The 60-second answer: Per Section 34 of the Professional Engineers Act 1991 (numbered Section 24 before the 2020 Revised Edition of the Act), every licensed corporation (other than an unlimited corporation) and every licensed limited liability partnership supplying professional engineering services in Singapore must be insured against liability for breach of professional duty. Per the Professional Engineers Board, "the PE Act does not specify the amount to be insured." The minimum sum insured is left to the licensee's judgement, subject to compliance with section 34 and the Professional Engineers Rules.

The Sourced Detail

The legal framework

The Professional Engineers Board Singapore (PEB) is a statutory board under the Ministry of National Development. Per the PEB website, PEB is responsible for "advancing, developing and regulating professional engineering" in Singapore.

Per the Professional Engineers Act 1991 (current consolidated version on Singapore Statutes Online), individual professional engineers (PEs) are registered under Part 4 and must hold a Practising Certificate under Part 5 to do professional engineering work in Singapore. Multi-discipline corporations, partnerships, and LLPs that supply professional engineering services must be licensed under Part 6.

Section 34 - Liability Insurance

Per the PEA, Section 34:

"Every licensed corporation which is not an unlimited corporation and every licensed limited liability partnership must be insured against liability for any breach of professional duty arising out of the conduct of its business of supplying professional engineering services relating to any of the prescribed branches of professional engineering work as a direct result of any negligent act, error or omission committed by - (a) in the case of a corporation, the corporation or its directors, managers, secretaries or employees; or (b) in the case of a limited liability partnership, the limited liability partnership or its partners, managers or employees."

Note three things:

  1. The duty applies to licensed corporations and licensed LLPs, not to sole-practitioner PEs or wholly-PE partnerships (which need not be licensed under PEA per PEB Common Queries: "A partnership consisting wholly of registered professional engineers need not be licensed by the Board.").
  2. Unlimited corporations are exempt from the s.34 insurance duty (section 34 applies to a licensed corporation "which is not an unlimited corporation" and to licensed LLPs).
  3. Section 34 was numbered Section 24 before the 2020 Revised Edition of the Act, which came into operation on 31 December 2021. The section was last amended by Act 36 of 2017, in force 15 January 2018.

How much insurance is enough?

Per the PEB Common Queries page, addressing this question directly:

"For licensed limited corporations, is there a limit to the indemnity in the professional liability insurance policy which a licensed corporation has to take up? The PE Act does not specify the amount to be insured. However, the professional indemnity insurance policy must comply with section 34 of the Professional Engineers Act."

The Professional Engineers Rules 1991 require an applicant corporation to file "a certified true copy of any policy insuring the corporation against professional liability in accordance with the Act and the rules made under the Act for any period that the corporation is licensed to supply professional engineering services" - but do not prescribe a quantum.

So the limit is set by:

  • Project-by-project contractual requirements - construction contracts may require professional indemnity insurance of the types and in the amounts they stipulate.
  • Client requirements in the consulting agreement.
  • The firm's own assessment of worst-case design liability across its project portfolio.

Claims-made and retroactive cover

Per the PLUS analysis: "Crucially, professional indemnity policies are written on a claims-made basis, which means that they respond to claims that are first made against the insured during the period of the insurance."

Three implications follow:

  • Retroactive date - your policy needs to include a retroactive date covering historical project work, otherwise old project claims fall through.
  • Continuous renewal - gaps in cover create claims-made gaps in protection.
  • Run-off - when winding up the corporation, you typically need run-off cover spanning the limitation period for tort and contract claims, though latent defects can extend this further.

QPs and the section 34 trigger

Per the PLUS analysis, professional engineers in Singapore often act as "qualified persons" (QPs) under the Building Control Act 1989. QP appointments concentrate liability - a structural QP signs off on plans, accepts duties under the Building Control Act, and faces both criminal and civil exposures.

Section 34 requires cover against liability for breach of professional duty arising out of the corporation's business of supplying professional engineering services. If your licensed PE corporation undertakes QP work, check with the insurer that the policy's definition of professional services covers it.

Comparison with the Architects Act

For context, Section 24 of the Architects Act 1991 imposes the equivalent insurance duty on licensed architectural corporations and LLPs - same structure, same "Act does not specify amount" position.

What This Means for Your Business

If you operate as a licensed PE corporation (other than an unlimited corporation) or a licensed LLP, section 34 PI is non-optional. The interesting question is not "do I need it" (you do) but "how much, and in what structure."

The practical decision tree:

  • Sole-practitioner PE in own name (not licensed corporation) : section 34 doesn't apply directly to you; but you still face professional negligence exposure personally. PI on a sole-practitioner basis is sensible.
  • Wholly-PE partnership (not licensed) : section 34 doesn't apply; partners face joint and several liability. PI at the partnership level is sensible.
  • Licensed corporation (not unlimited) : section 34 mandatory. Set the limit based on largest QP responsibility you've ever signed off on, with margin for legal costs.
  • Licensed LLP : section 34 mandatory. Limit-setting same logic.
  • Unlimited corporation : section 34 does not apply (it covers a licensed corporation that is not an unlimited corporation, and licensed LLPs).

A point to check: the "design-and-build" boundary. If your PE corporation is also doing build (e.g., a small engineering firm that subcontracts works), CAR, public liability and PI policies may all sit on the same project, and professional liability is generally excluded from public liability and construction all risks policies, so PI usually has to be bought separately. Co-ordinated programme structuring matters.

Questions to Ask Your Adviser

  1. My licensed PE corporation does [structural / M&E / civil] work. What limit reflects my QP exposure?
  2. What's my retroactive date - does it cover all historical project work?
  3. If I'm winding the corporation up, what run-off term should I purchase?
  4. I'm both a PE corporation and a licensed builder under BCA - how do my PI, CAR, and PL coordinate?
  5. My biggest project carries QP responsibility - does my current limit hold up against worst-case?

Related Information

Published 3 May 2026. Source verified 3 May 2026.