• Business Insurance in ID

Every business in Indonesia will benefit from a suitable business insurance policy. This is because business insurance protects a business and its owner from various risks, losses, and negative consequences. Therefore, much care must be taken when purchasing business insurance.


Business insurance is a form of coverage which protects a business from any risks and contingencies which might occur during normal business operations. It is useful for protection against losses resulting from property damages and liability claims. All businesses are at risk of suffering from employee errors, natural disasters, thefts, fires, and other dangers. Therefore, business insurance aids in ensuring the continuity of the business because there will be compensation for any losses suffered.

Importance of Business Insurance

Business insurance covers all manner of losses. Business insurance will compensate the business owners when circumstances which would otherwise lead to a loss take place. Some of the losses which are covered by business insurance include those caused by employees’ negligence. Businesses do not have to spend as much money to pay for future losses if they are appropriately insured. Insurance principles require that the business compensate the company and restore it to its previous position.

Business insurance also increases the effectiveness of a business. Business insurance allows the owner of the business to devote more time to the operations of the business because it gives the owner the certainty of compensation in case of any losses incurred. This in turn would be likely to make the business more profitable because the management of the business would not have to spend much time trying to protect the business against risks because the insurance will cover all losses which might be incurred.

Business insurance ensures the continuity of a business. The business will continue to exist even after any set of circumstances takes place. Certain incidents might terminate the business’s existence if it is not adequately insured. Insurance will ensure that the business continues its operations because the owners will receive compensation benefits which will allow them to either continue the business or start a new one.

Business insurance also ensures the safety of employees because it protects them from the effects of workplace accidents as well as other mishaps. Furthermore, employees who know that they are guaranteed coverage with regard to safety and health will have greater peace of mind and thus an increased level of productivity. This will in turn enable the employees to put more effort in their work keeping in mind that if any danger occurs, they will be compensated.

In general, business insurance is a vital part of ensuring the stability of a business. All companies should be insured if possible. This is because the company’s employees will gain benefits from the insurance. Insured employees will also be better workers, which will in turn mean that the production level of the company will improve. In some countries, having business insurance cover is compulsory; those who own a business without business insurance are not allowed to conduct business operations in those countries.

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.


Business Insurance in Indonesia FAQs

Can anyone be denied business insurance in Indonesia?2020-04-02T16:05:43+08:00

An individual or business in Indonesia can legally be denied an insurance cover if the individual or business has engaged in illegal business activities. A business which has a history of bankruptcy may also be denied insurance by any insurance provider in Indonesia. A company could also be denied a business insurance if the insurance company believes that the business operations of the company are excessively dangerous and will expose its employees to injuries and accidents. A business owner could also be legally denied business insurance in Indonesia if the business owner has made an excessive number of claims in the past

Can foreign business owners receive business insurance in Indonesia?2020-04-02T16:05:08+08:00

Any business owner, whether local or foreign, can receive business insurance in Indonesia. For a foreigner to receive business insurance, the foreigner must already have three types of business insurance. These are BPJS Employment, BPJS Health Insurance, and a social security program. Foreigners are advised to always refer to a trusted insurance company from their home country that issues similar policies as do insurance companies in Indonesia if they have any insurance matters which concern insurance in their home country.

How expensive is business insurance in Indonesia when compared to that of its neighboring countries?2020-04-02T16:04:26+08:00

Business insurance in Indonesia is cheaper than it is most Southeast Asian countries. The rate of life insurance fell to 15.8% in 2017 from 17.9% in 2013. Life insurance in Indonesia is among the cheapest in the region; 50% of people in Indonesia own a life insurance policy. Indonesian property insurance when purchased in non-urban areas is much cheaper than insurance purchased in urban areas. Thus, there is much potential for profits and business growth which exists.

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