Business Insurance In Indonesia: Types & How To Apply

4 min read|Last Updated: January 10, 2023|

Business insurance is a type of coverage that protects a company from risks and unforeseen events that may arise during routine business operations. It can help safeguard you against losses caused by property damage and liability claims.

Employee errors, natural disasters, thefts, fires, and other hazards pose a threat to all firms. As a result, business insurance supports in preserving the business’s continuance by providing compensation for any losses incurred.

Importance of Business Insurance in Indonesia

All types of losses are covered by business insurance. When events occur that might otherwise result in a loss, business insurance will compensate the business owners. Losses due by employee negligence are among the types of losses covered by business insurance in Indonesia. According to insurance rules, the corporation must compensate the company and return it to its original position.

Aside from that, the benefits of having a business insurance in Indonesia include:

1. Improves company’s effectiveness

As it provides the owner with the assurance of compensation in the event of any losses, business insurance allows the owner to spend more time on the operations of the business.

2. Ensures employee’s safety

Employee safety is also ensured by business insurance, which protects them from the impacts of workplace accidents and other disasters. Furthermore, employees who know they are covered in terms of safety and health will have more peace of mind and, as a result, will be more productive.

3. Safeguards company’s long-term viability

In general, business insurance is an important aspect of safeguarding a company’s long-term viability. This is because the insurance will benefit the company’s employees. Employees that are insured are also better workers, which means that the company’s productivity will improve.

What are the Different Types of Business Insurance that Exist in Indonesia?

There are many different types of business insurances in Indonesia, which are:

1. Health Insurance

Employers are required by Indonesian labour rules to provide health insurance to their employees in order to protect them from illnesses that may arise during working hours. As a result, businesses are required to provide health insurance to their employees in order to preserve their health rights.

2. Life Insurance

Life insurance is not required by law in Indonesian businesses; however, it is strongly advised. A corporation can enter into an arrangement with an employee to offer life insurance to the employee by withholding a set sum from the employee’s annual salary.

If the employee is the only one in the family who works, this sort of insurance relieves the family’s financial burden. Beneficiaries will not be subjected to undue hardship in this case.

3. Compensation Insurance

Employees’ compensation insurance provides coverage for the general well-being of employees. Employees must be covered by the company’s employees’ compensation insurance in the event of an accident at work, according to the Indonesian Ministry of Manpower.

4. Liability Insurance

Employees are covered by liability insurance against losses caused by certain claims. It also ensures that the employer will be compensated in the event of an accident that causes property damage.

5. Property Insurance

Property insurance protects your business’s equipment, inventory, and other assets in the event of a fire, theft, or storm. Standard property insurance in Indonesia, on the other hand, does not cover mass-casualty disasters like earthquakes and floods. Insurers give coverage for such incidents on a case-by-case basis.

6. Vehicle Insurance

Vehicle insurance is required in practically every country. If an Indonesian firm uses a company car, the vehicle should be adequately insured to protect the company from liability in the event of an accident.

How do I Apply for Business Insurance in Indonesia?

Before applying for business insurance in Indonesia, a business owner must first determine what type of coverage is required. It is crucial to perform research on the required sort of insurance prior to submitting the application by contacting specialists such as reputed and trustworthy agents or brokers.

The business owner should approach an insurance provider that specialises in the desired sort of business insurance once the proper type of business insurance has been determined. Insurance providers can assist anyone in determining which sort of insurance will be the most beneficial in any given situation.

Before acquiring business insurance, the business owner should review the policy’s details and ask any questions that arise. It is also crucial to shop around for the greatest insurance rates while still covering all that has to be covered in the organisation.


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What insurance is a business required to have?2021-12-31T11:15:53+08:00

The federal government requires every business with employees to have workers’ compensation, unemployment, and disability insurance. Some states also require additional insurance. Laws requiring insurance vary by state, so visit your state’s website to find out the requirements for your business. 

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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