A newly incorporated Singapore company with no employees, no premises and no vehicle needs no insurance at all — nothing is compulsory yet. Obligations arrive with milestones: your first hire triggers WICA work injury insurance (and FWMI if the hire holds a Work Permit or S Pass), your first premises usually triggers landlord-required public liability and property cover, your first vehicle requires motor insurance by law, and your first serious client contract often demands professional indemnity. Insure at each milestone, before the milestone — not after.
Cover by milestone
Nothing on this page is compulsory until a milestone makes it so. This is the shape of the path, with the detail in the sections below.
| Milestone | What becomes necessary | Why |
|---|---|---|
| Incorporation — no staff, no premises | Nothing compulsory; professional indemnity worth considering if you sell advice or services | PI is claims-made, so buying early sets an earlier retroactive date for everything you do from then on |
| Your first employee | WICA work injury insurance, for any manual worker at any salary and any employee earning S$2,600 a month or less | Compulsory under WICA — going without carries a fine of up to S$10,000, up to 12 months’ jail, or both |
| Your first premises | Public liability, plus cover for your own fit-out, contents and stock | Almost every commercial lease requires it, and the landlord’s building policy does not cover your property |
| Your first vehicle | At least third-party motor liability | Compulsory under the Motor Vehicles (Third-Party Risks and Compensation) Act — the vehicle cannot be registered or driven without it |
| Your first client contract | Whatever the insurance clause specifies — commonly professional indemnity, public liability, or both | Certificates are routinely a condition of starting work or of being paid |
| Your first foreign worker on a Work Permit or S Pass | Foreign Worker Medical Insurance, with at least a S$60,000 annual claim limit | A separate MOM requirement on top of WICA — neither one substitutes for the other |
Confirm current requirements with MOM and the relevant authority before relying on any summary; thresholds and limits do change.
Milestone 0: incorporation, no staff, no premises
At this stage nothing is legally required. If you're a solo founder working from home selling advice or services, professional indemnity is worth considering early — PI is written on a claims-made basis, so cover only responds to claims made while a policy is active, and starting early sets a favourable retroactive date for everything you do from then on. Indicatively, small-firm PI starts from around S$300–800 a year; actual premiums vary, so get a quote.
Founders raising outside capital sometimes also consider directors' and officers' (D&O) liability cover at this stage, especially where investors sit on the board.
Milestone 1: your first hire — WICA (and possibly FWMI)
The moment you employ anyone doing manual work — at any salary — or any employee earning S$2,600 a month or less, WICA work injury insurance becomes compulsory. Non-compliance carries a fine of up to S$10,000, up to 12 months' jail, or both, and an uninsured injury claim is paid from company funds — up to S$346,000 for total permanent incapacity under the limits for accidents from 1 November 2025.
If the hire is a Work Permit or S Pass holder, you must also buy Foreign Worker Medical Insurance with at least a S$60,000 annual claim limit — a separate MOM requirement in addition to WICA. Arrange both before the employee's first day.
Milestone 2: your first premises — what the landlord requires
Signing a lease rarely triggers a statutory insurance duty, but almost every commercial lease contains insurance clauses. Typically you'll be required to carry:
- Public liability — often at S$1 million or more, naming the landlord as an interested party. Indicatively from around S$100–400 a year per S$1 million of cover.
- Property/contents cover for your own fit-out, equipment and stock — the landlord's building policy does not cover your things. An office package runs indicatively from around S$200–500 a year.
Read the lease's insurance clause before you sign, and hand it to whoever quotes you — the certificate needs to match the clause, including any requirement to note the landlord's interest.
Milestone 3: your first vehicle — motor insurance by law
Any vehicle used on Singapore roads must carry at least third-party liability cover under the Motor Vehicles (Third-Party Risks and Compensation) Act — you cannot register or drive it without insurance. Most new businesses buy comprehensive cover for a financed or valuable vehicle; commercial motor premiums run indicatively around S$1,000–2,500 per vehicle per year depending on vehicle type, usage and driver history. If staff use their personal cars for work, check that their private policies permit business use.
Milestone 4: your first client contract — read the insurance clause
Corporate and government clients routinely require vendors to hold specified insurance before work starts — most often professional indemnity for advisory, design and IT work, and public liability for anything performed on the client's site. The contract will state minimum limits and may require certificates as a condition precedent to payment.
Two practical points: buy PI before signing (claims-made cover won't respond to work done before your retroactive date), and never inflate your declared capabilities or history to win cover — misdeclaration is the cheapest way to buy a policy that won't pay.
Frequently asked questions
What insurance does a new company in Singapore need?
A new company with no employees, premises or vehicles needs no insurance by law. Requirements arrive with milestones: WICA work injury insurance at your first qualifying hire, FWMI for any Work Permit or S Pass holder, third-party motor insurance for any vehicle, plus whatever your lease and client contracts demand — usually public liability and sometimes professional indemnity.
Do I need insurance before hiring my first employee?
Yes, if the employee does manual work or earns S$2,600 a month or less — WICA insurance must be in place from their first day, and skipping it is an offence carrying up to a S$10,000 fine and/or 12 months' jail. If the hire holds a Work Permit or S Pass, you also need FWMI with at least a S$60,000 annual claim limit before they start.
Does a home-based business need insurance in Singapore?
Not by law, if you have no employees or vehicles. But a home-based business selling advice or services still faces professional liability, and clients may require proof of PI before engaging you. Home contents policies generally exclude business equipment and business liability, so don't assume your personal cover extends to the company.
When should a startup buy professional indemnity insurance?
Before signing your first client engagement — and arguably earlier. PI works on a claims-made basis with a retroactive date, so work done before you first bought cover is typically not protected. Starting early, even with a modest limit, protects your whole operating history as the business grows.
What insurance do landlords require from new tenants?
Most Singapore commercial leases require the tenant to carry public liability insurance — commonly S$1 million or more — and often property cover for the tenant's own fit-out and contents, sometimes with the landlord's interest noted on the policy. The exact requirements are in the lease's insurance clause; match your certificate to it exactly.
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