Business in Bali is Booming — But Legal Risks Are Rising
Bali is not only a world tourist center, but also home to thousands of commercial and service businesses:
hotels, villas, restaurants, cafes, bars, salons, spas, event providers, to digital consultants and startups.
The expansion of the tourism and lifestyle sectors has encouraged the emergence of many new business actors.
However, amidst this growth, legal risks and customer demands have also increased sharply.
Real example:
- A guest slipped in the hotel area and suffered serious injuries,
- Restaurant visitors get food poisoning,
- The festival event was suddenly cancelled and caused losses to third parties,
- Architectural consultant sued for project design errors,
- Beauty salon faces lawsuit over customer’s allergic reaction.
In cases like this, companies can be sued for hundreds of millions to billions of rupiah in damages, including legal fees, compensation, and fines.
This is where liability insurance comes into play to save your business — and to ensure the best protection, use a licensed insurance broker like L&G Insurance Broker.
What is Liability Insurance?
Liability insurance is protection against legal risks and third-party claims resulting from negligence, accidents, or damage that occurs in your business activities.
This policeman bears:
- Compensation costs to victims,
- Legal & attorney fees,
- Expenditure on investigations and dispute resolution,
- As well as fines according to the provisions in the policy.
This means that when a legal claim occurs, you don’t have to pay a large amount from the company’s cash.
Good insurance will cover all costs within the limit of liability.
Why Businesses in Bali Really Need Liability Protection
Bali is an international destination with tourists from various countries.
This means that safety standards and service expectations are extremely high — and small violations can result in large lawsuits.
For example:
- A foreign tourist at a hotel had a minor accident and then filed a claim for hundreds of millions in medical costs at an international hospital.
- Restaurant in Canggu gets sued for food causing allergies,
- Spa in Seminyak sued over customer’s skin injuries,
- The event organizer consultant was asked for compensation due to the sudden event cancellation.
All these risks can be covered by the right Liability Insurance program, specifically designed for the tourism and service industry in Bali.
Recommended Types of Legal Liability Insurance
- Public Liability Insurance
Protects businesses from third-party claims for bodily injury or property damage on the business premises.
Example:
- A hotel guest slipped in the swimming pool and suffered injuries.
- Medical costs of IDR 200 million and legal compensation are covered by insurance.
- Estimated premium: 0.1% – 0.3% of the annual coverage limit.
- Product Liability Insurance
Suitable for restaurants, bars, food, cosmetics or beverage manufacturers.
Cover claims resulting from products that cause losses to consumers.
Example:
- Seafood restaurant customers in Jimbaran experienced food poisoning.
- The Product Liability Policy covers medical expenses and compensation of IDR 350 million.
- Event Liability Insurance
Especially for event organizers, wedding planners, EO, and music festivals.
Cover the risk of damage, event cancellation, or participant injury.
Example:
A concert in Ubud was canceled due to extreme weather, resulting in a large refund claim. The policy covered losses of up to Rp1 billion.
- Professional Indemnity Insurance (PI)
Protecting professionals such as consultants, architects, accountants, IT developers, and lawyers from claims resulting from professional misconduct (negligence).
Example:
- The interior design consultant miscalculated the structure and was sued for Rp. 500 million by the client.
- The PI policy covers compensation and legal costs.
- Employer’s Liability Insurance
Bearing the company’s legal responsibility for employees who suffer work-related injuries or illnesses.
- Commercial General Liability (CGL)
Comprehensive protection for large businesses such as 5-star hotels, malls, resorts, or multinational service companies.
Combining multiple coverages into one large policy.
Estimated premium: 0.15% – 0.35% of the total annual limit.
L&G Insurance Broker: Liability Insurance Experts in Bali
As an OJK licensed insurance broker and member of APPARINDO,
L&G Insurance Broker has over 30 years of experience in handling liability risks for various industries, including:
- Hotel & villa,
- Restaurants, bars and beach clubs,
- Event organizer & wedding planner,
- Spa & beauty salon,
- Professional consultant & service company.
L&G assists clients through a comprehensive risk management approach:
✅Analysis of potential legal risks based on business type,
✅Proper policy design and limits of liability,
✅Competitive premium negotiations with many insurance companies (Chubb, Allianz, Zurich, Sompo, Tugu, etc.),
✅Full assistance in the claims process until completion.
🎯“L&G is not just about selling policies, but about ensuring your business is protected from lawsuits that can destroy your reputation and finances.”
Real Case Examples
Case 1 – Spa in Seminyak
A foreign tourist experienced skin irritation after treatment.
The broker’s Public Liability Policy covers Rp180 million in compensation and legal fees.
Case 2 – Restaurant in Ubud
Food poisoning caused 3 customers to be treated.
Product Liability Insurance covers all medical costs and compensation of IDR 320 million.
Case 3 – Event in Canggu
The outdoor event was cancelled due to a major storm, leading to claims for sponsor refunds.
The Event Liability Policy covers losses of up to IDR 1.4 billion.
Liability Insurance Premium Estimation
Types of Insurance Premium Estimate Information
| Public Liability | 0.1% – 0.3% of the limit | For hotels, spas, restaurants |
| Product Liability | 0.15% – 0.4% of the limit | For food, drinks, cosmetics |
| Professional Indemnity | 0.25% – 0.5% of the annual fee | For consultants & professionals |
| Event Liability | 0.3% – 0.6% of the event contract value | EO & wedding planner |
| Employer’s Liability | 0.2% – 0.5% of total salary | For businesses with multiple staff |
| Commercial General Liability | 0.15% – 0.35% of the limit | For large and complex businesses |
Benefits of Using an Authorized Insurance Broker Like L&G
🔹Free risk consultation — understand your unique business risks in Bali.
🔹Comparison of policies from many insurance companies.
🔹Negotiate the best premiums at no additional cost.
🔹Fast and professional claims assistance.
🔹Officially registered with OJK and a member of APPARINDO.
Don’t be tempted to buy insurance directly or through an unlicensed agent.
Use a reputable broker like L&G to ensure your interests are truly protected.
L&G Insurance Broker Tips for Commercial Business Owners in Bali
✅Make sure your business has a minimum Public Liability of IDR 1–5 billion.
✅For restaurants & spas, add Product Liability for customer safety.
✅For consultants & professionals, it is mandatory to have Professional Indemnity Insurance.
✅Always review your policy annually as risks can change.
✅Record all incidents, no matter how small, to facilitate the claims process.
Conclusion: Protect Your Business from Legal Risks Now
In today’s increasingly open business world, one small mistake can lead to a major lawsuit.
Without proper liability insurance protection, a company’s reputation and finances can be destroyed in an instant.
Through L&G Insurance Broker, you get professional protection from the best insurance companies, with efficient premium costs and full assistance in every claims process.
⚖️“With L&G, you’re not just buying insurance — you’re buying peace of mind, confidence and real legal protection.”
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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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