Every main market makes some insurance compulsory for employers and vehicle users, and some professions must hold professional indemnity cover. The forms differ: the UK requires private employers' liability insurance, Germany covers employees through statutory accident insurance funded by employers, Singapore requires work injury and foreign worker medical insurance, and Saudi Arabia ties employer healthcare duties to the Cooperative Health Insurance Law.
Employee injury cover
A UK employer needs employers' liability insurance of at least £5 million from an authorised insurer as soon as it employs anyone, unless an exemption applies, and faces fines of £2,500 a day if uninsured and £1,000 for not making the certificate available. Germany does not use private employers' liability for this purpose: employees are insured by law under statutory accident insurance, and the employer pays the contributions.
Singapore requires work injury compensation insurance from a designated insurer for all manual workers and for non-manual workers earning S$2,600 a month or less, with fines of up to S$10,000 or imprisonment for failure. In Saudi Arabia, employers contribute to the Occupational Hazards branch of social insurance, at 2% for non-Saudi employees, and establishments outside that branch must pay injured workers' treatment costs directly.123456789
Health, motor and professional indemnity
Singapore employers must buy medical insurance of at least S$60,000 a year for each Work Permit holder and cannot pass the cost on. Saudi employers must provide preventive and curative healthcare in line with the Cooperative Health Insurance Law.
Motor liability insurance is compulsory for vehicles used on UK roads and for vehicles based in Germany. Professional indemnity is compulsory for regulated professions; German lawyers, for example, must carry at least EUR 250,000 per claim.1011121314
| Market | Employee injury | Other compulsory cover confirmed | Figure | Source |
|---|---|---|---|---|
| United Kingdom | Employers' liability insurance from an authorised insurer | Motor (Road Traffic Act s143) | £5 million minimum; £2,500 a day fine | GOV.UK; legislation.gov.uk |
| Germany | Statutory accident insurance, employer-funded | Motor (PflVG); lawyers' professional indemnity | PI minimum EUR 250,000 per loss | gesetze-im-internet.de |
| Singapore | Work injury compensation insurance (designated insurer) | Medical insurance for Work Permit holders | S$2,600 threshold; S$60,000 medical cover | Ministry of Manpower |
| Saudi Arabia | Social insurance occupational hazards branch | Employer healthcare under the Cooperative Health Insurance Law | 2% for non-Saudi employees (PwC) | HRSD Labor Law; PwC |
Decisions to make
- When will the subsidiary hire its first employee?2610UK employers' liability cover is needed from that day, and Singapore WICA and medical insurance must be in place for covered staff.
- Will staff include manual workers or Work Permit holders in Singapore?610These trigger WICA regardless of salary and the S$60,000 medical insurance requirement.
- Will the company own or keep vehicles?1213Motor liability cover is compulsory in the UK and Germany.
- Does the business carry on a regulated profession?14Professional bodies set compulsory indemnity minimums, such as EUR 250,000 for German lawyers.
Documents usually needed
- Employers' liability certificate (UK) available to employees
- Registration and contribution records with the German accident insurance institution
- WICA policy from a designated insurer and Work Permit medical insurance details submitted to MOM
- Social insurance registration and health insurance policy for Saudi staff
- Motor insurance certificates for company vehicles
- Professional indemnity policy meeting the regulator's minimum
Common mistakes
- Assuming a global liability policy satisfies UK employers' liability requirements
- Buying private employers' liability cover in Germany instead of registering with the statutory scheme
- Under-declaring headcount or occupations on a Singapore WICA policy
- Passing Singapore medical insurance costs to Work Permit holders
- Overlooking profession-specific indemnity minimums
Questions businesses ask
Does a UK subsidiary with one employee need employers' liability insurance?
Generally yes, from the day it becomes an employer, unless an exemption applies such as employing only certain family members or only staff based outside Great Britain.21
Who insures German employees against workplace accidents?
They are insured by law under statutory accident insurance, and the employer pays the contributions.45
Is work injury insurance needed for all Singapore staff?
It is compulsory for manual workers and for non-manual workers earning S$2,600 a month or less; others are optional, but the employer must still compensate valid claims.6
What this guide does not yet confirm
These points need checking with a qualified local professional before you rely on them.
- India (Employees' State Insurance, Employees' Compensation Act, motor third-party insurance), France, the UAE (federal and emirate health insurance mandates) and US state workers' compensation could not yet be confirmed from official sources.
- The German employer's deadline to notify the accident insurance institution (SGB VII section 192) could not yet be checked.
- Saudi Cooperative Health Insurance Law details, minimum benefits and the regulator responsible were not confirmed; the 2% occupational hazards rate is from PwC and relates to employees covered before the new Social Insurance Law.
- Minimum motor insurance sums in the UK and Germany were not reviewed.
- Northern Ireland employers' liability rules were not checked.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
Most employers must hold employers' liability insurance from an authorised insurer covering at least £5 million, and can be fined £2,500 for every day they are not properly insured. The GOV.UK page covers England, Scotland and Wales; some employers are exempt. Northern Ireland rules were not checked.
Reused from gb-risk-009.
A UK employer needs employers' liability insurance as soon as it becomes an employer, unless an exemption applies, such as employing only certain family members or only staff based outside England, Scotland and Wales. GOV.UK guidance for England, Scotland and Wales; Northern Ireland rules were not checked. The insurer must be authorised, which can be checked on the FCA register.
A UK employer must make its employers' liability insurance certificate available to employees and show it to inspectors on request, and can be fined £1,000 for failing to do so. England, Scotland and Wales.
In Germany, employees are insured by law under the statutory accident insurance scheme. Section 2(1) no. 1 SGB VII. Cover is provided by the statutory accident insurance institutions (Berufsgenossenschaften), not bought from private insurers.
Contributions to German statutory accident insurance are owed by the employer (Unternehmer) for whose business the insured persons work. Section 150(1) SGB VII; employees do not contribute.
Employers must buy work injury compensation insurance for all employees doing manual work, regardless of salary, and for employees doing non-manual work who earn S$2,600 or less a month. Monthly salary for the threshold excludes overtime, bonuses, annual wage supplement, productivity incentive payments and allowances. Since 1 January 2021 policies must be issued by a designated insurer.
Confirmed; the S$2,600 threshold is current on the MOM page. Reused from sg-risk-007.
Failure to provide adequate work injury compensation insurance is an offence punishable by a fine of up to S$10,000, imprisonment of up to 12 months, or both.
Reused from sg-risk-g03.
Social insurance contributions for Saudi employees total 21.5% of salary (9.75% employee, 11.75% employer), while for non-Saudi employees the employer pays 2% for occupational hazards only, on salary capped at SAR 45,000 a month. Contribution base is basic salary plus housing allowance; rates as reported for employees covered before the new Social Insurance Law.
Secondary source. The GOSI website did not render content when opened. The new Social Insurance Law (understood to apply to new Saudi entrants from 3 July 2024 with phased pension contribution increases) is not reflected on the PwC page and was not confirmed on an official page. Reused from sa-people-013.
The Saudi Labor Law's work-injury chapter does not apply to establishments covered by the Occupational Hazards branch of the Social Insurance Law; otherwise the employer must provide treatment and bear its costs. Saudi Labor Law, Articles 132 and 133; work injuries are defined by the Social Insurance Law (Article 134).
Singapore employers must buy and maintain medical insurance with annual coverage of at least S$60,000 for each Work Permit holder they employ, and cannot pass the cost to the worker. Ministry of Manpower rule effective from 1 July 2023 for the coverage amount; insurers pay 75% of claims above S$15,000. Details must be submitted before a Work Permit is issued or renewed. S Pass rules were not covered on this page.
Saudi employers must provide workers with preventive and curative healthcare in accordance with standards set by the Minister, taking into account the Cooperative Health Insurance Law. Saudi Labor Law, Article 144. The detailed health insurance obligations under the Cooperative Health Insurance Law were not reviewed.
A person must not use a motor vehicle on a road or other public place in Great Britain unless a policy of insurance or security meeting the Road Traffic Act requirements is in force. Road Traffic Act 1988 s143(1)(a), in the Part headed compulsory insurance or security against third-party risks; applies to company vehicles.
The keeper of a motor vehicle normally based in Germany must take out and maintain liability insurance covering the keeper, the owner and the driver. Section 1 Pflichtversicherungsgesetz (PflVG). Minimum sums insured were not reviewed.
A German lawyer must hold professional liability insurance with a minimum sum insured of EUR 250,000 per loss, and the insurer may limit total payments in an insurance year to four times that minimum. Section 51(1) and (4) BRAO; an example of profession-specific compulsory professional indemnity. Other professions have their own rules.
Questions on this topic
14 statements on compulsory business insurance
