Risks are inherent in every business and industry. However, one category of risk is particularly dangerous because it involves external parties: third-party legal liability (Public Liability). Public Liability insurance serves as a financial shield when your company’s operations cause injury or property damage to others—from customers slipping in a store to infrastructure damage caused by a construction project.
Renewing public liability insurance is crucial. Delays in renewing public liability insurance can completely void your coverage, leaving your company open to costly lawsuits. We, L&G Insurance Broker, located in South Tangerang, are here to transform this risk into guaranteed protection.
Public Liability Insurance is a legal requirement with zero tolerance for delays. Delays in renewing public liability insurance will trigger a coverage lapse, meaning the company must cover all legal costs and compensation out of pocket, a risk that can reach billions of rupiah. To ensure continuity of coverage, adequate limits, and risk-appropriate wording, companies must partner with an expert insurance broker. L&G Insurance Broker is ready to be your risk compliance partner.Therefore, don’t let your risks go unmanaged professionally Contact L&G Insurance Broker now in 08118507773 for consultation with our experts.
Public Liability Renewal Deadline: A Double Threat of Legal Risk
Public Liability (PL) protects a company from legal liability for accidental losses suffered by third parties as a result of your business activities.
Examples of Cases Covered by Public Liability:
- Retail/Service Sector: A customer slips and breaks a bone in your store (slip-and-fall).
- Construction/Factory Sector: Project materials falling onto residents’ cars, or noise pollution triggering lawsuits.
- Hotel/Property Sector: Hotel guests injured due to damaged facilities.
Without active renewal public liability insurance, the company must cover the following costs from cash flow: attorney fees, court costs, and compensation funds determined by the court.
The Fatal Risk of Violating the Public Liability Renewal Deadline
Renewal public liability insurance carries different risks than property insurance. Many PL policies operate on a claims-made basis (similar to PI insurance).
Risk of Delay in Renewal of Public Liability Insurance:
- Interrupted Claims Made: If an incident occurs while the policy is active, but a lawsuit is filed after the policy lapses, the insurance company may deny the claim. Timely renewal ensures continued coverage for future claims.
- Missing Retroactive Date: Like PI Insurance, Insurance Brokers are required to monitor the retroactive date of PL policies. If public liability insurance renewals are delayed, the company loses coverage for past risks that are only claimed today.
- Legal Defense Costs: Legal fees for liability cases can reach tens to hundreds of millions of rupiah. Delays in renewing public liability insurance force companies to pay these costs in full, even if they win in court.
Legal and Financial Consequences of Delays in Renewing Public Liability Insurance
When the extension of public liability insurance fails, the legal risk faced by the company becomes unlimited liability.
- Company Assets at Risk: If a company is sentenced to pay billions in compensation (for example, a claim resulting from a fatal accident at a construction site), the company’s assets may be seized or auctioned off to cover the losses.
- Protracted Lawsuits: Without an insurance broker and insurance company on your side, your company must manage the entire legal process on its own. These lawsuits can be time-consuming and costly.
- Contract Penalties: Many large project contracts require subcontractors to have active public liability insurance. Failure to renew public liability insurance can lead to contract cancellation or penalties.
Reputational and Operational Losses Due to Delays in Renewal of Public Liability Insurance
Corporate risks lie not only financially, but also in reputation. These include:
- Loss of Public Trust: Uninsured legal cases resulting in significant losses damage a company’s image in the public eye. The company is perceived as negligent and irresponsible.
- Operational Disruption: Company resources (CEO, Legal, Finance) are forced to focus on litigation instead of core business, leading to operational disruption and lost revenue.
- Future Premium Increases: If a company has experienced a large claim without insurance, future public liability insurance premiums will increase drastically, as the company is considered high risk.
Case Studies and Risks Per Industry Without Renewal Public Liability Insurance
Case Study: Building Contractor and Structural Collapse Claim
A construction company in South Tangerang delayed renewing its public liability insurance for 15 days due to internal administrative issues. During the lapse, their project caused structural damage to a neighboring building. The neighbor filed a third-party property damage claim for Rp 3.5 billion.
Due to late public liability insurance renewals, the policyholder refused to cover the claim. The company was forced to sell assets to cover compensation and legal fees. L&G Insurance Brokers ensures your public liability insurance renewal is processed 90 days before the deadline.
The Importance of Insurance Brokers in Securing Renewal Public Liability Insurance
Each industry has unique public liability risks that only an Insurance Broker can identify:
- Property Companies/Developers: Require renewal of public liability insurance that covers the risk of design defects or structural failure after handover (Completed Operations Liability).
- Manufacturing Sector: Public Liability should be extended to Products Liability for the risk of damage or injury caused by products already sold to the market.
- Services/Consultation: Renewal public liability insurance must be combined with PI (Professional Indemnity) Insurance to protect against double risks (physical and professional).
If your business is at risk of endless lawsuits, why risk it with late renewals? An insurance broker is an investment that safeguards your financial security.
L&G Insurance Broker’s Proactive Strategy in Renewal Public Liability
L&G Insurance Broker ensures your public liability insurance renewal is efficient and claims-free:
- Risk Exposure Analysis: We identify your company’s specific public liability risks (e.g., hot-works risks in construction) to ensure the policy covers all risks.
- Limit Negotiation: We recommend realistic public liability insurance limits (often higher than those suggested by direct insurance companies) to protect company assets from claims worth billions.
- GOC Wording: We guarantee that your public liability insurance renewal includes a guarantee continuity of coverage (GOC) to protect against risks that occurred in the past that are only claimed today.
Continuity Assurance and Regulatory Compliance for Renewal Public Liability
L&G Insurance Broker manages administrative risks so you can focus on your core business:
- 90-Day Monitoring: We begin the public liability insurance renewal process 90 days before the deadline, allowing ample time for internal negotiations and approvals.
- Market Benchmarking: We compare rates from various insurance companies to find the most competitive premiums and best wording in the liability insurance market.
- Claims Assistance: We negotiate with your loss adjuster, ensuring every claim is handled professionally and paid in full.
Cover
Renewing public liability insurance is a priority that cannot be postponed. Delays in renewing public liability insurance can be devastating to your business due to the unlimited legal risks it faces. A break in coverage means the company must cover billions of rupiah in legal fees and compensation for third-party losses from its own cash flow. Inactive public liability insurance will damage your company’s assets, reputation, and operational sustainability.
L&G Insurance Broker from South Tangerang is a strategic partner that ensures the safe renewal of your public liability insurance. We eliminate the risk of lapse with 90-day monitoring and ensure your policy is drafted with robust wording, covering all your specific risks (including product and operational risks). We protect your company’s assets from inevitable lawsuits.
Don’t let the risk of unlimited public liability threaten your business. An insurance broker is an investment that guarantees your financial security Contact L&G Insurance Broker now in 08118507773 to consult with our experts and secure your public liability insurance renewal before the risk becomes a devastating lawsuit.
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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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