Construction Insurance in Bali and in Indonesia – Why Every Project Needs It

Whether you're building a private villa, a commercial property, or developing a full-scale project, Construction Insurance in Indonesia is not just a formality—it's your safety net.

With unpredictable weather, natural risks, and third-party liability concerns, having the right coverage in place from day one is key to protecting your investment, your timeline, and your peace of mind.

Let’s break down what you need to know.

What Is Construction Insurance?

Often referred to as Construction All Risk (CAR) insurance, this type of coverage protects your project throughout the building phase—from the moment work begins until the project is complete and handed over.

It typically includes protection against:

• Natural disasters like floods, storms, or earthquakes

• Damage to the structure during construction

• Loss or damage to materials on-site

• Third-party liability (e.g., damage to a neighboring property)

Who Needs It?

Construction insurance is essential for:

• Property owners building or expanding private or rental homes

• Developers managing residential or commercial projects

• Contractors responsible for construction execution

• Investors funding real estate projects in Indonesia

In some cases, it’s even required by financial institutions or requested by property buyers for peace of mind.

Why It Matters in Indonesia

Indonesia is known for its beauty—but also for tropical storms, heavy rainfall, flooding, and earthquakes. These natural events can severely impact construction progress or damage partially completed structures.

And due to the closeness of properties and community spaces, third-party liability is a serious risk. One wall collapse or drainage issue can lead to unexpected claims.

What You Need to Get Covered? Construction Insurance in Indonesia

Getting construction insurance is straightforward. You’ll typically need:

• Exact adress and location

• Picture as today

• The construction budget (total project value) - BOQ (bill of quantity)

• Project timeline (start and expected end date)

• Basic details about the structure and contractor with 2D or 3D plan

At BPI, we’ll guide you through this and prepare a transparent proposal based on your project’s specifics.

What About the Maintenance Period?

Good news: The maintenance period is always included in your policy.

At BPI, we don’t just get you covered—we manage the maintenance period for you, making sure you're protected in case of damage or defects that appear after handover.

Optional Add-Ons and Bundled Protection

You can enhance your protection with additional options, including:

• Workers’ Insurance (Tenaga Kerja)Covers injuries, accidents, or death involving workers on-site. This is not part of standard CAR coverage but can be easily bundled for complete site protection.

• Contractor’s Equipment CoverageProtects valuable tools and machinery used on the site from loss, theft, or damage.

• Surety Bonds (Especially for Property Owners)These financial guarantees ensure that the developer or contractor follows through on their obligations. They include:

  • Tender Bond – Confirms that the contractor will proceed if selected

  • Performance Bond – Ensures the project will be completed as agreed

  • Advance Payment Bond – Protects the funds paid before the work begins

  These bonds are especially valuable if you want financial guarantees and peace of mind that the builder won’t walk away from the job.

Final Thoughts

Construction insurance in Indonesia is affordable, flexible, and absolutely essential. Whether you're the owner, the developer, or the contractor—having proper coverage is what separates a risky build from a smart investment.

👉 Need help or want a quick quote?

Contact BPI on WhatsApp and we’ll walk you through it step by step.