In the business world, risks can arise at any time and are unpredictable. From minor accidents in the workplace to accidental damage to third-party property, to lawsuits due to negligence—all can result in significant losses. Therefore, simply having an insurance policy is not enough. It’s more important to ensure it’s always active and not renewed late. A lapsed policy, even for just one day, means the company has no protection at all.
Unfortunately, many companies take the renewal process for granted. They’re busy with operations and feel like “nothing’s happened,” so they often miss reminders from their brokers. However, risks often arise when coverage is inactive.
One real-life example occurred at a heavy equipment distribution company in Jakarta. They had a Third Party Liability (TPL) policy with a limit of Rp 1,000,000.billionTheir broker had sent a reminder 60 days before the due date, but because it wasn’t deemed urgent, the renewal was missed by five days. That same week, a forklift hit a supplier’s vehicle, causing Rp 185 million in damage. When the claim was filed, the insurer denied coverage because the policy was no longer active. Ultimately, the company covered the entire cost—a loss that could have been avoided.
To prevent this from happening, companies need brokers who are disciplined, proactive, and have a structured reminder system.L&G Insurance Broker is ready to help ensure all your policies are always active, renewed on time, and provide optimal protection for your business.
Why Can’t Police Renewal Be Ignored?
Policy renewal is a crucial part of risk management that often goes unnoticed. Many companies view the renewal process as an administrative matter that can be postponed, when in reality, even a day without an active policy means the company is operating without protection. Risk never waits, and a small incident can turn into a major loss when insurance coverage is no longer in effect.
1. Lapse Policy = Coverage Lost Completely
When the due date passes without renewal, the policy automatically lapses. There is no grace period. This means that the following day, all coverage ceases. If an incident occurs during the lapse period—even one day—no claim can be filed. This is the primary reason many companies suffer significant losses simply due to late policy renewals.
2. Very Large Financial Risk
Especially for policies like Third Party Liability (TPL), claim amounts can be extremely high. Even minor damage to a third-party vehicle can reach tens of millions of rupiah. If it involves significant injuries or property damage, the costs can reach hundreds of millions to billions. Without renewal, the company must cover all these costs from internal funds.
3. Updates Are a Moment of Risk Evaluation
Renewal isn’t just about extending a policy, but also an opportunity to review whether coverage and limits are still appropriate for current conditions. Over the course of a year, the number of employees may increase, assets may grow, or operational activities may expand. Without proper renewal, a company could find itself underinsured.
4. Business Compliance Obligations
Many business partnerships require an active policy as a compliance requirement. Lapsing due to late renewal can damage your reputation or even cancel the contract.
The Role of Insurance Brokers in Managing Policy Renewals
Policy renewal isn’t just about updating documents; it’s a process that requires thoroughness, monitoring, and ongoing communication. This is where the role of an insurance broker becomes crucial. Brokers act as liaisons, advisors, and guardians to ensure clients’ protection. With a proper management system, brokers ensure that no policies expire.
1. Proactive Police Time Monitoring
Insurance brokers have systems in place to track all client policy expiration dates. They ensure each policy is monitored well in advance, typically 60–90 days before its expiration. This monitoring allows brokers to anticipate delays and prepare for a more structured renewal process.
2. Send Periodic Reminders
One of a broker’s core responsibilities is to send out regular renewal reminders. These reminders are sent through various channels—email, WhatsApp, phone calls, and even official letters—to ensure that no messages are missed. Brokers understand that companies are busy with operations, so consistent reminders help prevent forgetting or delays in the renewal process.
3. Review Coverage and Protection Needs
Before renewal, the broker will evaluate whether the policy coverage still aligns with the company’s current situation. Are the limits still sufficient? Are there any new activities that increase risk? Have assets or contract values changed? All of this is analyzed to ensure the renewed policy provides optimal protection.
4. Negotiate Premiums and Policy Terms
Brokers are also responsible for negotiating with insurance companies to obtain competitive premiums and favorable policy terms for their clients. At renewal time, brokers often advocate for premium adjustments, extended coverage, or the removal of unnecessary clauses.
5. Provide Complete Documentation and Administration
All communication, application, and renewal documentation are handled by the broker, eliminating the hassle for the client. The broker ensures that the latest policy is issued on time and delivered in a complete manner.
How Do Insurance Brokers Proactively Remind Policy Renewals?
One of the greatest values of using the services of an insurance broker is the reminder mechanism.renewalor policy renewals that are much more systematic and proactive than if the company managed it themselves. Many businesses think they can remember policy expiration dates, but in reality, amidst the busyness of operations, renewal schedules often slip through the cracks. This is why the role of a broker is so crucial.
First, the broker implements an internal monitoring system. Each client’s policy is recorded in a database that automatically provides notifications several months before the expiration date. This ensures that policy renewals never come “suddenly.” Typically, clients receive an initial reminder 60–90 days before the policy expires, followed by additional reminders at 30 days, 14 days, and finally, the day itself. This tiered system ensures there’s no room for forgetfulness.
Second, in addition to automated reminders, brokers also conduct personal follow-up. The account management team will contact clients via email, WhatsApp, or phone to ensure all updates are clearly communicated. They will also provide an overview of the latest market conditions, rate changes, and recommendations to ensure limits and clauses remain relevant to current business risks.
Third, brokers assist companies in preparing renewal documents to ensure a quick and smooth process. This includes reviewing existing policies, updating asset values, and conducting the latest risk analysis—all to avoid gaps in coverage. When company operations change (e.g., new projects, additional equipment, or work area expansion), the broker will integrate these into the policy renewal to ensure comprehensive coverage.
With this proactive reminder and support system, brokers ensure clients not only remember the renewal schedule but also understand its urgency and benefits. Ultimately, clients can conduct their business with peace of mind, without worrying about operating without active TPL protection.
Conclusion: Don’t Underestimate Renewal, Protect Your Business Today
Renewing a Third Party Liability (TPL) policy isn’t just an annual administrative matter. It’s a safety net that protects businesses from legal risks that can arise suddenly and without warning. Through these examples, we see that even the slightest negligence—even forgetting to renew a policy for a single day—can lead to significant financial losses, legal disputes, and even a loss of reputation.
On the other hand, the renewal process doesn’t have to be complicated. With the assistance of an experienced broker, companies can ensure policies remain active, relevant, and tailored to current risk needs. Brokers like L&G Insurance Broker not only remind when renewal is due, but also help evaluate, adjust, and optimize protection to continue to provide maximum value for your business operations.
The bottom line is simple: a business that consistently renews its policy is one that is prepared for any risk. No one can predict when an incident will occur, but having an active policy means you always have a defense when the unexpected occurs.
Don’t let one small oversight threaten the future of your business. If you want to ensure the entire processrenewalRun smoothly, without gaps in coverage, and with the best results, trust professionals who understand your risks. Contact L&G Insurance Broker today—before your policy expires. Because the best protection is protection that’s always active on time.
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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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