Compulsory Insurance that MCST and MC needs (Contractor All Risks, Fire Insurance, Public Liability)

There are numerous general insurance that is legally required by MCST (Management Corporation Strata Title) or MC (Management Committee) to have their landlords and tenants to have for their properties, in order to protect other property owners and themselves. Some examples are basic fire insurance for the building and structure or public liability insurance that some MCST makes it compulsory for landlords.

Beside mandatory general insurance, some insurance that is good to have are contractors all risks insurance, glass liability, etc, etc. You may find more details in this article

What is MCST?

MCST stands for Management Corporation Strata Title and refers to the management body of a building (usually a condominium or building shared with many office owners or shop owners). The management body handles the routine maintenance and caretaking of the building. Periodically, the MCST will handle annual reports, AGM (annual general meeting) and handling of pollings for renovation, refurbishing, change of designs, and enbloc affairs.

The MCST is usually a single corporate set up to manage the building or it can be a large corporation MCST managing many different buildings to pool resources and for economies of scales.

What is MC?

In many cases, the MC is a short form of referring to the MCST.

In some cases, residents refer to MC as the management council, a representative body that is elected from residents or owners of properties in the building.

Almost all affairs of daily maintenance of the building will be handled and referred to the MCST.

What are some insurance that MCST should ask property owners to protect the building and their properties

Here are some insurance that is critical for protecting the properties and MCST

  1. Fire insurance (All risks) for the structure of the building
  2. Public liability (especially for commercial building)
  3. Contractors All Risks (CAR) insurance for landlords who are renovating.

Fire insurance All Risks Insurance for MCST and building owners

A devasting fire can cause the structure of the building to be severely affected and it is going to cost a big sum of engineer fees to assess and certify the building is safe and able to operate as normal.

PMD charging fire no insurance coverage

PMD charging fire no insurance coverage

If the civil engineer finds that the building’s structural integrity is badly damaged in the fire, the building can be deemed a risk, and steps must be taken to rectify the damage. The worst scenario (not unthinkable) is that the building is a total loss and the MCST and landlords must take action to demolish the building at its costs.

This is why fire insurance all risks coverage for the building and structure is so important as the cost of such an event is high and devasting.

All HDB owners are required by law to buy fire insurance of the structure (covering only the building and not the belongings and furnishing in their own homes) precisely because they are worried of devasting events that render a building unliveable.

MCST can also request landlords to have better fire insurance coverage to cover common areas and their own private area liabilities to have peace of mind.

Public Liability policy for commercial building MCST

For many commercial buildings, the public is allowed to enter and use the facilities in the building. A public liability policy helps the MCST to answer any disastrous event that may happen to a member of the public.

A simple case would be someone falling down due to the slippery floor from a rainstorm. The person may sue the building for not managing the wet floor properly due to bad rain cover design or lack of a warning sign.

Ang Mo Kio shophouse fire disrupted business

Ang Mo Kio shophouse fire disrupted business

Other examples can be of visitor cars damaged by trees falling or items dropping from higher heights damaging the visitor’s cars.

A simple public liability policy can help answer any legal or liability case arising from public’s disputes with the MCST

Contractors All Risks to cover landlords and MCST

All buildings will have new landlords or new tenants moving in and out over the years. And any new landlords or tenants may want to do a heavy renovation or simple retrofitting of the premises.

An inexperienced renovation contractor or even an experienced one can have accidents that damage common corridors, common shared facilities or damage building pipes, wires, etc.

Renovation Contractors All Risk Package

Renovation Contractors All Risk Package

In some cases, renovation work may damage nearby neighbour’s properties and incur high hotel bills if the resident needs to live somewhere else temporarily. Some unfortunate cases have occurred where neighbours got injured and racked up high medical and hospital bills to be paid by the renovating units.

Most residential MCST now insists the renovation contractors sign indemnity forms to compensate them in the event of accidents or mishaps. However, we know that many contractors in Singapore are small businesses and would not survive a big financial setback.

The MCST would have no way to seek compensation if the business goes bankrupt. Hence the recent trend is for MCST to request for the contractor and the renovating units to purchase Contractors all risks insurance to cover the period of renovation.

You can refer here to our MCST insurance solution.

f your MCST or you need any more information, feel free to email HM consultancy at sales @ hminsg. com or whatsapp us at 82003255




General Insurance Agencies for Contractors, Architect, Interior Designers

Looking for a general insurance agency broker for your customers? If you are renovation contractors, or construction A & A contractors, architect firms or interior designers, you want an ideal insurance agent or agency to help your clients and yourself with their project coverage.

(Additional & Alterations works for construction refers to projects that alter or adds on to a current building)

Insurance coverage that your construction clients may need to buy for themselves

  • Contractors All Risks
  • Public Liability

Protection Plans that your construction company need to buy

  1. Work Injury Compensation (Compulsory by Ministry of Manpower aka MOM)
  2. Foreign Workers Medical Plan (Compulsory by Ministry of Manpower aka MOM)
  3. Performance Bonds (Usually requested by large clients)
  4. Public Liability
  5. Professional Indemnity

As long as you are dealing with construction, renovation, architect or interior designs, you may prefer to speak to a professional insurance brokerage to have professional specialist services render to your clients and you.

Work Injury Compensation and Foreign Workers Medical Plans are required.

These are compulsory insurance mandated by the government, Ministry of Manpower. You may as well get the best price and service from a broker to get better service at lower price.

Performance Bonds are very important for big clients, vendors who need assurance of quality for construction projects. You may need a professional expert to ensure performance bonds are done nicely that does not hinder your cashflow needs.

How can I get faster or instant quotes for Contractors All Risk?

Contractors who are pressed for time due to the tight schedule requested from clients may want to get their insurance cover note or cover letter fast and quick so that they can start work.

We are specialist in the construction field and we have tied up with more than a few insurers to get instant quotes and delivery of cover note so that your workers can start work and the project can proceed without delays.

You can get contractors all risk policy cover within minutes. Just email, whatsapp or call us with your details.

Commissions or referral fees for insurance on projects

We work in the long run to provide good customer services and great partnership that are win-win for all parties.

Not only do we provide affordable and competitive quotes for your clients and you, we can also provide great incentives too to the construction, renovation or interior designer firms.

We pride ourselves on finding excellent incentives for our partners to use us for the long term.

You can always reach us at our mobile phone: +65 8163 1130 (Call, SMS or Whatsapp)

You can email us at too

Do you need renovation contractors all risk insurance?

Yes, you need contractor all risk insurance for renovation because the financial amount that can be lost due to construction mistakes can be large. A simple renovation accident such as a damaged pipe or broken tiles can lead to huge financial expenses.

Even if your client may be reluctant, these benefits will shine out once he understands the benefits of preparing for business continuity for construction sites.

What are contractors all risk insurance?

Contractors All Risk or CAR insurance is a non-standard policy that covers property accidental damage and loss, third party damage or injury claims and works injury compensation to workers on site.

CAR insurance is for all construction projects, be it a simple $10,000 project or a $10m infrastructure works. You should have CAR for all BCA construction grades.

What does contractor all risk insurance cover?

  1. Property damages can mean improper construction of structures, damage that happens during renovation or retrofitting, or caused by temporary works erected on-site.
  2. Third parties damage or injury claims can refer to damage and claims suffered by neighboring residents, subcontractors etc.
  3. Work injury means injury suffered by workers, engineers, managers as well as subcontractors while on the contractor project.

Does contractor all risk insurance cover defective workmanship?

Renovation Contractors All Risk Package

Renovation Contractors All Risk Package

No, most CAR insurance does not cover construction defects or defective workmanship. You may do a request for such an add-on with your insurance broker to see if it can be catered for.

If you opt for such coverage of faulty workmanship, there is a period of time for this coverage and any defects that started after the coverage ends will not be covered.

Who needs contractors all risk insurance?

Designer, renovation contractors, engineers and A&A construction firms.

Simple renovation works for HDB flat, condos and landed houses all require contractors all risk insurance to safeguard against damage to nearby properties due to Singapore’s dense built up.

A&A (Alterations and Additional) construction projects will require such insurances to protect the clients against any third party claims or own property damages.

When you are renovating or doing small construction jobs, most of us either contractors or clients will wonder if we do need renovation Contractors All-Risk insurance. This is quite common as many contractors like to faster get the job done and skip the paper work and premiums (CAR can actually be done in Singapore instantly and fast within 1 day)

Construction Contractors All Risk Insurance

Construction Contractors All Risk Insurance

Is contractors all risk insurance expensive?

Not at all. The premium is low compared to the repairs that would have been out of your pocket if you encounter bad accidents. It is based on the job scope and size so the premiums are affordable and proportional to the project size.

If you are a contractor, you do not want a small job to be the downfall and bankruptcy of your firm. If you are a homeowner, you do not want the tiny probability that a small construction accident leads to a big financial disaster to your life.


Can you quote and start the policy in 1 day?

Yes, if you are in a rush for your client to start work, we can help you settle the CAR package in 1 day! Our insurers understand that time is money and we can produce contractors all risk policy cover letter within the same day.

Call us for general insurance quotes or whatsapp : +65 8163 1130