Construction Project Explosion in Greater Bandung
Greater Bandung — encompassing Bandung City, Bandung Regency, and Cimahi — is now a center for infrastructure development and new industrial areas.
From housing projectscommercialIn Gedebage, hotel construction in Lembang, to the new factory in Rancaekek, construction activity has increased sharply.
However, behind this excitement, many contractors and project owners in Bandung experienced huge losses when projects suddenly stopped — whether due to work accidents, heavy equipment damage, extreme weather, or fire.
Even more ironic, many of them already have construction insurance, but when claims are filed, the results are disappointing:
“Sorry, this risk is not covered by your policy.”
This is one of the most common frustrations among Bandung contractors — and also the reason why more and more companies are now partnering with PT. Liberty and General Insurance Broker (L&G) to handle all their project insurance matters.
Logistics Warehouse Project in Soreang Halted Completely
Take PT. Bina Maju Konstruksi, a local contractor currently working on a 5,000 m² logistics warehouse construction project in the Soreang area of Bandung Regency.
In the third week of work, extreme weather accompanied by strong winds hit. Part of the incompletely assembled steel frame collapsed, crushing the scaffolding and heavy equipment below.
Severe damage occurred to the crane and steel materials, while workers had to stop work for almost two full weeks.
Material losses reached IDR 1.1 billion, not including delay costs and penalties from the project owner.
However, when PT. Bina Maju Konstruksi submitted a claim to the insurance company, they received a surprising answer:
“Losses due to strong winds are not covered as they are not included in the standard CAR/EAR policy clause.”
It turns out that the contractor only purchased a policy with basic coverage — Contractor’s All Risks (CAR) without any extensions forstorm, flood, and windstorm risks.
They don’t know that the additional clause must be specifically requested.
Common Mistakes Contractors in Bandung Make in Managing Project Insurance
L&G has helped many construction companies in Bandung facing similar challenges. Based on that experience, there are several common mistakes that often lead to losses:
- Not Understanding the Actual Coverage of a CAR/EAR Policy
Many contractors assume that “All Risks” means all risks are covered.
However, CAR/EAR policies have limitations, and some risks such as floods, strong winds, landslides, or design errors are not automatically covered.
- Purchasing a Policy is Just a Formality for Tender Requirements
Many government and private projects require insurance, but contractors only purchase policies for administrative purposes, not for real protection.
As a result, they choose the cheapest premium without knowing what they are sacrificing in the guarantee.
- No Coordination Between Contractor and Project Owner
In some cases, project owners purchase their own policies without informing the contractor of the details, so that when an incident occurs, it is unclear who is actually covered.
- Not Including the Risk of Delay in Start-Up (DSU)
Project delays can result in significant financial losses, especially if the project is commercially oriented.
However, most contractors in Bandung do not add a DSU clause, so time losses cannot be claimed.
- Not Using an Insurance Broker
This is the biggest mistake.
Without professional assistance, contractors often don’t know what they’re buying, don’t know how to file a claim, and have no bargaining power with insurance companies.
Another Case Study: A Hotel Project in Dago Suffers a Fire
A four-star hotel construction project in Dago experienced a small fire in the material storage room.
Cause: short circuit from temporary cable.
Damage to building materials and equipment reached around Rp. 700 million.
However, their claim was only paid Rp. 300 million.
The reason is that insurance only covers damage to building structures that are 50% complete, while the remaining materials are not considered “on site construction.”
The contractor was deeply disappointed. Following the incident, they sought a professional solution and ultimately partnered with PT. Liberty and General Insurance Broker (L&G).
L&G conducted a full audit of all their policies and found:
- Many projects are not yet fully covered.
- The insured value does not match the contract value.
- There is no protection for temporary materials.
Following the program improvements, each new contractor project now has comprehensive protection from the start of work through to handover.
How L&G Helps Contractors and Project Owners in Bandung
As an independent insurance broker, L&G plays a vital role in ensuring that every project risk is comprehensively and efficiently protected.
Following are the strategic steps taken by L&G for clients in Bandung:
- Risk Audit and Site Condition Analysis
L&G directly inspects project sites to identify potential risks:
- Is the location prone to flooding or landslides?
- Are there flammable materials?
- How is the security and electrical system in the field?
This analysis helps determine what additional clauses must be included in the policy.
- Preparation of a Comprehensive Construction Insurance Program
L&G designs a combination of guarantees to suit project needs, including:
- Contractor’s All Risks (CAR)
- Erection All Risks (EAR)
- Third Party Liability (TPL)
- Delay in Start-Up (DSU)
- Workmen’s Compensation Insurance (WCI)
- Equipment and Plant Insurance
With a design like this, contractors and project owners can sleep soundly knowing all risks are covered.
- Premium and Clause Negotiation
With an extensive network of national and international insurance companies, L&G is able to:
- Compile tender prizesto get the most competitive prices.
- Negotiate extended coverage without excessive premium increases.
The result: maximum protection, minimum cost.
- 100% Claim Assistance
When an incident occurs, the L&G claims team will accompany clients from the beginning until the disbursement of funds.
They help prepare documents, negotiate with loss adjusters, and ensure there are no “technical” reasons to deny claims.
Success Story: Infrastructure Projects in Bandung Regency
A national contractor company is handling a connecting bridge construction project in South Bandung Regency.
When the major flood hit, parts of the project were submerged in water and damage occurred to the scaffolding and foundations.
Because they had partnered with PT. Liberty and General Insurance Broker (L&G), their claim was filed quickly and paid in full, amounting to Rp 2.3 billion.
Project management says:
“We used to think all insurance was the same. After experiencing how L&G works, we realized — the right broker can save a project.”
Why Bandung Contractors Choose L&G
There are several compelling reasons why PT. Liberty and General Insurance Broker (L&G) is the preferred partner for contractors, developers, and project owners in Greater Bandung:
- 🧱Project Insurance & EPC Specialist
L&G has experience in handling insurance for large projects throughout Indonesia, including EPC, infrastructure, and property. - ⚙️100% Client-Supported
As an independent broker, L&G does not represent insurance companies, but rather your interests as a policyholder. - 📋Complete Clauses, No “Holes” in Protection
Each clause is designed to suit field conditions and work contracts. - 💰Competitive Premiums with Extensive Coverage
Through a tender system and good relationships with many insurance companies, L&G is able to provide the best rates. - 🕒Fast and Transparent Claims Assistance
L&G doesn’t abandon clients once a policy is active. They’re there until the claim is paid.
Important Lesson: Don’t Wait for a Project to Stop to Realize Insurance Isn’t Enough
Many contractors only realize the importance of proper insurance design after their project is halted due to an incident.
However, late fees, repairs, and penalties can be much more expensive than the annual premium.
With a broker like L&G, all construction risks can be mapped and controlled from the start — so business can continue running smoothly even if unforeseen events arise.
Conclusion: Protect Your Project Before It’s Too Late
Construction projects in Bandung are large and complex investments.
Once disrupted, the impact can spread throughout the business chain.
The good news is, all of these risks can be managed with the right insurance program — not just a formality.
With PT. Liberty and General Insurance Broker (L&G), you get real protection, not empty promises.
Are you working on a construction project in Bandung, Cimahi, or Bandung Regency?
Ensure your project is protected from all operational, weather and legal liability risks.
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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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📞Free Consultation: Get a project risk audit and design the right construction insurance program for you.
💼L&G — Protecting Your Project from Unexpected Risks.
