What is Public Liability Insurance?
Public liability insurance is a type of commercial insurance designed to protect businesses of all sizes against claims if a third party - such as customer, supplier or a member of public suffers injury or property damage because of the business' negligence.
This type of business insurance is essential as it helps cover expenses related to public liability claims. For instance, if someone slips and injures themselves on the business premises, public liability insurance can cover legal fees and compensation costs. Without this insurance, these costs could place a significant financial burden on your business, as you would be responsible for covering them out of pocket.
Is Public Liability Insurance Compulsory in Singapore?
While Public Liability Insurance isn't legally required for all businesses in Singapore, it is strongly recommended—particularly for businesses that engage with the general public.
Although there's no regulation mandating coverage, certain industries and government contracts may require businesses to have the business insurance in place before they can start operations or be awarded specific projects such as:
Construction
Renovation
Engineering
Events
Government Tenders
What’s Covered & Not Covered
- Injury to Third Parties
- Property Damage
- Legal Fees
- Medical Costs
- Injuries to employees (Covered by WICA insurance)
- Professional Negligence (Covered by Professional Indemnity Insurance)
- Deliberate acts of harm
- Damage to your own property
Frequently Asked Questions
What types of businesses need commercial insurance?
All businesses, regardless of size or industry, should have commercial insurance. Whether you’re a startup, SME, or large enterprise, commercial insurance helps protect your business from unexpected events like property damage, legal liability, employee injuries, or operational interruptions. From retail shops and restaurants to construction firms and tech companies, business insurance ensures that your business can recover and continue operating smoothly in the face of risk.
What is the difference between personal and health insurance?
Personal accident insurance is a type of insurance that offers financial support if a person suffers injuries, becomes disabled, or passes away due to an accident. It generally includes coverage for lost income, hospital bills, and rehabilitation expenses following an accident. In contrast, health insurance has a broader scope. It encompasses a wide range of medical expenses related to illnesses, preventive care, surgeries, hospital stays, and outpatient treatments.
How do I choose the right insurance for myself or my business?
Choosing the right insurance involves understanding your:
- i. Personal or business risks
- ii. Budget and coverage priorities
- iii. Existing policies to prevent duplications
- iv. Industry specific needs
At ANDA, we offer free consultations to assess your situation and recommend tailored solutions that ensure proper protection without unnecessary cost.
Contact us for policy quotation, comparison and unbiased advice now!