The tragedy of the KM Pacific 88 ship listing at Tanjung Perak Port, Surabaya, in early February 2026, served as a grim reminder of the high operational risks in the maritime sector. The incident, which caused stacks of containers to collapse, some falling into the sea, and claimed the life of a surveyor, not only resulted in massive material losses for the cargo owner but also triggered…complicationsLegal challenges for terminal operators. The risks of freight insurance, damage to physical assets, and even legal liability for loss of life are real threats that can cripple a company’s financial stability in an instant.
This article examines port operational risks from an insurance perspective and why Marine Cargo and Port Liability coverage are crucial business lifelines. As the industry’s risk management partner, L&G Insurance Broker is here to ensure every inch of your assets and legal liabilities are fully protected. Given the significant financial and reputational impact following a tragic incident like this, it’s crucial to have an expertly designed protection strategy. Contact L&G Insurance Broker now on 08118507773 for consultation with our experts.
Chronology of the KM Pacific 88 Tragedy in Tanjung Perak: Real Risk Analysis
According to reports from various national news sources, the KM Pacific 88 experienced a severe tilt while docked at Mirah Pier, Tanjung Perak Port. An imbalance in the load, or a malfunction in the ship’s stability, caused the loaded containers to collapse. Several containers plunged into the sea, while others collapsed onto the operational area on board.
The tragedy became even more devastating when a single fatality was reported—a surveyor trapped under the wreckage of a container. The search operation, involving Basarnas (National Search and Rescue Agency) and a joint team, highlighted the difficulty of evacuation in the treacherous terrain. For the industrial world, this incident represents a clear example of Total Loss, which includes:
- Worker Deaths: Legal risks and corporate social responsibility.
- Cargo Damage: Loss of economic value of stock in transit.
- Ship and Infrastructure Damage: Physical loss to maritime property assets.
Port Operational Risk: Why Are Zero Accidents So Hard to Achieve?
Loading and unloading activities are the most critical point in the global supply chain. In the case of the KM Pacific 88, the factors that caused the ship to tilt and the containers to fall could have varied, ranging from errors in weight distribution, heavy equipment failure, to unpredictable weather or sea currents.
Any container that falls into the sea carries the risk of environmental pollution if its contents contain chemicals or hazardous waste. Furthermore, the cost of removing the container from the seabed (wreck removal) is extremely expensive. Without cargo insurance coverage that includes an extension clause, cargo owners are left to bear the costs of losses resulting from destroyed or submerged cargo.
Understanding that a single moment of negligence or equipment malfunction can destroy a reputation and years of built-up capital is the first step for entrepreneurs to consider more serious protection. Before your business operations are halted by lawsuits or unpaid property damage claims, it’s wise to review every clause in your policy.
Mandatory Protection Types: Marine Cargo and Freight Insurance
For goods owners, having marine cargo insurance is essential. In a tragedy like the one in Tanjung Perak, this insurance serves to guarantee:
- Physical Damage: Compensation for the contents of a container that is destroyed due to falling or being crushed.
- General Average: The owner’s obligation to contribute if the ship’s captain must take emergency action to save the entire ship.
- Total Loss: Full replacement if goods are lost at sea and cannot be recovered.
L&G Insurance Broker recommends the use of Institute Cargo Clauses (A), which provide the broadest coverage against accident risks during the loading and unloading process, including while the container is still on the dock before being boarded.
Port & Terminal Liability: Protection for Operators and Managers
The KM Pacific 88 tragedy also highlighted the vulnerability of port management. If negligence in loading and unloading procedures is proven, resulting in the ship tilting or containers falling, the terminal operator will face legal action from various parties, including the ship owner, cargo owners, and the victims’ families.
Port & Terminal Liability policies are designed to cover this legal liability risk, including the often-expensive legal defense costs. As an insurance broker, L&G ensures that this coverage also covers the risk of marine pollution resulting from cargo falling into port waters.
Legal Responsibility for Casualties: Work Accident Insurance
The loss of a worker’s life is the most serious moral and legal risk. Although companies are required to enroll workers in BPJS Ketenagakerjaan (Employment Social Security) insurance, the compensation is often insufficient to cover additional lawsuits from the victim’s family or to compensate for workplace safety negligence.
Employer’s Liability and Workers’ Compensation are essential additional layers of protection. These policies protect companies from claims for damages exceeding standard government benefits, ensuring that companies don’t go bankrupt due to having to pay court-ordered death benefits.
Ensuring employee well-being while protecting the company’s balance sheet are two sides of the same coin that every logistics industry leader must carefully manage. Given the complexity of maritime regulations and the strict oversight of port authorities, you need a partner who not only provides policies but also acts as a risk consultant who understands the intricacies of on-the-ground operations.
Post-Incident Economic Domino Effect: Business Interruption
When the ship tilted and containers fell into the sea, the Mirah Pier in Tanjung Perak experienced operational disruptions. The evacuation of the containers and the authorities’ investigation took days. During this time, the terminal was unable to serve other vessels, and cargo owners experienced distribution delays, resulting in commercial losses.
Property insurance that includes Business Interruption (BI) coverage will compensate for lost revenue or additional costs arising from the disruption of port or factory operations that depend on the cargo. Insurance brokers will help calculate an accurate Indemnity Period to ensure the company maintains cash flow even if operations are disrupted.
Why L&G Insurance Broker Is Your Strategic Partner?
As an insurance broker specializing in industrial and maritime risks, L&G provides added value that ordinary agents do not:
- Technical Analysis: We delve into the chronology of tragedies like the one in Tanjung Perak to ensure your policy covers similar scenarios.
- Policy Wording Audit: We dissect your Marine Cargo contract to ensure there are no exceptions during the Loading/Unloading process.
- Claims Advocacy: When a major disaster occurs, our team will accompany the Loss Adjuster’s investigation to ensure your rights are paid fairly and quickly.
- Broad Market Access: We partner with Tier 1 insurance companies (national and international) to get competitive premium offers but with broad coverage.
Mitigation Steps: Learning from Mistakes
The KM Pacific 88 tragedy should encourage every company to conduct a risk audit:
- Cargo Stability Audit: Ensures weight and balance calculation procedures before the ship departs.
- Lifting Equipment Certification: Ensures that cranes and steel slings are in prime condition and have a certificate of suitability.
- Port HSE: Tightening the safe distance for surveyors and ground personnel while cranes are operating.
The steps above will make it easier for us as brokers to negotiate premium discounts with insurance companies because your operations are considered well-managed risk.
Conclusion
The tragedy of the container collapse at Tanjung Perak, which claimed lives, is a wake-up call for the entire Indonesian logistics ecosystem. Physical risks to cargo, asset damage, and even human life must be covered by legal and comprehensive insurance instruments.
By having the right cargo, property, and liability insurance, you not only comply with the law but also provide security for the future of your company, employees, and all your business partners. Don’t let your hard work be ruined by a single accident that could have been financially mitigated.
Secure your operations and supply chain today with proven risk management experts. Contact L&G Insurance Broker now on 08118507773 for consultation with our experts and ensure every container and the lives of workers in your operations are protected by best-in-class insurance standards.
Source:
- https://www.kompas.tv/regional/648108/peti-kemas-roboh-hingga-jatuh-ke-laut-saat-bongkar-muat-1-orang-tewas-sapa-pagi
- https://www.infonasional.com/pelindo-investigasi-jatuhnya-peti-kemas
- https://mitrapost.com/2026/02/03/1-pekerja-tewas-pelabuhan-tanjung-perak/
- https://daerah.tvrinews.com/en/berita/tiq3o94-kapal-pacific-88-miring-di-tanjung-perak-satu-pekerja-tewas
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Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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