When Natural Disasters Test Bogor’s Tourism Business
The Puncak, Cisarua, and Cipanas areas in Bogor and Cianjur Regencies are known as favorite tourist destinations for thousands of tourists from Greater Jakarta (Jabodetabek). Hotels, villas, and resorts have sprung up along the Puncak route. However, this beautiful area is also prone to natural disasters, particularly earthquakes and landslides.
When disaster strikes, hoteliers often realize their insurance policies don’t cover earthquakes. This is a common source of frustration:
“We already have comprehensive property insurance, but why was the claim rejected when the building was damaged by the earthquake?”
Cases like this have befallen many tourism business owners in the Bogor area and its surroundings. They feel they are protected, but in fact, that protection doesn’t cover the natural risks most relevant to the region.
It’s time for businesses in the hotel and tourism sectors to understand the importance of proper policy design — and this is where L&G Insurance Broker comes to the rescue.
Hotels in Puncak Whose Claims Failed to Be Disbursed
Some time ago, a resort hotel in the Puncak area experienced severe cracks in several parts of its building after an earthquake with a magnitude of 5.6 which was centered in Cianjur.
The main walls were cracked, the roof partially collapsed, and several rooms were rendered unusable. Losses were estimated at Rp 4 billion.
But when the hotel owner filed a claim with the insurance company, the answer was surprising:
“Sorry, your policy does not cover earthquakes. Damage due to tectonic activity is not covered.”
The hotel owners were shocked. They thought they had Property All Risks (PAR) coverage, which covered all risks. However, the policy contained specific exclusions for natural disasters such as earthquakes, tsunamis, and volcanic eruptions.
Ultimately, the claim could not be paid, and the owner had to bear the cost of major repairs himself.
This mistake is not because the insurance company is fraudulent, but because no professional explained the contents of the policy in depth before purchase.
Common Insurance Issues for the Hotel and Tourism Sector in Bogor
The above cases are not uncommon. Based on the experience of PT. Liberty and General Insurance Broker (L&G), which has assisted numerous clients in Bogor and Puncak, the following are the most common issues:
- Police Exclude Risks of Earthquakes and Volcanic Eruptions
Many hoteliers purchase a “Property All Risks” policy with the assumption that “everything is covered.”
In practice, however, insurance only covers risks that are not explicitly excluded.
And unfortunately, the risk of earthquakes and volcanic eruptions is always excluded, unless a special clause is added: “Earthquake, Volcanic Eruption, and Tsunami Extension (EVET)”.
Without this additional clause, earthquake damage would never be covered, regardless of the premium paid.
- No Location Risk Analysis
Many hotels and resorts are built on slopes or steeply contoured land.
However, before purchasing insurance, no professional risk assessment or site survey was ever carried out.
As a result, when a disaster occurs, insurance companies can reject claims on the grounds that “the ground conditions were unstable from the start” or “it did not meet construction standards.”
With the help of a broker like L&G, a risk survey will be conducted before the policy is issued, so that all potential risks can be taken into account and covered fairly.
- Misjudging the Value of Buildings and Contents
Some hotel owners only insure the value of the building, without including interior facilities, furniture, or hotel equipment such as boilers, air conditioning, or generators.
In fact, these components also experienced damage during the earthquake.
When a claim is filed, the insurance company only pays for the damage to the building structure, not the entire hotel asset.
Claims are far from expectations.
- Not Having Business Interruption Insurance
After the disaster, the hotel was unable to operate for months.
Revenue stops, but employee salaries and fixed costs (such as electricity and security) still have to be paid.
Without Business Interruption (BI) insurance, all financial losses due to operational interruption will not be replaced.
Many entrepreneurs only realize this when it is too late.
- No Assistance During Claims
When a disaster strikes, hotel managers panic. They immediately report it to their insurance company, but they don’t know how to properly file a loss report.
Late documents, unclear chronology, or communication with loss adjuster ineffective.
Ultimately, the claim was deemed invalid.
With a broker like L&G, the entire claims process will be handled with professional strategy and experience so that clients’ rights are not lost.
The Role of L&G Insurance Broker in Protecting Hotel and Tourism Businesses in Bogor
As an independent insurance broker with over three decades of experience, PT. Liberty and General Insurance Broker (L&G) understands the complexities of the tourism business in the Bogor, Puncak, and Cianjur areas.
Here are L&G’s concrete roles in helping clients in this sector:
- Risk Survey and Location Evaluation
L&G will conduct an on-site visit to the hotel or resort, assessing the building structure, drainage system, distance to natural hazards, and security facilities.
Based on the analysis, the broker will provide recommendations for the appropriate policy type and risk coverage — including earthquake, flood, and landslide coverage.
- Design a Special Insurance Program for Hotels
Every business has unique risks. For hotels and resorts in Bogor, L&G typically recommends a combination of:
- Property All Risks (PAR)
→ Protecting buildings and their contents from various physical risks. - Earthquake & Volcanic Eruption Extension (EVET)
→ Covers damage due to earthquakes and volcanic eruptions. - Business Interruption (BI)
→ Replace lost revenue due to operational disruptions. - Public Liability (PL)
→ Protects against lawsuits from guests or third parties. - Employer’s Liability
→ Protects legal liability for employees injured at work.
With this combination, the hotel business is protected completely, not half-heartedly.
- Negotiation with Insurance Company
Because L&G is an independent broker, they are not tied to any one insurance company.
They can negotiate competitive premiums and the most favorable policy terms for clients from various well-known companies, such as Astra Insurance, Tokio Marine, Sompo, MSIG, and others.
- Annual Monitoring and Review
Every year, hotel conditions can change — adding new buildings, updating facilities, or increasing guest capacity.
L&G will review the sum insured and risk recommendations to ensure protection remains relevant.
- Assistance During Claims
This is the most crucial role.
When a disaster occurs, the L&G claims team will:
- Assist in preparing loss reports,
- Coordinate loss adjuster And insurer,
- Ensure complete and valid documentation,
- Negotiate claim results to get maximum and fast payment.
L&G is not just a policy seller, but a true companion when clients need it most.
Case Study: Successful Claim After L&G Assistance
One of L&G’s clients, a resort in Megamendung, experienced a landslide in its parking area after heavy rain and a small earthquake rocked the area.
Initially, the claim was rejected because it was considered an “uninsured natural disaster.”
However, the L&G team looked into the policy and found that there were still valid flood and landslide endorsements.
With strong arguments and technical evidence, L&G submit reclaim officially.
The result? The Rp 1.2 billion claim was finally approved and paid in full.
The client acknowledged that, without the broker’s assistance, the claim might have been closed forever.
Lessons for Hotel and Tourism Business Actors in Bogor
From the various cases above, there are several important lessons that every hotel, villa, or resort owner in Bogor and its surroundings should remember:
- Don’t just buy insurance, understand what is covered and excluded.
- Make sure the policy covers local risks, such as earthquakes, floods, and landslides.
- Use the services of a professional broker who understands the ins and outs of tourism risks.
- Evaluate the insurance value every year to avoid being underinsured.
- Have an emergency claim plan so that when disaster strikes, your steps are appropriate and quick.
Why Choose L&G Insurance Broker?
- ✅More than 30 years of experience in commercial, industrial and tourism insurance.
- ✅Have a technical and claims team trained to handle complex cases.
- ✅Working with dozens of national and international insurance companies.
- ✅Focus on client interests and protection, not insurance.
- ✅Able to negotiate the best premiums and clauses according to business needs.
Conclusion: Protect Your Business Before the Next Earthquake
Natural disasters are unpredictable. But their impact can be minimized if your business has the right insurance protection and is overseen by a professional broker.
For hotel, villa and tourism business owners in Bogor and Puncak, don’t repeat the same mistake as many other business owners: buying a policy without understanding its contents.
With guidance from PT. Liberty and General Insurance Broker (L&G), you’re not just purchasing a policy, but building a real business protection strategy.
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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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