Types of Business Insurance That Exist in Indonesia
Indonesian labor laws require employers to provide health insurance for their employees so that they will be insured against illnesses which might occur during working hours. Businesses are therefore obligated to issue health insurance to their workers to protect their health rights.
Life insurance is not required by law in Indonesian companies; however, it is nevertheless recommended. A company can form an agreement with the employee to provide the employee with life insurance by deducting a certain amount of money from the employee’s annual earnings. This type of insurance lightens the burden of the employee’s family if the employee is the only person in the family who earns money. In such an instance, the beneficiaries will not be made to suffer much.
Employees’ compensation insurance serves as coverage related to employees’ general wellbeing. The Indonesian Ministry of Manpower requires that in case of any accident in the workplace, the employees are to be covered by the employees’ compensation insurance purchased by the company.
Liability insurance protects the employees from losses brought about by certain claims. It also ensures that the employer will be compensated in case of any occurrence of an accident that might damage any property.
Property insurance covers equipment, inventory, and other business assets in cases of incidents such as fires, thefts, or storms. The standard property insurance offered in Indonesia, however, does not cover events of mass destruction such as earthquakes and floods. Insurance which covers such events is provided separately by the insurers.
Vehicle insurance is compulsory in almost all the countries of the world. If a company vehicle is used by an Indonesian company, the vehicles should be fully insured to protect businesses against liability in case of an accident.
How to Apply for Business Insurance in Indonesia
Before applying for business insurance, a business owner must first know the type of insurance which is required for the business. Prior to the making of the application, it is essential to conduct research on the necessary type of insurance by contacting professionals such as reputable and trustworthy agents or brokers. Once the appropriate type of business insurance has been determined, the business owner ought to approach an insurance provider which specializes in the desired type of business insurance. Insurance providers are able to assist anyone with the selection of the type of insurance which will be of greatest benefit in any given situation.
Before purchasing the business insurance, the business owner ought to scrutinize the details of the insurance and ask questions whenever necessary. It is also important to carefully search for the best insurance prices which nevertheless cover everything in the company which may need to be insured. Other areas to be taken into consideration include the losses the insurance which has been selected will cover, how much money is to be paid for each claim before compensation may be received, and by what means the insurance is to be paid. It is also essential to ensure that the company’s insurance policy has been appropriately updated. A business owner can learn more about this by contacting an insurance broker to discuss the details of the business’s existing insurance policy.