Insurance for Construction & Engineering

Insurance for Construction & Engineering Companies

Construction is one of the most insurance-intensive industries in Singapore. Between MOM's mandatory WICA requirements, contractual insurance obligations from developers and government agencies, and the inherent physical risks of building sites, contractors need multiple layers of coverage to operate safely and legally.

The stakes are high. A workplace fatality can result in MOM prosecution, project shutdowns, and compensation claims exceeding $200,000. Damage to partially completed works — from fire, storm, or subsidence — can cost millions. Third-party claims from adjacent property owners or injured passers-by add another layer of exposure. Without the right insurance, a single incident can threaten the viability of your entire business.

Common Risks

Worker safety incidents. The construction sector accounts for the highest number of workplace fatalities and injuries in Singapore every year. Falls from height, being struck by moving objects, and machinery incidents are the most common causes. WICA insurance is mandatory, but ensuring adequate coverage limits — and fast claims processing — is equally important.

Damage to contract works. Whether it's a fire on a half-completed building, flood damage to earthworks, or accidental destruction of installed M&E systems, damage to works in progress represents a major financial exposure. CAR insurance covers the reinstatement cost, including materials, labour, and professional fees.

Neighbouring property damage. Piling, excavation, demolition, and heavy vehicle movements can all affect adjacent structures. Cracks in neighbouring buildings, subsidence, and damage to underground services are common sources of third-party claims. Public liability insurance with adequate limits is essential — and most main contractors require it as a minimum condition.

Equipment and plant breakdown. Construction relies on heavy equipment — cranes, excavators, generators, and scaffolding systems. Breakdown, theft, or damage to plant can halt a project and create significant replacement costs. Plant and machinery insurance covers these assets on and off site.