Insurance for renovation contractors in Singapore
What a renovation business in Singapore must insure
Two requirements apply to most renovation firms.
Work injury compensation. Under the Work Injury Compensation Act 2019, an employer must insure all employees doing manual work, whatever their salary. Non-manual employees earning S$2,600 a month or less must also be insured. The salary test excludes overtime, bonus, annual wage supplement, incentives and allowances. Carpenters, tilers, electricians, painters and site supervisors doing manual work all fall inside it.
Failing to insure a required employee is an offence. The penalty is a fine of up to S$10,000, jail of up to 12 months, or both. Since 1 January 2021, policies must come from an MOM-designated insurer on MOM's compulsory terms.
HDB licence guarantee. A contractor must be listed in HDB's Directory of Renovation Contractors (DRC) to renovate HDB flats. A licence guarantee is required to apply for or renew the listing. HDB sets the guaranteed sum and period. The insurer's fee depends on the contractor's financial standing, years in business and record with HDB.
Public works add a third layer. Contracts on the Public Sector Standard Conditions of Contract (PSSCOC) require insurance of the works, third-party liability and work injury compensation before work starts on site.
Covers most renovation businesses carry
| Cover | Why | Compulsory? |
|---|---|---|
| Work injury compensation | Pays statutory compensation to injured employees | Yes, for manual workers and non-manual staff at S$2,600 or less |
| Public liability | Pays claims for injury to others and damage to neighbours' and common property | No by statute; required by most MCSTs, landlords and main contractors |
| Contract works (contractors' all risks) | Pays for damage to the works in progress and materials on site | No; required on larger and public contracts |
| HDB licence guarantee | Supports the DRC listing | Yes, for HDB work |
| Commercial motor | Covers vans and lorries on the road | Third-party cover yes |
| Tools and equipment | Covers owned tools against theft and damage | No |
| Office package | Covers the showroom, stock and office contents | No |
For accidents from 1 November 2025, WICA compensation limits rose. Medical expenses are capped at S$53,000 or 1 year. Permanent incapacity pays S$116,000 to S$346,000, multiplied by the percentage of incapacity. Death pays S$91,000 to S$269,000. The work injury compensation page sets out how the cover is placed.
Risks specific to renovation
Renovation work happens inside occupied buildings. The claims follow from that.
- Water damage to units below. A cracked pipe or failed waterproofing during bathroom works floods the unit underneath. The neighbour's claim falls under public liability.
- Hacking and structural damage. Removing a wall or slab without approval can damage the structure. Many public liability wordings exclude damage to load-bearing elements unless declared.
- Fire from hot works. Welding, grinding and soldering create fire risk in a block of flats. Insurers often impose a hot works condition: permit, extinguisher and a fire watch.
- Injury to residents and visitors. Debris in corridors and lifts injures third parties. That claim also falls under public liability.
- Falls from height. Window and facade works carry fall risk for workers. These claims fall under WICA.
- Subcontracted trades. Many firms subcontract electrical, plumbing and carpentry. MOM states that subcontractors must insure their own employees. The main contractor should confirm each one has done so.
- Damage to the client's own property. Damaged built-in furniture and floors are usually excluded from public liability as property in the contractor's care, custody or control.
What moves the premium
WICA is priced on the declared annual wages and the trade of each worker. Manual trades working at height rate higher than supervisors and designers. The claims record over the last 3 to 5 years moves the rate up or down.
Public liability is priced on annual turnover, the type of work and the limit. A firm doing mainly hacking, wet works and hot works pays more than one doing design and carpentry. A higher limit adds premium, though not in proportion.
Contract works is priced on the contract value, the period and the nature of the works. Water and fire perils carry their own excess.
Four controls lower the rate insurers apply:
- Written hot works procedures with permits.
- Waterproofing tests before tiling, recorded with photographs.
- A record of each subcontractor's WICA certificate.
- Prompt reporting of incidents, even small ones.
The claims record matters more than size. A 10-person firm with three water-damage claims in two years pays more than a 30-person firm with none.
What the broker needs from you
A broker needs the following to obtain terms:
- Company details: UEN, years in business, DRC listing status and any BCA registration.
- Headcount by trade, with annual wages for manual and non-manual staff.
- Annual turnover, split by HDB, private residential and commercial work.
- A description of the work done: hacking, wet works, electrical, hot works, carpentry and facade.
- The proportion of work subcontracted, and how subcontractors' insurance is checked.
- Claims for the last 3 to 5 years, with dates, amounts and causes.
- The limits required by your largest clients, MCSTs and main contractors.
- A list of vehicles and their usage.
- For contract works cover, the contract value, period and scope of each project.
Accurate wages and trades matter most for WICA. Under-declaring wages leaves the policy priced on the wrong base. The insurer can adjust the premium at the end of the period.
Frequently asked questions
Does HDB check my public liability policy?
HDB sets the conditions for DRC listing and renewal, and they change. Check the current terms on HDB's renovation contractor pages before each renewal. Homeowners and town councils may also ask for the policy schedule before works begin.
Do I need WICA for subcontracted workers?
Each subcontractor must insure its own employees, as MOM states on its WICA insurance page. A renovation firm acting as main contractor should collect each subcontractor's certificate before work starts. Keep the certificates on file for the length of the job.
Are tools and materials on site covered?
Not under public liability or WICA. Materials incorporated into the works fall under a contract works policy. Owned tools and equipment need their own cover, often written as a tools or equipment extension.
What does an MCST usually require for condo works?
Each MCST sets its own renovation rules under its by-laws. These rules commonly cover a deposit, permitted work hours and proof of insurance. Ask the management office for the required limit in writing and match the policy to it.
Sources
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.