Workshop business insurance is a form of protection that is often not fully understood by business owners, even though workshop business risks Risks are very high and can occur at any time. These range from fires and thefts to workplace accidents, damage to customer vehicles, and even lawsuits. These risks are not theoretical but real-life occurrences that cause billions of rupiah in losses to repair shops across Indonesia each year.
As professional insurance brokers, we see that the majority of major losses in the repair shop industry could have been prevented or mitigated if business owners had the right protection. Unfortunately, many repair shops still lack insurance or purchase the wrong policies due to lack of expert guidance.
To ensure your business is properly protected, L&G Insurance Broker, an official OJK-registered insurance broker, provides free consultation services for workshop owners.
📞Free Consultation with L&G Insurance Broker via:
Email halo@lngrisk.co.id
This article will discuss the five biggest risks that most often occur in repair shops and how to overcome them with the right insurance support.
Risk 1: Workshop Fire
Fire is workshop business risks The largest and most frequent fire hazards. Workshop environments are filled with fire-causing agents: oil, gasoline, thinner, spray paint, batteries, gas cylinders, and work processes such as welding or vehicle testing.
Even a small mistake, such as an electrical short circuit or a spark when starting a vehicle, can trigger a major fire that destroys the entire building.
The disadvantages include:
- workshop building and roof
- tools and machines
- spare parts stock
- cash
- operational documents
- customer vehicles
In many cases, total losses even reach billions of rupiah in a matter of minutes.
How to Cope with Insurance
Use Property All Risk (PAR) or Industrial All Risk (IAR) to protect:
- building
- equipment
- stock
- workshop contents
This policy covers losses resulting from fire, explosions, short circuits, and fire-related damage. Without this policy, the workshop owner would be responsible for the losses themselves.
Risk 2: Damage to Customer Vehicles
The repair shop is responsible for the customer’s vehicle from the moment it arrives until it leaves. Common risks include:
- car or motorbike caught fire during testing
- vehicle fell from lift
- the car was grazed or hit while being moved
- incorrect installation of spare parts causes major damage
One car unit alone can be worth hundreds of millions, especially if it is a premium car.
How to Cope with Insurance
Use Garage Keeper Liability (GKL).
This policy is very important because it covers:
- customer vehicle damage
- lost vehicle
- vehicle fire during repairs
- damage due to mechanical negligence
Unfortunately, many workshops don’t have GKL because they don’t know about it or haven’t been briefed by their insurance agents. Yet this risk is very common and significant.
Risk 3: Theft of Assets and Spare Parts
The workshop has high-value assets, such as:
- quality oil
- in premium
- ECU
- tools mahal
- special machines
- motorcycle and car accessories
These types of valuable items are often targets for theft, both by outsiders and internal elements.
The risk is greater if:
- the workshop does not have CCTV
- The fence is not secure.
- warehouses are not strictly controlled
How to Cope with Insurance
Use Burglary & Theft Insurance which covers losses due to theft with violence or damage.
If you want wider coverage, combine with:
- Money Insurance
- Fidelity Guarantee (FG) for internal theft
Risk 4: Mechanical Work Accidents
Mechanical work carries a high level of physical risk. Common risks include:
- Burns
- hit by a vehicle
- exploding work tools
- squeezedlifter
- exposed to sparks while welding
- fall from a height
In addition to the risk of injury, there are legal obligations companies have to workers.
How to Cope with Insurance
Workshops must have:
- BPJS Employment
- Personal Accident Insurance for additional protection
- Employer’s Liability (EL) to cover workers’ legal claims
With this policy, employers do not have to bear large medical costs or burdensome compensation.
Risk 5: Lawsuits from Customers
Customers can sue the repair shop if they feel they have been harmed, such as:
- the car was damaged after leaving the repair shop
- wrong repair results
- service does not comply with SOP
- the workshop damaged other components
- misdiagnosis
In some cases, customers report the repair shop legally or demand compensation, the amount of which can be very large.
How to Cope with Insurance
Use Public Liability Insurance and Professional Liability to:
- third party claims
- damage to other people’s assets
- customer injury
- damage due to technical negligence
This policy provides peace of mind for entrepreneurs so they don’t panic when facing complaints or lawsuits.
Types of Insurance that Workshops Must Have
To protect your business from all risks, here is the most ideal product combination:
- Property/Industrial All Risk (PAR/IAR)
Protect the building and workshop contents.
- Garage Keeper Liability
Protecting customer vehicles.
- Public Liability
Protects against third party claims.
- Business Interruption Insurance
Protects against losses due to business interruption following fire or major damage.
- Burglary & Theft Insurance
Protect valuables in the workshop.
- Personal Accident & Employer’s Liability
Protecting workers and the company’s legal liability.
All these types of insurance prove vital in the repair shop business.
The Role of Official Insurance Brokers (OJK) in Protecting Workshop Businesses
Many garage owners purchase policies directly from insurance companies or agents, but don’t fully understand the policy’s terms. As a result:
- many risks are not covered
- claim rejected due to wrong policy type
- sum insured less
- exception not read
- the policy does not meet the workshop’s needs
This is where the role of an authorized insurance broker such as L&G Insurance Broker becomes very important.
As an OJK registered broker, L&G provides:
- complete risk assessment
- policy recommendations according to workshop needs
- best premium negotiation with insurance companies
- claims assistance from start to disbursement
- business risk education and mitigation
With a broker, workshop owners no longer buy insurance “just for the sake of it,” but have protection that truly matches the risks in the field.
Cover
Workshop business risks Risks are no longer something to be taken lightly. Fire, theft, damage to customer vehicles, workplace accidents, and even lawsuits can deplete business capital or even halt operations entirely. Therefore, garage business insurance is a necessity, not an option.
To ensure your workshop is properly protected, don’t purchase a policy on your own without assistance. Ensure you get the right protection through an OJK-registered insurance broker.
Protect your business, protect your employees, and protect your customers’ vehicles with L&G Insurance Broker.
📞Free Consultation with L&G Insurance Broker via:
Whatsapp : 08118507773
Email : halo@lngrisk.co.id
