How much does business insurance cost in Singapore
Key takeaways
- Small offices and shops buy packages with fixed limits. Shop packages rate higher than office packages for the same limits.
- Above package size, each policy is priced on its own driver: payroll, turnover, sum insured or vehicle count.
- Singapore's general insurance market wrote S$6.09 billion of domestic premium in 2025, up 8.4%.
- Insurance premiums incurred to produce income are deductible business expenses under IRAS rules.
Package or line-by-line rating
Insurers sell fixed packages only for small, standard risks. A package bundles property all risks, public liability, money, personal accident and consequential loss at set limits. WICA is usually an optional add-on, priced per employee.
| Package choice | Direction of premium |
|---|---|
| Shop rather than office premises | Higher; stock and public footfall add theft and injury exposure |
| Higher plan: larger contents sum insured and liability limit | Higher |
| WICA added for manual staff rather than office staff | Higher per head |
| Top-ups above the plan limits | Higher, in fixed steps |
| Road-level or basement unit | Higher flood excess |
Packages carry eligibility rules. SME office packages commonly exclude contractors, logistics firms, manufacturers and shared premises. Those businesses are rated individually, line by line.
WICA is compulsory for every employee doing manual work and for non-manual employees earning S$2,600 a month or less. It is priced on declared wages by occupation, so a package's WICA add-on scales with headcount and trade.
What sets the premium
Each line of insurance has its own rating base. Seven factors move the price across all of them.
Rating base
The rating base is the figure the insurer applies its rate to. For WICA it is annual wages by occupation, as set out in how WICA premiums are worked out. For public liability it is usually turnover. For property it is the sum insured.
Occupation and activity
Insurers rate what the business does, not its industry label. A logistics firm with drivers costs more to insure than one with only office staff.
Limits and sums insured
Higher limits cost more, but not in proportion. The first layer of liability carries most of the premium, because most claims settle within it. Each extra layer costs less per dollar of cover.
Excess
The excess is the amount the business pays on each claim. A higher excess lowers the premium and removes small claims from the record.
Claims history
Insurers ask for the claims record of recent policy years. Frequent small claims raise the rate more than one large claim.
Premises and protection
Construction, sprinklers, alarms and location set property rates. A basement or road-level unit can attract a flood excess.
Market conditions
Rates follow insurers' results. When claims rise across a class, insurers raise rates for every buyer in it.
How the market moved in 2025
The General Insurance Association of Singapore (GIA) publishes annual results for the domestic market. The 2025 figures show where pressure on rates sits.
- Total. Gross written premium reached S$6.09 billion, up 8.4%. Net incurred claims were S$1.8 billion.
- Motor. The largest class, at S$1.28 billion of premium, up 5.2%. Motor claims rose 11% while accident numbers stayed flat.
- Property. Premiums rose 4.1% to S$864.1 million. Property claims rose 60.5%, which GIA attributes to more fire incidents and several large losses.
- Work injury compensation. Premiums were S$488.2 million. The class made an underwriting profit of S$94.4 million, up from S$58.6 million in 2024.
A 60.5% rise in property claims against 4.1% premium growth puts upward pressure on property rates. A profitable WICA class gives buyers with clean records room to negotiate.
Worked examples
Example 1. A 12-person accounting practice in a CBD office. Covers: office package, WICA for all staff, PI. The office package fits standard SME plans. PI is the main cost, priced on fee income and the limit clients require.
Example 2. A 60-person trading company with a leased warehouse. Covers: property all risks on S$3 million of stock, public liability, WICA, marine cargo. Stock value and warehouse protection drive the property premium. Import volume drives the cargo premium.
Example 3. A 300-person facilities management contractor. Covers: WICA on a large manual payroll, public liability at S$5 million, commercial motor for 25 vans, group medical. Manual wages drive WICA. Contract requirements set the liability limit. Fleet claims history sets the motor rate.
None of these examples has a published premium. Each is quoted on its own data.
Tax treatment of premiums
IRAS lists insurance premiums as a deductible business expense where they are incurred wholly and exclusively in producing income. Insurance to underwrite bad trade debts is listed as non-deductible.
Employee medical expenses, including group medical premiums, follow a separate cap. The deduction is limited to 1% of total employee remuneration, or 2% where the company meets IRAS's qualifying scheme conditions. Amounts above the cap are not deductible.
The cap matters for employers with high medical spend. For example, a company paying S$5 million in remuneration can deduct up to S$50,000 of medical costs at the 1% cap. Group medical premiums above that amount are a cost without a tax deduction.
Figures checked 14 November 2026.
Frequently asked questions
What drives the premium most: turnover, headcount or sum insured?
It depends on the policy. WICA follows payroll and occupation, public liability usually follows turnover, and property follows the sum insured. A business with high-value premises and few staff pays most of its premium on property.
Why do two similar companies pay very different premiums?
Claims history, activity detail and protection differ even between similar firms. One company with a sprinklered unit and no claims rates lower than a neighbour with three claims in three years. Limits and excesses also differ.
Is a package policy cheaper than separate covers?
For a small office or shop, a package usually costs less because the insurer prices a standard risk without underwriting. Larger businesses outgrow package limits and eligibility rules. They buy separate policies rated on their own data.
Are business insurance premiums tax-deductible in Singapore?
Yes, where the premium is incurred wholly and exclusively in producing income. Medical premiums for employees fall under the 1% or 2% remuneration cap. Insurance against bad trade debts is not deductible.
Sources
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.