Yes, travel insurance for Labuan Bajo is worth arranging before you fly, and the reason has more to do with what happens after a dive than with the flight itself. This small gateway town on the western tip of Flores exists mainly to serve Komodo National Park, and most visitors spend part of their trip in the water or aboard a liveaboard boat rather than in a hotel room, which changes the risk profile from a typical beach holiday.
Medical care in Labuan Bajo itself is basic - a small hospital handles routine injuries and mild illness, but anything serious is typically stabilized locally first and then evacuated onward, usually to Bali, where private hospitals in Denpasar can manage more complex cases; if specialist treatment is needed, patients are sometimes moved further again, often toward Singapore. None of this is unusual for a remote dive destination, but it does mean a policy with genuine medical evacuation cover, not a token benefit, is the single most useful thing you can carry here.
The activity itself is the other half of the picture. Komodo's dive sites are rightly famous, but several of the best-known spots are known for strong, unpredictable currents that catch out even experienced divers, and decompression sickness is a real if uncommon risk in these waters. A standard travel policy often caps scuba diving at a shallow depth limit or excludes it altogether, so confirming your policy covers diving at the depths and conditions you plan, plus liveaboard days away from land, matters more here than in most places.
Wet-season weather, roughly November through April, brings rough seas and occasional delays into Komodo Airport, which can disrupt liveaboard schedules and onward connections, so trip-disruption cover is worth having for that stretch of the calendar. On the claims side, keep every receipt and any dive-incident report your operator issues, since evacuation or cancelled-liveaboard claims are assessed on documentation, not a verbal account. Check whether your existing health cover extends abroad and to Indonesia before assuming it applies here.