Business insurance in Switzerland: mandatory cover and options for founders

Which insurance is mandatory for your business?

A recognised self-employed person is not compulsorily insured under the occupational pension or unemployment schemes for that activity. Accident cover and retirement provision need separate planning. A founder working as an employee of their own company falls under the employee rules for that remuneration.

Professional liability insurance is not compulsory for every business in the same way. It may be required by sector regulation, a lease or a customer contract. Identify the applicable rule rather than assuming everything is optional or everything mandatory.

Accident insurance and pensions for employees

Employees must be insured against occupational accidents and diseases. Those working at least eight hours a week for the same employer also need non-occupational accident cover. The Swiss Accident Insurance Act is usually called LAA in French and UVG in German.

The competent insurer depends partly on whether the activity falls within Suva’s statutory remit. Not every business can freely choose a private insurer; clarify this when starting.

For compulsory occupational pensions, the annual salary threshold is CHF 22,680 in 2026 with one employer. Age, employment duration and other conditions or exceptions also matter. Pension plan rules can provide benefits above the statutory minimum.

Compare insured salary, death and disability benefits, retirement savings and contribution sharing, not just premiums. Arrange affiliations and payroll settings before the first employee starts. Our first employee checklist covers the wider process.

Business liability versus professional indemnity

Business liability typically addresses damage associated with operations, premises or products. Professional indemnity may cover errors in specialised services. The precise scope depends on the contract.

Example: an installer damages a customer’s property during a visit; a consultant makes an error causing purely financial loss. These do not necessarily fall under the same insurance cover.

• Are all current and planned services declared?
• Which staff and other people are covered?
• Are bodily injury, property damage and pure financial loss included where needed?
• Which countries and jurisdictions are covered?
• What happens to defence costs and claims received after an engagement ends?

Limited liability does not eliminate the need for insurance. The company’s assets remain exposed, and individuals can still incur personal liability in certain circumstances.

Protecting income during sickness

Compulsory health insurance pays medical costs under its rules. It does not automatically replace an entrepreneur’s income. Daily sickness benefits insurance, often called IJM or perte de gain maladie in French, addresses a different risk.

Employers have salary-continuation obligations when the conditions of employment law are met. Insurance may finance an equivalent arrangement, subject to the applicable requirements. A collective employment agreement or employment contract may require particular cover.

Daily-benefit policies may fall under different Swiss insurance laws. Do not assume every policy pays 80% of income for 720 days. Check benefit duration, waiting period, exclusions, medical reservations, declared income and rights to move to individual cover.

For a self-employed person, also calculate costs continuing during absence: rent, subscriptions, leasing or staff. A benefit replacing household income may not pay those business overheads.

Equipment, stock and business interruption

Inventory furniture, IT equipment, machinery, stock and assets entrusted to you. Record values, locations and requirements under leases or financing contracts.

Property insurance and business interruption cover are distinct. Compensation for damaged equipment does not automatically cover lost income or temporary operating costs. The interruption must arise from an insured event within the policy terms.

Consider closure of premises, lost stock, an unavailable machine, temporary relocation and urgent replacement. Ask how long losses would be covered and what deductible applies.

Planning example: a business estimates that losing its main machine would stop production for six weeks. It must budget for replacement, fixed costs and a temporary alternative. This identifies the cover to discuss; it does not establish that a mechanical breakdown is insured.

Cyber and legal expenses insurance: check the limits

Legal expenses insurance can pay specified defence, legal or court costs. Covered areas, qualifying periods, financial limits and claims procedures vary. Do not assume a dispute already known before purchase is covered.

For cyber insurance, ask separately about restoring systems, a data breach, business interruption and payment fraud. They may fall under different sections or exclusions. Insurance does not remove the need for updates, controlled access and usable backups.

Keep emergency contacts and claims instructions accessible. Staff should know whom to notify and which actions require coordination after an incident. Test the process rather than filing the policy away unread.

How to compare policies without duplicating cover

Give each insurer the same activity description, expected turnover, headcount, payroll, locations and assets. A low premium based on an inaccurate description is not a reliable comparison.

For every proposal, record the insured amount, deductible, exclusions, waiting period, benefit duration and prevention obligations. Compare these with cover already held privately or through another job.

1. Identify obligations you must meet.
2. Prioritise events that could threaten the business.
3. Identify smaller losses you could finance from cash reserves.

Review policies when hiring, moving, investing or adding services. Insurance should follow the actual business, just as your accounting and budgets do. For sole proprietors, distinguish policy costs from mandatory AVS contributions.

Frequently asked questions