Public Liability Insurance in Singapore

5 minute read

Many companies come into contact with the general public, and that inevitably presents various risks. For instance, a customer may slip and fall on a wet floor even when the business puts up a warning sign that is easy to see.

The bottom line is that a business can almost always end up with a legal battle coming from someone even when there is no good reason for a lawsuit. But fortunately, being insured can help you avoid huge costs and extensive entanglements associated with legal liabilities arising from various situations.

If you run business activities in Singapore, public liability insurance is something you need to learn about.



What is Public Liability Insurance in Singapore?

Singapore public liability insurance covers a business’s legal liability for bodily injuries or accidental damage inflicted on third parties’ property when carrying out your business operations.

This includes legal costs which are incurred with the insurer’s consent.

Public liability insurance in Singapore is very important if the general public interacts with your business in any manner.

Accidents that may happen range from simple slips and falls to accidents during goods delivery, and so on. Also, sometimes clients get injured at the company premises, and there are situations when employees get injured when working away from the office.


Who needs it?

Keep in mind that Singaporean laws stipulate specific requirements regarding insurance for various types of businesses.

Public liability insurance is mandatory for businesses dealing with:

  • Contracting
  • Renovations
  • A&A
  • Construction
  • Commercial affairs
  • Private residential properties

Customers may also request to be named as principals in their contractor’s public liability policy to cover their vicarious liability. This allows customers to seek indemnity under their contractor’s policy if there is a claim against the customer which arises as a result of the contractor’s negligent act.

On top of that, this insurance type is also required by event organizers/ managers (Event Liability Insurance) to keep them safe from lawsuits and claims made related to accidental bodily injury of others, and property damage to the venue or external parties.

Venue operators will require proof of event liability insurance before the event can even be allowed to take place at their premises.

Last but not least, landlords (commercial leases) are often requiring their tenants to take up a public liability insurance policy that protects both the property owner and the tenant.


What does Public Liability Insurance provide?

Public liability insurance (PLI) usually covers the following:

  • Property damage to a third party’s property
  • Bodily injury
  • Legal costs

Remember, this kind of coverage is only valid for your business property. If an employee interacts with clients somewhere else (their home, public spaces, etc.), the insurance company most likely won’t provide any assistance.

As additional features, you may also want to check policy owners protection scheme, insurance issued by a Singapore deposit insurance corporation, work injury compensation.


Is Public Liability Insurance compulsory in Singapore?

Public liability insurance is often mandated for various business types in Singapore. This usually happens when your field of work involves a lot of risks.

If your field of work involves a risk of damaging someone else’s property or causing injuries to other people, then your clients may require you to carry public liability insurance as part of your contract.

These are some business activities and industries where PLI is compulsory:

  • Leasing a commercial space from a landlord
  • Engineering and inspection services
  • Manpower supply
  • Construction
  • Interior renovations and decorations

Do you need Public Liability Insurance?

You should consider your business type and the nature of interactions your company has with the public.

  • Do you have customers coming to your place of business regularly?
  • Do your employees work on client’s sites and offices?
  • Do your clients require you to have a public liability policy before they sign a contract with you?

If the answer to any of the above questions is “Yes”, then you will need public liability insurance


What happens if I don’t have it?

There are no legal penalties for being uninsured. However, if someone sues your company and you have no insurance, you will have to undertake and pay for all legal battles.

If the claim against your business is successful, you will also have to pay a hefty settlement along with legal fees and solicitor fees.


Types of liability insurance

There are various other types of insurance apart from PLI, that includes:

  • Product Liability
  • Directors & Officers Liability
  • Commercial General Liability
  • Professional Indemnity Insurance
  • Cyber insurance

To assess your cyber security and how else you can strengthen it, download our free insurance checklist here!


Public liability insurance cost

There is no fixed price when it comes to insurance policies. Different insurance companies have different price plans and policy packages.

It is best to come up with a few options and then compare them with each other. See what each has to offer and compare their prices to get the best value for your money.

Keep in mind that in times of crises or in the event of a global pandemic, many companies look for ways to reduce their insurance costs. This is usually done by cutting additional (non-compulsory) features of an insurance policy package.

For instance, various companies opt to take away employee benefits from an insurance policy (which only cover the most basic features), in order to save some money.

Choosing the right insurance company

All insurance companies in Singapore are approved by the (MAS). Here are the evaluation points for you to choose the right public liability insurance firm your business

  • Eligibility: Check if your organization meets the eligibility criteria set by insurance companies
  • Cost: Compare the plan cost and choose the one that fits into your company budget
  • Coverage: It’s wise to pick the insurance company that provides maximum coverage for uncertain losses such as business interruption, product liability, third party liability, employee injury compensation, transit coverage, machinery breakdown and more

Claim Process

Not all companies have the same processes. But in general, in case of an accident, you shouldn’t admit to liability first and then notify your insurance provider.

Instead, make a report first (especially if the police are involved) and then make a claim.

When submitting a liability claim, you will most likely need the incident report, police report (if applicable), clear photographic evidence, CCTV footage, repair quotations, purchase invoice of damaged property, and third-party claimant’s legal documents.

Wrap up

If you are ready to protect your business the best way possible, then public liability insurance is the right choice for you.

Take a look at Sleek’s corporate insurance plans that will keep you safe from unexpected expenses and costs. That way, you can enjoy growing your business operations and ensure a sustainable future while we protect your company. Talk to our sales team to get started!

You might be interested in reading about:


There are four types of liability insurance in Singapore, General Liability, Directors & Officers Liability, Professional Liability and Work Injury Compensation.

Public Liability Insurance is not mandatory under Singapore Law, but it’s worth purchasing as it helps you and your employees enjoy peace of mind.

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