Bandung’s Tourism Industry Continues to Grow, But is Vulnerable to Risks
The Greater Bandung area—particularly Lembang, Dago, Ciwidey, and Pangalengan—is now one of the busiest tourist destinations in West Java. Every weekend, thousands of tourists fill hotels, villas, glamping sites, restaurants, and cafes, surrounded by stunning natural scenery.
However, behind the success of the tourism sector, many business actors face a bitter reality:
the insurance policies they had turned out not to really protect them.
Most hotel and restaurant owners feel they have “insurance,” but when disaster strikes—such as a kitchen fire, electrical short circuit, building damage due to strong winds, or a guest accident—their claims are rejected.
This is where the role of PT. Liberty and General Insurance Broker (L&G) becomes crucial.
As an independent insurance broker, L&G helps business owners in Bandung’s tourism sector understand the details of the protection they need, so they can avoid disappointment and major losses when risks arise.
A restaurant kitchen fire in Lembang was not covered by insurance.
Take Gunung Asri Restaurant for example, a popular dining spot in the Lembang area that is famous for its wooden building concept and mountain views.
One rainy night, an electrical short circuit occurred in the kitchen area. The fire quickly spread to the rear of the building, destroying most of the kitchen and the raw materials warehouse.
The restaurant owners immediately reported the incident to their insurance company. However, a few weeks later, their claim was denied.
The reason: the electrical installation does not comply with SNI standards, and their policy only guaranteesFire and Lightningwithout expansion forElectrical Short Circuit.
In fact, the loss reached Rp. 800 million — including building repairs, kitchen equipment, and lost income due to being closed for a month.
“Even though I regularly pay my premiums every year, when I need them, they refuse,” said the owner disappointedly.
After consulting with L&G Insurance Broker, he understood that insurance policies should be designed based on the actual business character and risks, not just as a formality.
Common Mistakes Hotel and Restaurant Owners in Bandung Make in Understanding Insurance Policies
Based on L&G’s experience assisting many clients in Bandung, here are five key mistakes that tourism business owners often make:
- Relying Only on Simple Fire Insurance
Many hotels and restaurants only have policiesFire Insurance, even though they should have Property All Risks (PAR) which includes:
- Fire and lightning
- Gas explosion
- Water damage
- Strong winds and extreme rain
- Riots or unrest
- Damage to the cooling system, electrical system or boiler
PoliceFire Insuranceonly bear a small fraction of the actual risk.
- Not Including Extensions forBusiness Interruption
After a disaster, businesses often close for months.
Without guaranteeBusiness Interruption (BI), entrepreneurs do not receive compensation for lost income during the repair period.
In fact, this is the biggest loss in the hospitality industry.
- Ignoring the Risk of Legal Liability
Many hotel owners are unaware that they can be sued by guests for injuries or losses within the property.
For example: a guest slips in the pool area, or a visitor’s car breaks down in the parking lot.
Without Public Liability Insurance, all legal costs and compensation must be borne by yourself.
- Inaccurate Insurance Value
Some owners only insure the building without taking into account furniture, kitchen equipment, electronics, and HVAC systems.
As a result, when claiming, the compensation value is only half of the actual loss (underinsurance).
- Not Understanding Technical Terms and Clauses
Many policies include clauses such asWarranted electrical installation comply with SNI standard or deep frying with automatic extinguisher system installed.
If these conditions are not met, the claim may be rejected, even if the premium has been paid for years.
Another Case Study: Boutique Hotel in Dago Atas Loses Image and Revenue
A boutique hotel in Dago Atas, with 30 rooms and a rooftop restaurant, suffered a roof collapse due to a combination of heavy rain and flawed lightweight structural design.
Fortunately there were no casualties, but the hotel had to close for three months for renovations.
When a claim was filed, the insurance company refused on the grounds that “design faults” were not covered under standard policies.
Losses reached more than IDR 2.3 billion, not including loss of reputation due to negative reviews on social media.
Following the incident, the hotel management sought assistance from L&G Insurance Broker.
The L&G team conducted a comprehensive risk audit, then developed a new program that included:
- Property All Risks (PAR)
- Business Interruption
- Public Liability
- Machinery Breakdown
- Fidelity Guarantee(for potential employee fraud)
Now, the hotel is fully protected and no longer worries about facing similar risks.
How L&G Helps Hotel and Restaurant Owners in Bandung
L&G has a strategic and realistic approach in helping hospitality businesses in Bandung and its surroundings:
- Field Risk Audit
The L&G team conducted on-site inspections of business locations — including hotels in Lembang, cafes in Ciumbuleuit, and resorts in Ciwidey — to identify potential hazards such as:
- Electrical installation does not meet standards
- High risk kitchen areas
- Stairs, pools, or public areas prone to accidents
- Flammable building materials
- Preparing the Right Insurance Program
After understanding the risk characteristics, L&G designed an insurance program that includes complete protection, including:
- Property All Risks (PAR)
- Business Interruption (BI)
- Public Liability
- Workmen’s Compensation
- Money Insurance
- Burglary / Theft Insurance
All are personally sewn according to the client’s needs and financial capabilities.
- Negotiation with Insurance Company
L&G is not tied to one insurance company, so it can source the best deals from several leading insurers.
Clients get the best combination of affordable premiums and maximum guarantees.
- Assistance During Claims
When an incident occurs, L&G does not leave the client alone.
The claims team will help prepare documents, communicate with loss adjusters, and fight for the client’s rights until the claim is paid in full.
This process often saves time and avoids misunderstandings that could lead to claim denials.
Real-World Lesson: Don’t Just Buy Insurance — Understand Its Function
Most business owners in Bandung buy insurance simply because they are “required by the bank” or “recommended by a colleague.”
However, without understanding its function, the policy becomes merely a formality without real protection.
After all, insurance isn’t about the policy paper — it’s about ensuring that your business will continue to operate even if disaster strikes.
And to get that certainty, a professional insurance broker like L&G is your best partner.
They are not salespeople, but advisors who ensure that the police really work for you.
Why Hotel and Restaurant Owners in Bandung Should Choose L&G
Here are some reasons why L&G Insurance Broker is the best choice for Bandung’s tourism sector:
- 🏨Specialist in Hospitality and Commercial Industry
Experienced in handling hotel, resort, restaurant and villa insurance in various tourist areas of Indonesia. - 📋Risk Analysis and Field Audit
Don’t just sell policies — L&G first understands the potential risks your business faces. - ⚖️Negotiate Favorable Premiums and Terms
L&G has access to many major insurance companies, so it can negotiate the best terms and premiums for clients. - 🧾Claims Assistance at No Additional Cost
The L&G team will accompany you until your claim is actually paid, not just handed over to the insurance company. - 💡Education and Transparency
The client gets a full understanding of the contents of the policy, including its limitations, exclusions, and rights.
Conclusion: Don’t Wait Until Your Business Becomes a Victim
Bandung and Lembang may be known as cool and friendly tourist cities, but behind their natural beauty, business risks remain real — short circuits, fires, extreme weather, and the risk of legal liability.
Many hotel and restaurant entrepreneurs in Bandung have learned the hard way:
They only realized the importance of an insurance broker after their claim was rejected.
Don’t let the same thing happen to your business.
With PT. Liberty and General Insurance Broker (L&G), you can be sure that every dollar you invest in insurance truly protects your assets, income, and business reputation.
Are you a hotel, restaurant, café, or villa owner in Bandung, Lembang, or Ciwidey?
It’s time to make sure your business protection actually works when disaster strikes.
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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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💼 L&G — Your Trusted Insurance Advisor for Hospitality and Business Protection in Bandung.
