Which business insurance is compulsory in Singapore
Stage 1: employees on the payroll
WICA insurance pays the compensation an employer owes under the Work Injury Compensation Act. The Ministry of Manpower (MOM) sets who must be insured.
- Insure every employee doing manual work, whatever the salary.
- Insure every non-manual employee earning S$2,600 a month or less. The figure excludes overtime, bonus, annual wage supplement, incentives and allowances.
- Decide on non-manual staff earning above S$2,600. Insuring them is optional, but valid claims must still be paid by the employer.
- Buy from an MOM-designated insurer. Policies starting from 1 January 2021 must follow MOM's compulsory terms.
- Check the penalty. Failing to insure a required employee carries a fine of up to S$10,000, jail of up to 12 months, or both.
Salary reviews move staff across the S$2,600 line. A finance assistant earning S$2,500 in January may earn S$2,700 by July. Most employers insure all non-manual staff for that reason, so no one falls out of cover mid-year.
The office staff question has its own page: is WICA compulsory for office staff.
Stage 2: foreign employees on work passes
Two medical insurance duties sit on top of WICA. They cover illness and injury that are not work-related.
- Buy medical insurance for each Work Permit holder. Cover must be at least S$60,000 a year for inpatient care and day surgery.
- Note the co-payment split. For claims above S$15,000, the insurer pays 75% and the employer pays 25%.
- Check the July 2025 changes. Since 1 July 2025, premiums are age-banded at 50 and below, and above 50. Exclusions are standardised and insurers pay hospitals directly.
- Buy medical insurance for each S Pass holder before the pass is issued or renewed. MOM sets the same S$60,000 annual minimum.
- Do not recover the premium from the worker. MOM states the cost cannot be passed on.
The 25% co-payment is an uninsured exposure. For example, a S$40,000 hospital bill leaves the employer with S$6,250 of the amount above S$15,000. Some employers buy a top-up plan to close that gap.
The minimums and plan options are set out in foreign worker medical insurance minimum.
Stage 3: company vehicles
The Motor Vehicles (Third-Party Risks and Compensation) Act 1960 governs road use. Section 3 makes it unlawful to use a motor vehicle on a road without a policy covering third-party risks.
- List every vehicle the company owns, leases or hires.
- Confirm each has at least third-party cover for bodily injury to others.
- Check who may drive. A policy limited to named drivers does not respond for an unnamed employee.
- Check the vehicle's use class. A van insured for private use is not insured to carry goods for reward.
- Add own-damage cover where the vehicle's value or a finance agreement requires it. The law does not.
A company is also liable when it permits an uninsured vehicle to be used. The duty falls on the person using the vehicle and on anyone who allows that use.
Stage 4: regulated professions
Some firms must hold professional indemnity (PI) insurance as a condition of registration or licence. PI covers claims that a professional service was negligent.
- Accounting LLPs. ACRA requires PI cover at the highest of S$1 million, S$500,000 for each corporate practitioner, or 2.5 times the LLP's gross income from its last financial year. The income-based figure is capped at S$50 million.
- Licensed financial advisers. MAS sets a PI limit of S$1 million for firms with revenue up to S$5 million. Above that, the limit is the lower of 20% of gross revenue or S$10 million. Firms issuing only research reports need S$500,000.
- Other professions. Regulators and professional bodies set their own rules. A firm should check its licence conditions each year.
PI limits set by a regulator are minimums. Client contracts often ask for more.
Stage 5: contracts, leases and tenders
Public liability, property and contractors' all risks insurance are not required by statute. Contracts make them compulsory in practice.
- Read the insurance clause in each lease. Landlords usually require public liability cover, often naming the landlord as an additional insured.
- Read each customer contract. Many require public liability, PI or product liability at a stated limit per claim.
- Read construction contracts and tenders. Main contractors and project owners usually require contractors' all risks and third-party liability cover.
- Check bank facilities. A lender secured on property or stock usually requires fire or property cover with the bank's interest noted.
- Keep certificates current. A lapsed certificate can be a breach of contract even with no claim.
A contractual requirement carries its own penalty. A business without the required cover may lose the contract, pay damages, or face the claim uninsured.
Checklist
- Count employees doing manual work and insure all of them under WICA.
- Count non-manual employees earning S$2,600 a month or less and insure them under WICA.
- Decide whether to insure non-manual staff above S$2,600, and record the decision.
- Confirm the WICA insurer is MOM-designated and the policy follows MOM's compulsory terms.
- Buy medical insurance of at least S$60,000 a year for each Work Permit holder.
- Buy medical insurance for each S Pass holder before issue or renewal of the pass.
- Confirm no worker pays any part of the medical insurance premium.
- Confirm every vehicle has third-party cover, the right use class and the right driver clause.
- Check whether the firm's regulator requires PI insurance, and at what limit.
- List every insurance clause in leases, customer contracts, tenders and bank facilities.
- Match each clause to a policy, a limit and an expiry date.
- Diary every renewal date at least 30 days ahead.
Frequently asked questions
Is public liability insurance compulsory in Singapore?
No statute requires a general business to buy public liability insurance. Leases, customer contracts and construction contracts usually require it at a stated limit. In practice most businesses with premises or site work hold it.
Do I need WICA insurance for office staff earning above S$2,600?
Insuring them is optional under MOM's rules. The employer must still pay any valid WICA claim, insured or not. Many employers insure all staff so a salary increase does not leave someone uninsured.
Which professions must hold professional indemnity insurance?
Accounting LLPs must hold PI under ACRA's rules, and licensed financial advisers under MAS rules. Other professions are set by their own regulator or professional body.
What happens if a contract requires insurance the law does not?
The contract term binds the business even though the law does not. Without the cover, the business may be in breach, lose the contract or pay the claim itself. A broker matches each contract clause to a policy and limit.
Sources
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.