Business Insurance in Singapore

For most businesses, unexpected events with large or sudden losses can have a catastrophic impact on them; sometimes even resulting in financial insolvency. This is why it is important to have Business Insurance, otherwise known as Commercial or Corporate Insurance, to cover the risks that your business is exposed to, no matter how small.

Business Insurance can be for all companies, regardless of the size. You can be a large corporation or a two-person outlet- there will always be suitable coverage for you. The various types of coverage can help to cover the cost of reinstatement of damaged property, loss of income, compensation to a third party for claims made against your business, as well as all legal costs associated.

Different Kinds of Business Insurance

Business insurance includes various types like public liability, professional indemnity, property, worker injury compensation, cyber liability, and Directors' and Officers' insurance, each protecting against specific risks and ensuring business continuity and financial stability.

Type of InsuranceDescription Key Points 
Public Liability Insurance
  • Protects against claims of property damage or personal injury by third parties due to business activities.
  • Covers legal costs and compensation claims if found at fault.
  • Essential for businesses interacting with the public.
  • Safeguards against unforeseen financial impacts.
Work Injury Compensation Insurance 
  • Mandatory in Singapore for manual workers and non-manual workers earning ≤ $2,600/month.
  • Covers medical expenses, medical leave wages and permanent incapacity or death, for job-related injuries or illnesses.
  • Protects employees from unexpected medical costs.
  • Helps employers manage financial risks of workplace injuries.
Property Insurance
  • Provides coverage for physical business assets (buildings, equipment, inventory, etc.) against damage or loss due to various causes like fire, natural disasters, or theft.
  • Crucial for protecting physical capital and maintaining operational continuity.
Professional Indemnity Insurance
  • Covers legal costs and expenses for alleged inadequate advice or services causing client losses.
  • Also covers damages or costs awarded.
  • Important for businesses providing professional services or advice (e.g., consultants, lawyers, accountants).
Directors and Officers Insurance
  • Protects personal assets of directors or officers sued while performing their roles.
  • Covers legal fees, settlements, and other costs.
  • Provides peace of mind for those in decision-making positions in a litigious environment.
Cyber Insurance
  • Essential for most businesses due to increasing cyber threats.
  • Covers liability for data breaches involving sensitive customer information and costs associated with cyber incidents, like data restoration and computer system repairs.
  • Increasingly important for safeguarding against cyber threats and managing the financial impacts of data breaches.
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Types
Do I legally need Business Insurance?
Cost
How much does it cost?
Types
What types of SME Insurance packages are there?
Cost
Are there other types of insurance a business needs?

Is Business Insurance a Legal Requirement in Singapore?

This varies depending on the type of industry your business is in. While there is no universal list of must-have Business Insurance, here is a list of the most common types of coverage:

  • The Ministry of Manpower has mandated that all manual employees, regardless of salary level and non-manual employees earning below $2,600 will have to have Work Injury Compensation Insurance.
  • If you have an office or store in a commercial building, the landlord will usually require you to get Public Liability Insurance as part of your insurance plan.
  • Professionals such as accountants, lawyers, architects, and doctors require Professional Indemnity Insurance as part of their trade in order to renew their license to practise.
  • Entering into corporate contracts with other parties sometimes requires you to get Product Liability, Professional Indemnity, and Public Liability Insurance.

The above list is not exhaustive, and each business needs to know the regulatory environment in which they operate and consult with an insurance broker to understand their risk exposure better.



Choosing the Right Insurance of Business for Long-Term Protection

Choosing the right business insurance is key to protecting your company from unexpected risks, especially in Singapore. Here's what to consider when evaluating your corporate insurance:

Start by identifying which areas need protection. This could include property, equipment, liability, or employee-related risks.
Select business insurance in Singapore that can adapt as your operations expand, ensuring consistent and relevant coverage.
When insuring a company, it's important to partner with insurers who understand the local market and your industry. Whether you're covering office space, commercial vehicles, or digital assets, choose a provider that offers tailored solutions.
Ensure your policy addresses key exposures such as asset damage, business interruption, and third-party liability. Consider cyber insurance to guard against growing digital threats.
A reliable insurer can help align your corporate insurance with your long-term plans, offering guidance that brings clarity and peace of mind.

With the right approach, you're not just managing risk, you're building a more secure foundation for your business in Singapore.

Common Factors That Affect the Cost of Business Insurance

The cost of the Business Insurance is usually dependent on a few common factors:

Nature of Business:

Nature of Business:

Is the nature of your business high or low risk? Your property and liability risk could be higher and thus require a higher level of coverage.

Revenue Turnover:

Revenue Turnover:

Higher revenue equals more products sold and more customers, and thus more exposure to risk.

Number of Employees:

Number of Employees:

The more employees you have, the more workplace risk.

Risk Location:

Risk Location:

Is the property in an industrial or commercial area, where injuries are more likely?

History of Claims:

History of Claims:

The number of past claims your business has made will invariably lead to higher premiums.

How Business Insurers Support Different Industries

Choosing the right business insurance starts with recognising the risks specific to your industry. Business insurers typically offer core coverage such as Property All Risk, Public Liability, and Work Injury Compensation. Beyond these essentials, each sector presents unique exposures that require more specialised protection.

For instance, retail businesses often need insurance that covers inventory, theft, and customer-related incidents. The food and beverage (F&B) sector may require liability coverage for food safety, hygiene, and service risks. In manufacturing, policies often extend to cover equipment, worker safety, and potential disruptions in production.

A business insurer familiar with your industry can help ensure that your coverage not only meets regulatory requirements but also addresses operational risks that are specific to your line of work.


IndustryRisksEssential Insurance Types
Retail Sector
  • Property or inventory damage due to fire, natural disasters, etc.
  • Theft
  • Liability Issues
  • Property insurance for physical store protection
  • Cyber insurance to protect against data breaches and cyber-attacks, especially for businesses with a strong online presence
  • Also consider: Insurance for goods in transit, crucial for businesses with significant merchandise shipping and receiving activities.
Food and Beverage
  • Food safety and the risk of foodborne illness
  • Employee safety
  • Property risks
  • Liability insurance to cover potential claims from foodborne illnesses
  • Property insurance for physical location, kitchen equipment, and dining areas
  • Also consider: Business interruption insurance to address loss of income during sudden closures due to damage within the premises.
Manufacturing Industry
  • Equipment malfunctions and breakdowns
  • Employee safety
  • Product liability issues
  • Equipment breakdown insurance for machinery repair or replacement costs
  • Work injury compensation insurance for job-related injuries or illnesses
  • Goods-in-transit insurance for transportation risks of raw materials and finished products
  • Also consider: Product liability insurance to protect against claims from defects or malfunctions in manufactured products.

Guide to Insuring a Company

When insuring a company, the first step is to assess its unique risks and requirements. Every business faces specific challenges that may affect its operations, finances, or reputation. A clear understanding of these risks helps in selecting the right corporate insurance coverage.

Here's the way to get started:

Identify potential risks

Consider the nature of your business. A tuition centre may need public liability insurance to cover accidents during lessons, while a financial advisory firm might require professional indemnity insurance for claims related to errors in advice.

Evaluate cyber risks

With growing reliance on digital tools, cyber insurance is important for protecting sensitive data and guarding against cyber threats.

Consider business size and structure

Smaller businesses may focus on essential coverage such as property or employee-related insurance. Large companies often require more comprehensive policies that safeguard assets, staff, and international operations.

Each business is different, and the right corporate insurance plan should be tailored to fit its profile.




How Commercial Insurance Supports Business Growth in Singapore

Having commercial insurance in place gives businesses the credibility needed to secure contracts with larger clients. Many corporate and government partners require proof of insurance before working together, helping insured businesses expand their opportunities.
Insurance coverage cushions the financial impact of unexpected events such as property damage, legal claims, or business interruptions. This stability allows companies to maintain operations and focus on long-term growth.
Offering coverage such as work injury compensation shows a commitment to employee welfare. This can improve staff retention and morale, reducing turnover and hiring costs.
For small businesses, insurance has made a tangible difference in getting back on their feet after disruptions. In some cases, coverage has supported recovery from fire damage or theft, while in others, it provided the confidence needed to open new outlets or expand services.

Contact us to find the right insurance solution for your business.

Let eazy Simplify Your Business Insurance Search

At eazy, we specialise in helping Singapore companies compare business insurance options with clarity and confidence. Our platform is built to support businesses of all sizes in navigating the insurance landscape with ease. Here's how we do it:

Customised Recommendations

Customised Recommendations

We take the time to understand your business needs and tailor insurance suggestions accordingly—no generic listings, just options that make sense for your company.

Transparent Quotes

Transparent Quotes

Compare prices and coverage details side by side, with no hidden fees or fine print. Our platform ensures clarity at every step.

Access to a Range of Leading Insurers

Access to a Range of Leading Insurers

We partner with various well-established insurers in Singapore, offering a wide selection of plans so you can make informed decisions with confidence.

Contact us today to find a business insurance solution that works for you.

Frequently Asked Questions

About Business Insurance In Singapore

  • Business property insurance covers the physical assets of your business. This includes the building, equipment, inventory, and furniture. It protects against damages caused by fire, theft, vandalism, or natural disasters. Additionally, some policies may cover the loss of income if your business is forced to shut down temporarily due to a covered event. At eazy Insurance, we help you compare insurance in Singapore to find the best coverage that suits your business’s unique needs.
  • For a shop, you’ll need a combination of insurance coverages to protect against various risks. The essentials include business property insurance to cover physical assets, public liability insurance to protect against claims of injury or damage made by third parties, and employee-related coverages if you have staff, such as workers’ compensation insurance. Depending on your operations, you may also want to consider coverage for stock or business interruption. As an experienced Singapore insurance broker, eazy Insurance can help tailor a plan that meets all your shop’s requirements.
  • In fire insurance, “occupancy” refers to how a building or property is being used. The type of occupancy, whether it’s residential, commercial, or industrial, can influence the risk assessment and premium rates of the fire insurance policy. For example, a building used as a factory may have a higher fire risk compared to a residential home. eazy Insurance can assist in finding the right fire insurance based on your property’s occupancy type.
  • The cost of business insurance in Singapore depends on several factors, including the size and type of business, the level of coverage required, and the insurer. Generally, SME business insurance packages in Singapore can range from a few hundred to several thousand dollars per year.

  • There are several factors to consider when choosing an SME business insurance provider in Singapore:

    • Reputation: Choose an insurer with a good reputation in the industry and a track record of providing quality insurance products and services.
    • Customer Service: Look for an insurer that provides excellent customer service and support. This will help ensure that you receive the assistance you need when you have questions or need to file a claim.
    • Coverage Options: Choose an insurer that offers a variety of coverage options that meet your specific business needs.
    • Claims Handling: Look for an insurer that has a streamlined and efficient claims handling process. This will help ensure that your claims are handled promptly and fairly.
    • Pricing: While pricing shouldn't be the only factor you consider, it is important to choose an insurer that provides competitive pricing for their products and services.
    While it is possible to select an SME business insurance provider on your own, seeking assistance from an insurance broker in Singapore can be beneficial. An insurance broker can help you navigate the complex world of insurance products and services and provide expert guidance on which policies best suit your business needs. They can also help you compare pricing and coverage options from multiple insurance providers to ensure that you get the best value for your money.

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