Public Liability Insurance Batam

Major shipyards in Batam such as PT. Paxocean, Drydocks World, and Batam Shipyard & Offshore generally impose strict requirements on all vendors and subcontractors within their work contracts. One standard clause that must be satisfied before a subcontractor is allowed onto the shipyard premises is holding Public Liability Insurance with a minimum sum insured set by the principal — usually Rp 1–5 billion per occurrence. Without this insurance certificate, the Purchase Order (PO) or Work Order (WO) from the shipyard will not be issued, and the subcontractor cannot enter the work area.

Based on our experience assisting vendors/subcontractors partnering with PT. Paxocean in Batam, common requirements include: (1) a Public Liability policy with a minimum limit of Rp 2–5 billion per occurrence; (2) PT. Paxocean must be named as 'Additional Insured' or a designated party on the policy; (3) the policy period must cover the entire duration of the work contract; (4) a Certificate of Insurance (COI) must be submitted to the shipyard's HSE/Procurement department prior to mobilisation; (5) the policy must be issued by an OJK-licensed insurance company. We are experienced in preparing COI documents in the format directly accepted by major Batam shipyards' HSE teams.

Real-world scenario: a sandblasting service subcontractor at a shipyard in Tanjung Uncang experienced an incident — a third-party worker (a daily-hire worker from another vendor, not the subcontractor's own employee) was struck by abrasive debris and suffered a serious eye injury. Costs incurred: hospitalisation and eye surgery Rp 85 million, legal fees defending against the family's claim Rp 75 million, compensation for permanent vision impairment Rp 350 million. Total exposure: Rp 510 million. With an active Public Liability policy, all of these costs were settled by the insurer — the subcontractor only paid the agreed deductible, and the shipyard contract continued without disruption.

Beyond the maritime sector, this insurance is essential for: (1) hotels and resorts in Nongsa, Harbour Bay, and Nagoya — risk of guest injury in swimming pools, restaurants, or parking areas; (2) shopping centres and tenants (Nagoya Hill Mall, BCS Mall) — risk from slippery floors, escalators, and parking incidents; (3) event organisers running exhibitions, concerts, or corporate gatherings; (4) building contractors — mandatory for mid-to-large government and private projects; (5) clinics and hospitals — additional protection beyond medical malpractice cover; (6) gyms, spas, and sports facilities.

Documents to prepare: (1) Company legality: NIB, SIUP/TDP, NPWP, Deed of Establishment; (2) Business profile: type of business activity, number of employees, size of operational area; (3) For shipyard subcontractors: a copy of the contract/WO with the principal and the scope of work to be carried out; (4) Claims history for the past 3 years (if any); (5) If the principal requires Additional Insured status: the full name and address of the principal company to be named. With complete documents, a policy can typically be issued within 1–3 working days — fast enough to meet project mobilisation deadlines.

Claim steps: (1) Secure the site and provide first aid to anyone injured; (2) Document the incident — photos, video, witness statements, and an internal HSE report; (3) Notify the insurer within a maximum of 3×24 hours after the incident via the claims hotline; (4) Do not admit liability in writing to the claiming party before coordinating with the insurer — this is a standard policy condition; (5) Submit the incident report, the third party's claim letter, and the victim's medical documents; (6) A loss adjuster will typically be assigned within 3–5 working days to assess the claim; (7) The claim is settled through negotiation or, if needed, legal proceedings depending on how the case develops.

Premiums vary based on the sum insured, type of work, and contract duration. As a guide: for subcontractors doing sandblasting/painting or light fabrication work, with a limit of Rp 2 billion per occurrence over a 6-month contract, premiums range from Rp 3–8 million. For multi-year contracts with a wider scope, annual premiums can reach Rp 10–30 million. We offer competitive quotes with a fast issuance process that accounts for the urgency of shipyard project mobilisation deadlines. Contact +62-813-7333-6728 for a quote within 1 working day.