Industries / Construction
Construction Company Insurance in Singapore
Construction is among the most heavily insurance-regulated sectors in Singapore. Project owners and main contractors impose contractors all risk and public liability by contract; the BCA and government tenders require performance bonds; and MOM makes work injury compensation and foreign worker medical insurance mandatory for the large Work Permit workforce.
Essential cover
Covers the works, materials and plant on site against physical loss or damage — almost always required by the project owner or main contractor before you can start.
Mandatory under the Work Injury Compensation Act 2019; construction is a high-risk occupation class with correspondingly higher rating.
MOM requires the prescribed medical insurance for every Work Permit and S Pass worker — central to a construction headcount.
Commonly added
BCA and statutory-board tenders routinely require a performance bond (commonly a percentage of the contract sum) as a tender or award condition.
Third-party injury and property damage around the site — required by most main-contractor sub-contract terms.
Sudden breakdown of plant and machinery essential to the programme.
What is statutory vs contractual
Work injury compensation (WICA) and MOM foreign worker medical insurance are statutory. Contractors all risk, public liability and performance bonds are imposed by the project contract, the BCA or the tendering authority rather than by statute, but are effectively mandatory to win and run the work.
For indicative premium ranges by cover, see the business insurance cost guide, or browse every cover on the business insurance hub.
Frequently asked questions
What insurance does a construction company need in Singapore?
Work injury compensation and foreign worker medical insurance are statutory. Contractors all risk and public liability are required by virtually every project contract, and BCA / government tenders usually require a performance bond. Larger firms add machinery breakdown and, where they advise on design, professional indemnity.
Is a performance bond insurance?
A performance bond is a surety instrument, commonly issued by an insurer or bank, that guarantees the contractor will perform. It is required by many BCA and statutory-board tenders, typically as a percentage of the contract sum, and is separate from your contractors all risk and liability cover.
Is work injury compensation mandatory on construction sites?
Yes. The Work Injury Compensation Act 2019 requires cover for all manual workers regardless of salary and for non-manual employees at or below the salary threshold. Construction work is manual, so cover is required for the site workforce.