Professional indemnity insurance cost in Singapore
Key takeaways
- No Singapore insurer publishes a PI price table. Every firm is quoted on a proposal form.
- Fee income is the rating base. The profession sets the rate applied to it.
- ACRA and MAS set minimum PI limits of S$1 million or more for accounting LLPs and financial advisers.
- Claims can arrive up to 6 years after the work, so PI is bought continuously, not per project.
What PI insurance covers
PI insurance pays claims that a firm's professional service was negligent and caused a client financial loss. It also pays defence costs, which can exceed the damages in a disputed claim. Most policies pay defence costs within the limit, so a long defence reduces the cover left for damages. Typical claims allege an error in advice, a design fault, a missed deadline or a breach of professional duty.
PI is written on a claims-made basis. The policy in force when the claim is made responds, not the policy in force when the work was done. A retroactive date limits cover to work done after that date. Both terms are explained in claims-made and the retroactive date.
Timing matters because of the Limitation Act 1959. Section 6 allows 6 years to sue in contract or tort from the date the cause of action accrues. Work done in 2026 can produce a claim in 2032. A firm that stops buying PI loses cover for all its past work. Firms that close or retire buy run-off cover for that reason.
Minimum limits set by regulators
Some regulators set the PI limit a firm must carry. These are minimums, not recommendations.
| Firm | Regulator | Minimum PI limit |
|---|---|---|
| Accounting LLP | ACRA | Highest of S$1 million, S$500,000 per corporate practitioner, or 2.5 times last year's gross income (income figure capped at S$50 million) |
| Financial adviser, revenue up to S$5 million | MAS | S$1 million |
| Financial adviser, revenue above S$5 million | MAS | Lower of 20% of gross revenue or S$10 million |
| Financial adviser issuing research reports only | MAS | S$500,000 |
| Insurance broker | MAS | Set under the Insurance (Intermediaries) Regulations |
For example, an accounting LLP with four corporate practitioners and S$1.2 million of fee income needs the highest of S$1 million, S$2 million or S$3 million. Its minimum limit is S$3 million.
The ACRA limit moves with the firm. Each new corporate practitioner adds S$500,000 to that limb. Each S$100,000 of extra gross income adds S$250,000 to the income limb. The firm should recalculate the minimum at every renewal.
What sets the premium
Seven factors set a PI premium. The table shows the direction of each.
| Factor | Effect on premium |
|---|---|
| Annual fee income | Base the rate is applied to |
| Profession and services | Sets the rate; design and financial advice rate highest |
| Limit of indemnity | Higher limit, higher premium, at a falling rate per dollar |
| Excess | Higher excess, lower premium |
| Claims and circumstances | Any past claim or known issue raises the rate |
| Contract terms | Uncapped liability or overseas work raises the rate |
| Risk management | Written engagement letters and peer review lower it |
Fee income
Insurers apply a rate to gross fee income from the last financial year.
Profession and services
The rate reflects how often a profession is sued and how large claims are. An engineering firm doing structural design rates higher than one doing inspections.
Limit of indemnity
The limit is the most the insurer pays, either per claim or in the aggregate for the year. Each additional million costs less than the first.
Claims and circumstances
The proposal form asks about past claims and any circumstance that may lead to one. Non-disclosure can void the policy.
Contract terms
Uncapped liability clauses expose the firm to larger claims. Work for clients in other jurisdictions raises the rate.
Risk management
Insurers ask about engagement letters, quality control and record keeping.
Worked examples
Example 1. An accounting LLP with 4 corporate practitioners and S$1.2 million of fee income. Minimum limit: S$3 million under ACRA's formula. Fee income and audit work drive the premium. Clean claims history keeps it at the base rate.
Example 2. A licensed financial adviser with S$8 million of revenue. Minimum limit: S$1.6 million, which is 20% of revenue and below the S$10 million cap. Investment advice to retail clients is the main rating factor.
Example 3. A 25-person IT consultancy with S$6 million of fees. No regulatory minimum. Client contracts require S$5 million. Uncapped liability clauses and one overseas client are the main drivers. Negotiating a liability cap in client contracts reduces the limit the firm needs.
The three firms share one feature. Each must keep PI in force after a project ends, because claims can arrive for 6 years after the work.
Figures checked 14 November 2026.
Frequently asked questions
How is a PI premium calculated: fee income, limit or headcount?
Fee income is the base, and the profession sets the rate. The limit then scales the premium up. Headcount matters only as a check on fee income and supervision.
What limit do clients usually require in contracts?
The contract sets it, and it varies by client and project size. Regulators set floors for some professions, such as S$1 million for accounting LLPs and most financial advisers.
Does a higher excess reduce the premium much?
It reduces it, but less than the excess increase suggests. Insurers price PI mainly on large claims, which the excess does not affect. A higher excess works best for firms with frequent small disputes.
Why does the premium rise when I change insurer?
A new insurer may not match the existing retroactive date. Keeping that date protects past work, and some insurers price that cover higher. A broker checks the retroactive date before moving a policy.
Sources
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.