Corporate Insurance
Which Insurance for which Company?
The type of insurance you need depends first and foremost on the legal form of your company. In fact, if you own a sole proprietorship (whether general or limited), you will be considered to be self-employed by insurance providers.
This means that you will be largely responsible for your own pension provision. If you have a sole proprietorship, you are obliged to take out social insurance such as AVS and AC.
If, on the other hand, you have a limited liability company or a public limited company, you will be considered a salaried worker and most insurance policies will be compulsory. You have dual status, as you are seen as both your own employer and an entrepreneur.
Compulsory Insurance
There are a number of mandatory insurances you should consider taking out when embarking on any business venture.
Accident insurance (LAA and LAANP)
When one of your employees is involved in an accident, this insurance covers various expenses such as hospitalization costs, daily allowances and pensions, such as disability insurance (AI), for example.
In Switzerland, this insurance covers :
- Occupational Accident Insurance (OAI)
- Non-Occupational Accident Insurance (NOAI)
It protects your employee in the event of accidents, both work-related and non-work-related, as well as work-related illnesses. On the other hand, if your employee works less than eight hours in your company, NOAI is not your responsibility.
Occupational Benefits (BV)
In Switzerland, the BV (Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans) corresponds to the 2nd pillar, which is intended to supplement the 1st pillar (AVS/AI) to maintain a worker's usual standard of living when he or she reaches retirement age.
The BV is compulsory for all employees with a salary of at least CHF 22,050. Contributions are shared between employer and employee.
As the owner of a company, you can join a collective foundation.A foundation is a group of several companies that work together to meet the pension needs of their employees.
Supplementary Benefits (EL)
These benefits go beyond the minimum set by the BV and are generally offered by companies wishing to provide additional benefits for their employees. Unlike BV, these benefits depend on your goodwill as a company director; they are not required by law.
Offering higher benefits can make your company more attractive to current and future employees. However, you'll need to carefully analyze your staff's needs in terms of age and income, among other factors.
Optional Insurance
In Switzerland, other types of insurance are recommended depending on the type of business you own, but are not compulsory.
Daily Allowance Insurance
This coverage provides financial compensation to your employees who are unable to work due to an illness or accident. You will then have to continue paying your employee even if he or she is not working. The purpose of this protection is to reduce the costs associated with this obligation, which, although it has a time limit, can still be very costly.
This insurance is optional. However, some Collective labor agreements (CTT) can make it compulsory.
Professional Liability Insurance
As a company, you have the obligation to protect your customers and your employees by ensuring their safety. Imagine you're in charge of an entertainment company that organizes outdoor events.
If, during the event, a structure collapses (a light tower, the stage, etc.), injuring spectators and damaging your equipment, this insurance should cover the costs associated with this accident (medical expenses, repairs, compensation, etc.).
Before concluding any contract, it is important to carefully analyze the risks present in your specific activity. If you run a cleaning company, for example, the risks will be quite different from those associated with running a construction business.
Corporate Legal Protection
As extra-mandatory benefits supplement the LPP, legal protection can be added to third-party liability to provide even greater protection. It can help you in a number of situations, such as :
- A customer who refuses to pay for a service you have rendered
- A former employee suing you for wrongful dismissal
- A supplier who refuses to deliver merchandise
- A company that encroaches on intellectual property, thus harming your brand
Cyber Risk Insurance
Cyber insurance is increasingly recommended these days, given the rise in cybercrime. This protection allows you to defend yourself against, for example:
- Data theft
- Online payment fraud
- Cyber extortion
Transport Insurance
This protection allows you to insure your merchandise throughout its transport and protect it from the risks of travel. SERV for example, protects your merchandise during export activities.
Conclusion
With so many different types of insurance available to businesses and individuals alike, it can be hard to find your way around it all. We hope this guide has helped you make sense of all the possibilities for your business.
Frequently Asked Questions
What insurance coverage is mandatory?
The insurance policies you must take out are accident insurance (OAI), occupational benefits (BV) as well as daily allowance insurance.
What optional insurances are available?
You are not obliged to take out certain types of insurance, such as professional liability insurance, corporate legal protection, professional, cyber and transport insurance.
Does my company's legal status affect insurance coverage?
Yes, the insurance you need to take out depends first and foremost on the legal form of your company as well as your employment status (self-employed or not).
What is the difference between a SA and a Sàrl in Switzerland?
The SA and the Sàrl are both corporations. However, theminimum contribution for a corporation is CHF 100,000 (to be paid up at least at 50%), while the minimum contribution for a limited liability company is CHF 20,000.
Both have shares, but the shareholders of a public limited company are anonymous. This makes the SA particularly suitable for larger companies, but also for start-ups needing to raise capital.
