Which cover is compulsory?

The following insurance policies may be important for the foundation of an AG (joint-stock company) or GmbH (limited liability company):

For the company: 

• Professional indemnity insurance: This protects freelance professionals, such as doctors, lawyers and engineers, against financial claims from clients or third parties that may arise due to errors, omissions or negligence in their professional activities.
• Commercial liability insurance: Protects the company against financial losses that may be caused by personal injury or property damage. Read more about the differences between commercial liability insurance and professional indemnity insurance.
• Property insurance: Unforeseeable events, such as fires, can damage goods and lead to the suspension of operations. Protect your inventory, buildings and earnings in the event of damage. With Zurich, you can insure yourself against individual risks or obtain comprehensive protection with All Risk cover.
• Cyber insurance: This is becoming increasingly important in today's digitalized world. It protects the company against the financial consequences of cyberattacks, such as data loss, business interruption or third-party claims. It also provides support with preventive measures and a 24/7 hotline to help with security incidents.
• Commercial legal protection insurance: Protects your company against unauthorized third-party claims  . Our partner Orion advises and represents you professionally in legal disputes and bears the financial risk in connection with such disputes.
• Directors' & Officers' Liability Insurance (D&O): Under certain circumstances, members of the Board of Directors and senior executives are personally liable (meaning their personal assets are at risk) if damage is caused by their actions in breach of duty. Directors' & Officers' Liability Insurance protects the assets of directors and officers and covers defense costs.

Insurance for employees:

• Insurance for daily sickness benefits: If employees fall ill, you are obligated to continue paying their wages for a certain period of time. Certain collective labor agreements obligate all companies in this sector to take out collective insurance for daily sickness benefits. Otherwise, this insurance is not obligatory for financial protection, but is strongly recommended.
• Accident insurance: Mandatory LAI accident insurance and complementary LAI insurance offer your employees optimum cover for occupational and non-occupational accidents and occupational illnesses. As the managing director of a GmbH or AG, you are also an employee and therefore also insured.
• Occupational retirement provision (BVG): This is governed by the Swiss Federal Law on Occupational Retirement, Survivors‘ and Disability Pension Plans (BVG). Employers are obligated to insure all employees who earn at least CHF 22,050 (as at 2024) within a pension fund. From the age of 18, employees must be insured against the risks of disability and death, and from the age of 25 it is also mandatory to save for old age. The amount of the contributions depends on the employee's age and salary, and at least half of the contributions are paid by the employer.

There are various ways of offering employees benefits that go beyond the statutory minimum stipulated by the BVG. This enables companies to position themselves as attractive employers. Let us advise you on this.

In Switzerland, occupational retirement provision, also known as the 2nd pillar of retirement provision, is mandatory for employees.

Occupational retirement provision (BVG) is governed by the Swiss Federal Law on Occupational Retirement, Survivors‘ and Disability Pension Plans (BVG). Employers are obligated to insure all employees who earn at least CHF 22,050 (as at 2024) within a pension fund. From the age of 18, employees must be insured against the risks of disability and death, and from the age of 25 it is also mandatory to save for old age.

There are various ways of offering employees benefits that go beyond the statutory minimum stipulated by the BVG. This enables companies to position themselves as attractive employers. Let us advise you on this.

Certain collective labor agreements obligate all companies in this sector to take out collective insurance for daily sickness benefits.

Otherwise, this insurance is not obligatory for financial protection, but is strongly recommended. This is because your company is legally obligated to continue paying employees' wages for a certain period of time if they are ill. How long the salary must be paid for the first year is regulated in the Swiss Code of Obligations (OR 324a) and depends in particular on the length of employment from the second year of service onwards.

As part of the obligation to continue to pay wages, collective insurance for daily sickness benefits offers the security of knowing that the financial burden will remain calculable even if an employee is absent for a longer period of time. It also offers the opportunity to make a name for yourself as a generous employer.

Daily benefit in case of hospitalization: Continued payment of salary during illness | Zurich Switzerland

The cost of commercial liability insurance depends on various factors, such as the size of the company, the industry, the sum insured and the individual risk assessment. It is therefore difficult to make a general statement about the costs.

Calculate your premium online in just a few steps or get advice.

Yes, by law, managers and board members are personally liable for their actions and omissions relating to the company in the event of a claim for damages. This means their personal assets are at risk. In order to minimize personal financial risks, managers can take out Directors' & Officers' Liability Insurance.

This depends on various factors, such as the company’s operational activity, the canton, turnover and inventory. Using the SME check, you can find out which insurance policies are mandatory for your company with just a few details – and which are recommended. The SME check is anonymous.

For start-ups/self-employed people

Retirement provision: As a self-employed person, you are insured under the OASI (1st pillar), but occupational retirement provision (2nd pillar) is voluntary and only possible under certain circumstances. An alternative is to take out private insurance via the 3rd pillar – against life risks such as disability and death, but also for retirement provision. Self-employed people can invest up to 20% of their net annual income in pillar 3a on a tax-privileged basis, up to a maximum of CHF 35,280 (as at 2024). It is also possible to protect yourself against risks or save money for the time after retirement with a pillar 3b unrestricted pension plan. 

For the company 

• Professional indemnity insurance: This protects freelance professionals, such as doctors, lawyers and engineers, against financial claims from clients or third parties that may arise due to errors, omissions or negligence in their professional activities.
• Commercial liability insurance: Protects the company against financial losses that may be caused by personal injury or property damage. Read more about the differences between commercial liability insurance and professional indemnity insurance. 
• Property insurance: Unforeseeable events, such as fires, can damage goods and lead to the suspension of operations. Protect your inventory, buildings and earnings in the event of damage. With Zurich, you can insure yourself against individual risks or obtain comprehensive protection with All Risk cover.
• Cyber insurance: This is becoming increasingly important in today's digitalized world. It protects the company from the financial consequences of cyberattacks, such as data loss, business interruption or claims by third parties. It also provides support with preventive measures and a 24/7 hotline to help with security incidents.

For the employees

• Insurance for daily sickness benefits: If employees fall ill, you are obligated to continue paying their wages for a certain period of time. Certain collective labor agreements obligate all companies in this sector to take out collective insurance for daily sickness benefits. Otherwise, this insurance is strongly recommended for financial protection, but is not mandatory. 
• Accident insurance: Mandatory LAI accident insurance and complementary LAI insurance offer your employees optimum cover for occupational and non-occupational accidents and occupational illnesses. 
• Occupational retirement provision (BVG): is governed by the Swiss Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans (BVG). Employers are obligated to insure all employees who earn at least CHF 22,050 (as at 2024) within a pension fund. From the age of 18, employees must be insured against the risks of disability and death, and from the age of 25 it is also mandatory to save for old age. The amount of the contributions depends on the employee's age and salary, and at least half of the contributions are paid by the employer.

There are various ways of offering employees benefits that go beyond the statutory minimum stipulated by the BVG. This enables companies to position themselves as attractive employers. Let us advise you on this.

This depends above all on the extent to which you work part time. You can find detailed information here.

As a self-employed person in Switzerland, you must pay various social security contributions. Here are the most important ones:

OASI/DI/EO (old-age and survivors' insurance/disability insurance/loss of earnings compensation scheme): The contribution rate is currently 10.6%  of income for self-employed people and 10% for employees. Half of this is borne by employees and half by employers. As a self-employed person, you must pay the full contribution rate.

UI (unemployment insurance): The contribution rate is 2.2% of income up to a maximum annual salary (2024: CHF 148,200 per year). Again, half of this is borne by employees and half by employers. Self-employed people cannot join the unemployment insurance scheme.

Occupational retirement provision (BVG): Contributions for occupational retirement provision depend on the chosen solution; the law stipulates minimum benefits. As a rule, self-employed people are not obligated to make contributions for occupational retirement provision. However, it is recommended that you set up voluntary retirement provision to protect yourself against life risks such as disability and death and to provide for your old age. Be sure to seek advice, otherwise there is a risk of pension gaps.

The exact contribution rates and contribution assessment limits can be adjusted and depend on your income.

As a self-employed person in Switzerland, you must take care of your own social security provision. Here are the most important insurance policies you should take out as a self-employed person:

Insurance for daily sickness benefits: In Switzerland, insurance for daily sickness benefits is voluntary but recommended. It covers your loss of earnings if you are unable to work due to illness. The amount and duration of the benefits as well as the waiting period until the start of payment are contractually agreed. Self-employed people can take out collective insurance for daily sickness benefits.

Accident insurance for the self-employed: As a self-employed person, you are not automatically covered by statutory accident insurance (LAI), but you can take out voluntary insurance. The insurance offers you cover for occupational accidents, occupational illnesses and non-occupational accidents. The insurance covers, among other things, medical expenses, daily allowances, disability pensions and, in the event of death, benefits to surviving dependents. In addition to voluntary LAI insurance, you can also take out complementary LAI accident insurance. This supplements the accident insurance benefits in accordance with the LAI. Alternatively, an individual, tailor-made accident insurance policy can be taken out in accordance with the ICA.

Occupational retirement provision (BVG): In Switzerland, self-employed people are generally not subject to mandatory insurance under the occupational retirement provision scheme (BVG). Occupational retirement provision is part of the Swiss three-pillar principle, which aims to ensure the person can maintain their habitual standard of living in old age or in the event of disability or death. Under certain circumstances, self-employed people have the option of taking out voluntary insurance to protect themselves against the financial consequences of old age, death and disability. An alternative is protection via the 3rd pillar. Let us advise you.

Disability income insurance: As a rule, self-employed people or business owners do not belong to a pension fund. That means that you don't get any pension from the 2nd pillar in the event of a disability. With disability income insurance in the 3rd pillar, you can still protect yourself and receive a pension after a set waiting period.

Retirement provision: If you do not have a 2nd pillar (pension fund), you should definitely make provision for old age via the 3rd pillar. Pillar 3a allows you to save taxes at the same time. As a self-employed person, you can pay up to 20% of your annual net income into pillar 3a, currently a maximum of CHF 35,280 (as at 2024).

In Switzerland, self-employed people are generally not subject to mandatory insurance under the occupational retirement provision scheme (BVG). Occupational retirement provision is part of the Swiss three-pillar principle. This aims to secure a person’s habitual standard of living in old age or in the event of disability or death. 

Under certain circumstances, self-employed people have the option of taking out voluntary insurance:

• If you have employees, you can voluntarily insure yourself in your employees' pension fund.
• Certain professions, such as doctors or lawyers, can join an association solution for occupational retirement provision.
• A third option is the Substitute Occupational Benefit Institution, although this will only offer basic benefits.

Which solution is best for you depends on your personal preferences and your financial situation. The important thing is that you take the initiative, otherwise there is a risk of painful pension gaps – you will not be able to maintain your standard of living in old age with OASI alone. Seek advice from a financial or pension specialist.