’ cars but also lead to lawsuits and potential negative publicity.
2. Vehicle Theft
Many repair shops lack reliable CCTV surveillance systems. When a vehicle is lost or stolen, repair shop owners are legally obligated to compensate for the loss.
3. Damage When Parking or Moving
Minor bumps, scratches, or panel damage often occur, especially in workshops with high levels of vehicle mobility.
These losses should be anticipated through Garage Keeper Liability protection, a special policy that covers damage to a customer’s vehicle while it is in the workshop area.
Risk Protection Recommendations for Workshops
Based on the risk analysis above, here is the ideal protection plan:
- Fire Insurance: Protection against the risks of fire, explosion, short circuits, and heat-related damage. This is the foundation of workshop insurance.
- Machinery Breakdown Insurance: Covers damage to compressors, paint ovens, hydraulic lifts, and other machinery due to mechanical breakdowns.
- Garage Keeper Liability: Covers damage to the customer’s vehicle while it is in the workshop.
- Public Liability Insurance: If damage occurs to a third party, whether a pedestrian, a neighbor’s workshop, or surrounding property.
- Stock and Spare Parts Coverage: Protects spare parts, paint, oil, tires, and stock assets from the risk of theft or fire.
- Business Interruption Insurance: Covers lost income when a workshop stops operating due to major losses.
All of the above protections should be tailored to your needs. Therefore, the role of an insurance broker is crucial.
Why Workshop Insurance Coverage Should Be Custom Designed
The risk structure of each repair shop is never the same. A body repair shop has a different risk profile than a mechanic shop. A large workshop with a paint oven has different risks than a custom shop. Therefore, using a general policy often leads to underinsuring.
Insurance brokers do things that direct insurance companies cannot do, namely:
- Conduct field risk analysis.
- Designing comprehensive protection structures.
- Determine the ideal coverage limit.
- Place the policy with the best insurance company.
- Ensure the policy covers important clauses such as Riot, Strike, Malicious Damage, Earthquake, Flood, and Machinery Breakdown.
Special protection can only be designed through the role of a professional broker who understands the industry in depth.
Examples of Major Cases That Have Occurred in Indonesia
1. Workshop Fire in Makassar (2024)
A luxury car custom workshop caught fire during the paint mixing process. A small explosion destroyed three modified cars. The workshop owner was forced to cover losses exceeding Rp 8 billion because his policy did not cover property damage caused by chemicals.
2. Damage to Customer Cars in Surabaya
A repair shop lost its reputation after a customer’s Mercedes-Benz was damaged during a test drive. The repair shop’s insurance policy did not cover Garage Keeper Liability. The repair shop owner was forced to pay compensation of up to Rp 700 million.
These two examples show that without proper protection, a single incident can cause a repair shop to close permanently.
The Irreplaceable Role of an Insurance Broker
Many repair shop owners do not understand that purchasing a policy directly from an insurance company often results in:
- underinsured
- the policy does not cover important clauses
- the guarantee limit is too small
- claim difficulties
An insurance broker represents the customer, not the insurance company. Their job is to protect the interests of the repair shop owner, not to sell products. Brokers perform risk assessments, design coverage, place claims, and assist with claims processing until payment is made.
This is the biggest difference between buying a policy directly and using a broker.
L&G Insurance Broker’s Advantages in the Workshop and Automotive Industry
L&G Insurance Broker has experience handling a wide range of industry risks, including automotive workshops, manufacturing, and large industrial companies like the Danantara Group. For over 30 years, L&G has helped resolve major claims, ensuring that clients’ businesses are not disrupted by unforeseen events.
Not only that, L&G ensures that every policy is placed with the best insurance and reinsurance companies, so that the protection provided is truly strong and not just a formality.
Before unwanted risks occur, make sure that your workshop has the right, complete, and professionally designed insurance protection.
For free consultation assistance, Contact L&G Insurance Broker now on 08118507773 for a free consultation with our experts, before risking stopping your workshop operations.
Conclusion
The workshop fire in Bandung serves as a stark reminder that the workshop industry is a high-risk business. The potential losses include not only physical damage but also reputation, customer trust, and business continuity. Therefore, workshop insurance coverage must be thoughtfully designed, precise, and tailored to operational risks.
With the help of an insurance broker, repair shop owners can obtain the most appropriate coverage, competitive premiums, and comprehensive support when a claim arises. The right partner can be the difference between rebounding or closing permanently after a disaster.
Through a sound risk management approach and the selection of quality protection, workshops can operate with peace of mind, focus on service, and avoid the threat of significant losses. To ensure all these aspects are protected, the safest and most efficient way is to partner with L&G Insurance Broker as your workshop’s risk and protection partner.
Source:
- https://bandung.kompas.com/read/2025/08/28/204419978/kebakaran-bengkel-dan-toko-mebel-di-bandung-hanguskan-21-kendaraan?page=all
- https://news.republika.co.id/berita/t1peer377/kebakaran-bengkel-di-bandung-puluhan-mobil-ludes-terbakar
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