Guide
Professional Indemnity Insurance in Singapore
· Last reviewed 17 October 2026
Professional indemnity (PI) insurance, also called professional liability or errors and omissions (E&O) insurance, should be compared against the services the business actually provides and the liability those services create. Give the provider a clear description of the work, clients and contracts. Check the selected wording, dates and reporting conditions instead of assuming public liability covers professional mistakes.
What exposure is professional indemnity intended to address?
AIG’s Financial Lines overview describes professional indemnity as protection for professionals against financial loss arising from negligence in providing services. That is a broad product description. The actual insured services, claims trigger, exclusions and limits require the proposed policy documents.
SourcesAIG Singapore
Which professions must hold professional indemnity insurance?
Even where PI is not compulsory, read the insurance clause in each client contract before you sign. It may set a minimum limit, a period of cover after the work ends, or both.
| Profession | Requirement |
|---|---|
| Lawyers | Required under the Law Society scheme: at least S$1 million per claim for sole proprietorships and partnerships, S$2 million for law corporations and LLPs |
| Accounting LLPs | Required, with a minimum based on the firm's partners and gross income |
| Licensed corporations of professional engineers | Required to be insured against professional liability; the Act sets no minimum amount |
| Estate agents | Required, with minimum cover rising with the number of salespersons |
| Licensed financial advisers | Required, with limits MAS sets by type of adviser and revenue |
| Management, IT and other consultants | No general legal requirement, but a client contract or tender can still require it |
SourcesLaw Society of SingaporeAccounting and Corporate Regulatory AuthorityProfessional Engineers BoardCouncil for Estate AgenciesMonetary Authority of Singapore
How specific should the service description be?
List the services you perform, who performs them and where the clients and projects are located. Include material subcontracting, design, advice, implementation or ongoing-support work rather than relying only on a short industry label.
Illustrative example: a consultancy begins by giving advice, then takes on software implementation and managed support. Ask whether those new activities are accepted. Do not assume an older professional-services description automatically follows the business as it changes.
What should be compared in two proposals?
| Area | Question to ask |
|---|---|
| Insured services | Does the description include the actual work and relevant entities? |
| Claim and notification trigger | When must the claim or circumstance arise and be reported? |
| Past work | What retroactive date or prior-work condition applies? |
| Territory and jurisdiction | Are relevant clients, contracts and proceedings within scope? |
| Defence costs | How are they handled relative to the limit? |
| Contractual liability | What does the policy exclude or require confirmation for? |
| Limits and excess | What applies per claim and in aggregate? |
Should a client contract be shared before buying?
Provide the relevant insurance and liability clauses for review through the agreed process. A contract may require a limit or wording that the proposed policy does not satisfy. Do not assume that accepting a client’s indemnity clause makes the insurer responsible for it.
If work continues after the policy expires or the business stops trading, ask what continued or run-off arrangements may be needed. This guide does not establish one reporting rule for every professional indemnity product.
What should the internal escalation process do?
- Route complaints and potential claims promptly to the designated owner.
- Preserve contracts, correspondence, deliverables and relevant version history.
- Check the policy’s notification and consent conditions.
- Avoid making coverage promises or settlements without the required review.
- Record the insurer’s acknowledgement and next action.
Questions
Does public liability automatically cover negligent advice?
Do not assume that. Define the professional services and review the relevant professional indemnity wording.
Can I change insurer without reviewing earlier work?
Check retroactive dates, continuity, notification and any known circumstances before a change. A new premium comparison alone does not answer those questions.
Sources for this page
- Requirements for setting up an accounting LLP
Relevant section: Professional indemnity insurance
Page updated 29 January 2026. Accounting LLPs must be covered by professional indemnity insurance.
- Financial Lines solutions
Relevant section: Professional Indemnity
Official range description, not a quotation or a complete policy wording.
- Apply for an estate agent licence
Relevant section: Professional indemnity insurance
Page updated 1 October 2026. Estate agents must hold professional indemnity insurance; minimums rise with the number of salespersons.
- Professional Indemnity Insurance Scheme
Relevant section: Minimum cover
Undated scheme page. S$1 million per claim for sole proprietorships and partnerships, S$2 million for law corporations and LLPs.
- Financial adviser's licence
Relevant section: Professional indemnity insurance
Page updated 4 September 2026. Licensed financial advisers must hold PII with limits that vary by type and revenue.
- Licensing requirements for licensed corporations
Relevant section: Insurance against professional liability
Page updated 6 April 2026. The PE Act does not specify the amount to be insured.