General Business Liability Insurance

Benefits of commercial liability insurance

There are so many causes of property damage and accidents to third parties: e.g. defective products, insufficiently maintained equipment or improper machine handling. 

  • Commercial liability insurance protects you from the financial consequences of justified claims.
  • Where claims are not justified, the benefits provide for defense as well as legal protection in criminal or administrative procedures.
  • Zurich Commercial Liability Insurance makes the insured risks calculable for you.

Benefits for Zurich customers

  • With the extensive basic insurance, your company gets comprehensive basic protection for the activities insured.
  • The selection of industry-specific supplementary insurance options enables us to put together a solution specific to your activity.
  • If the sum insured has been exhausted, you benefit from the full sum insured in case of another loss within the same year.
  • Companies operating in various sectors are insurable with straightforward cover via a single policy.
  • Start-ups get a 10% discount for the first three years of the insurance.

Scope of coverage

Scope of coverage of the basic insurance

Business premises risk: Risks relating to buildings, premises, plants or properties.
Example: Part of the ceiling comes loose at your store and injures customers.

Operational risk: Risks brought about by day-to-day operations.
Example: While building work is underway, a wall collapses and injures someone.

Product risk: Risks arising from manufactured, processed or sold products.
Example: A machine you manufactured explodes and destroys parts of a building.

Environmental risk: Risks to which the company is exposed as a result of an unexpected environmental incident.
Example: A neighboring plot of land is contaminated by leaking liquid.

Additional benefits of the basic insurance include the following:

  • Insurance coverage is also provided for cross liability claims between insured companies under the same third-party liability policy.
  • If a claim is at least CHF 1,000, Zurich will provide claims handling for insured events for you even within your deductible. This includes legal examination of claims for their accuracy and appropriateness.
  • The insurance coverage is valid worldwide with the exception of the USA and Canada.

Examples of the supplementary insurance options we offer

Dismantling and assembly expenses: A drive motor you have manufactured for a machine does not produce the required power and has to be removed from the machine to rectify the fault and then reinstalled. The costs for dismantling and assembly are insured.

Determination and remedy costs: As a water pipe you supplied is leaking in a building, the defective section has to be found using a pipe camera. The costs for the search with the camera are insured.

Loss of use: The driving roller you manufactured for a conveyor belt breaks, causing the conveyor belt at your customer’s premises to stop. The loss of earnings for your customer due to the downtime is insured.

Recall costs: The coffee machines you manufactured have safety defects that could lead to bodily injury and must therefore be recalled. The costs for the recall, such as transportation and return costs or travel costs for employees, are insured.

Losses incurred in combining, mixing and further processing: A substance you supplied is used to produce a drink. As the substance does not have the right consistency, the drink is unpalatable. The manufacturing costs of the drink incurred by the producer are insured with the exception of the substance delivered by you.

Extended loss to property in the custody of/worked upon by the insured: While a customer’s TV set is being repaired, it falls to the ground and is destroyed. The destroyed TV set is insured.

Extension of the territorial area of applicability to the USA and Canada: A cheese you supplied to the USA leads to food poisoning. The bodily injuries in the USA are insured.

Frequently asked questions regarding liability insurance

Is commercial liability insurance mandatory?

In principle, no.
One exception is car dealers, who have to have coverage pursuant to article 71 of the Swiss Road Traffic Act. Furthermore, there may be cantonal regulations for certain activities that provide for mandatory commercial liability insurance.

Our advisory services

Protect yourself - we will be happy to advise you.