Public Liability Insurance

What public liability insurance covers

Public liability insurance covers your legal liability if your business accidentally injures a member of the public or damages their property, and the legal costs of defending the claim, as set out in the policy. Typical examples are a customer slipping in your shop, or a contractor’s work damaging a client’s property. It does not replace insurance for your own staff.

What it does not cover

Public liability is for claims by third parties. It generally does not pay for injury to your own employees, which is dealt with under work injury compensation insurance. It also does not cover damage to your own property, which belongs under property or SME package cover, or the contract works themselves, which contractors’ all risks addresses. Check your policy wording for the full list of exclusions.

Who is asked for it

Singapore has no general law requiring every business to hold public liability cover (see our guide on whether it is compulsory). In practice it is often a condition of a tenancy, a client contract, a main contractor’s sub-contract terms or a tender. Contractors, shops, offices, service companies and F&B outlets commonly carry it. Read the insurance clause in your contract: it usually states the minimum limit and whether the other party must be named on the policy.

Choosing a limit

The limit is the most the insurer will pay for a claim, and it should match what your contract or landlord requires and your own worst-case exposure. If you do small renovation or fit-out jobs, tell us the typical contract value and the work you do on site, and we will ask Liberty to quote a limit that meets the contract wording. We do not publish premiums, because they depend on your trade, turnover and claims record.

Liberty’s SME package for small businesses includes public liability as one of its sections; see our SME package page.

Examples of when public liability responds

Public liability is designed for everyday accidents. A visitor trips over a cable in your office; a delivery person is hurt on your premises; a contractor’s tool falls and damages a client’s equipment. Each could lead to a claim against your business. Whether a particular claim is covered depends on the policy wording, the limit and any exclusions, so we explain these when we send the quotation rather than promising an outcome.

What to prepare for a quote

• Company name and UEN
• Your trade or business activity, and where you work (own premises, client sites or both)
• Annual turnover or typical contract value
• The limit required by your contract or landlord, and a copy of the insurance clause if you have one
• Any past claims

After you accept the quotation, Liberty issues the policy once the proposal is signed and payment is made. We can then send you the certificate you need for the tender or tenancy.

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.