Is Public Liability Insurance Compulsory in Singapore?

Updated 16 October 2026 · Written by Assureme Pte. Ltd., appointed agent of Liberty Insurance. General information, not advice.

Short answer: not by general law, often by contract

No single Singapore law makes public liability insurance compulsory for every business. That is different from work injury compensation insurance and third-party motor insurance, which are legal requirements. In practice, however, many businesses end up needing public liability cover because someone else requires it.

Where it is asked for

• Tenancy agreements: a landlord may require tenants to hold public liability cover.
• Client and main-contract terms: clients and main contractors often require sub-contractors to hold cover before starting work on site.
• Tenders: tender documents commonly list the insurances a bidder must hold.
• Licences and permits: some licences or event permits may state an insurance condition. Check the conditions of the licence you apply for.

The contract wording matters. It usually states the minimum limit and whether the other party must be named on the policy.

What it covers and what it does not

Public liability covers your legal liability if your business causes injury to a member of the public or damage to their property, plus the legal costs of defending the claim, subject to the policy. It generally does not cover your own employees, who fall under work injury compensation insurance, nor damage to your own property. For works on a construction project, contractors’ all risks insures the works themselves.

Is it worth having if nobody requires it?

A claim from a customer or passer-by can involve medical costs, repair bills and legal fees that a small business may struggle to meet. Whether to insure is your decision, but if your staff work at client premises, or the public visits yours, it is worth a conversation. We can explain the options on our public liability insurance page.

Public liability, WIC and motor: three different rules

It helps to separate three covers that people often confuse. Work injury compensation insurance for eligible employees is a legal requirement under WICA. Third-party motor insurance is a legal requirement for vehicles used in Singapore. Public liability is different: it is commonly required by contract or tenancy but not by a general law. See our WIC page and commercial vehicle page for the compulsory covers.

If you run a shop, office or F&B outlet, public liability is often one section of a wider SME package, which can also cover fire, property and contents. Ask for the sections you need and check the sum insured for each.

What to do next

1. Read the insurance clause in your lease, contract or tender.
2. Note the required limit and any parties to be named.
3. Send it to us with your trade, turnover and work address.
4. We request a quotation from Liberty. Cover starts when Liberty issues the policy after a signed proposal and payment.

Quotes are indicative and subject to Liberty Insurance’s terms, excess and exclusions. Cover starts only when Liberty issues the policy after a signed proposal and payment.