Key points at a glance
- Whether a policy is mandatory depends mainly on whether you have employees - and whether you are an employee yourself: as the owner of a GmbH or corporation (AG), you are employed by your company; as the owner of a sole proprietorship (Einzelfirma), you are self-employed.
- Once you have staff, AHV/IV/EO/ALV (old-age and survivors', disability, loss-of-earnings and unemployment insurance), accident insurance (UVG), the occupational pension (BVG) from an annual salary of CHF 22'680 and family allowances are mandatory. Daily sickness allowance insurance is voluntary, but it covers the salary you must keep paying when an employee is ill.
- If you're self-employed, you're covered for accidents only through your health insurance - with no income replacement. Accident, daily allowance and pension fund cover are up to you.
- Business liability insurance isn't required, but practically every business needs it. For small office and service businesses, it often costs a few hundred francs a year.
- Get several quotes for each policy and compare the sum insured, deductible, waiting period and exclusions - not just the premium.
Mandatory or voluntary? An overview
The federal SME portal sums it up like this: in a sole proprietorship, general partnership or limited partnership, the owner counts as self-employed and is "largely responsible" for their own social security cover. In a GmbH or AG, the owners are entrepreneurs and at the same time their own employees - so most insurance is mandatory. Business insurance such as liability cover, on the other hand, is generally your own choice.
| Insurance | Sole proprietorship without staff | With staff, or GmbH/AG |
|---|---|---|
| AHV/IV/EO | mandatory | mandatory |
| Unemployment insurance (ALV) | not possible | mandatory for employees |
| Family allowances (FAK) | mandatory | mandatory |
| Accident insurance (UVG) | voluntary | mandatory for employees |
| Pension fund (BVG) | voluntary | mandatory from CHF 22'680 annual salary |
| Daily sickness allowance (KTG) | voluntary | voluntary (mandatory only if a collective labor agreement (GAV) requires it) |
| Motor vehicle liability | mandatory for every vehicle | |
| Building insurance | only if you own the property; mandatory in most cantons | |
| Business liability, property, legal expenses, cyber | voluntary | |
Accident insurance (UVG)
What it covers: UVG insurance pays medical costs and a daily allowance to replace lost income after occupational and non-occupational accidents and occupational diseases, and pensions in case of permanent impairment. Salaries are insured up to a maximum of CHF 148'200 a year (as of 2026).
Who must have it: Every employer must insure its employees - including the managing director of a GmbH who is employed by her own company. The company pays the premium for occupational accident insurance (BU). You may deduct the premium for non-occupational accident insurance (NBU) from the salary; employees are covered for non-occupational accidents if they work at least eight hours a week for you.
Who offers it: Industrial and construction businesses and the other business types listed in the Accident Insurance Act must be insured with Suva (Art. 66 UVG, in German). All other businesses - including most office and service firms - choose a private insurer, for example Allianz, AXA, Helvetia Baloise, Helsana, Mobiliar or Zurich. Suva can tell you whether your business falls under Suva.
What it costs: The premium is a per-mille rate of payroll and depends on the industry and claims history. For an office business, Moneyland gives an example of 0.92 ‰ for occupational accidents and 11.07 ‰ for non-occupational accidents. On an annual salary of CHF 80'000, that's about CHF 75 (paid by the company) and about CHF 890 (deducted from salary). Some insurers charge a minimum premium of CHF 100 per policy.
If you're self-employed: Without UVG cover, your health insurance covers accidents - it pays the medical costs, but not your lost income. Self-employed people can take out voluntary UVG insurance (Art. 4 UVG), with Suva or with their staff's insurer. If you take out voluntary UVG cover, you can have the accident cover in your health insurance suspended.
What to look for: Supplementary UVG insurance covers salaries above the maximum, benefits above 80% or a private hospital ward. It costs extra - check whether you really need it.
Pension fund (BVG)
What it covers: The occupational pension builds up savings for retirement and covers disability and death - on top of the AHV.
Who must have it: You must insure employees whose annual salary exceeds the entry threshold of CHF 22'680 (as of 2026) with a pension fund (Pensionskasse). At a minimum, the coordinated salary is insured: the annual salary minus the coordination deduction of CHF 26'460, up to a maximum of CHF 64'260. The company pays at least half of the contributions.
What it costs: Savings contributions rise with age - at the statutory minimum, 7% of the coordinated salary from age 25, then 10% and 15%, and 18% from age 55. Risk and administration costs come on top, depending on the pension fund and plan. A plan with higher benefits than the minimum costs correspondingly more.
Who offers it: Small businesses usually join a collective foundation (Sammelstiftung) - offered by life insurers (e.g. Swiss Life, Helvetia Baloise, PAX, Allianz) or by independent foundations. With full-insurance solutions, the insurer bears all the risks; with semi-autonomous solutions, the foundation bears the investment risk - with the chance of higher interest, but also the risk of restructuring contributions. If you can't find a pension fund, you can join the BVG Substitute Occupational Benefit Institution (Stiftung Auffangeinrichtung BVG).
If you're self-employed: The pension fund is voluntary. You can join your staff's pension fund, your professional association's fund or the Substitute Occupational Benefit Institution (Art. 44 BVG, in German). Without a pension fund, you can pay considerably more into pillar 3a - more on this in the article Retirement provision for the self-employed.
What to look for: the interest paid on retirement savings in recent years, the conversion rate on the extra-mandatory portion, the foundation's funding ratio, costs per insured person and the terms if the affiliation agreement is terminated.
Daily sickness allowance (KTG)
What it covers: If an employee falls ill, the Swiss Code of Obligations (CO) requires you to keep paying her salary for a limited time (Art. 324a CO) - three weeks in the first year of service (if the employment lasts more than three months), and longer after that, depending on the court scale (Bern, Basel or Zurich scale). A long illness can get expensive for a small business. Daily sickness allowance insurance takes over this risk.
Who must have it: Nobody - unless a collective labor agreement requires it. If the insurance replaces the statutory continued payment of salary, it must be at least equivalent. Under case law, cover is equivalent if it pays 80% of the salary for 720 days within 900 days and the company and the employee each pay half of the premium. Put the arrangement in writing in the employment contract.
What it costs: The premium is a percentage of payroll. It depends mainly on the waiting period (the longer, the cheaper), as well as on the industry, the age of the insured employees and the claims history. In practice, employees often pay up to half of the premium.
Who offers it: Health and private insurers, for example Allianz, AXA, Groupe Mutuel, Helsana, Sanitas, SWICA or Visana.
If you're self-employed: Without a daily allowance of your own, you have no income when you're ill. You can take out individual daily sickness allowance cover with a health or private insurer; choose a waiting period that matches your reserves.
What to look for: when the waiting period starts (some insurers count only from the date you report the illness), exclusions for pre-existing conditions, the benefit period, the right to transfer to individual cover when an employee leaves, and whether the contract is governed by the Insurance Contract Act (VVG) or the Health Insurance Act (KVG).
Family allowances (FAK)
Employers and the self-employed must be affiliated with a family compensation fund, usually through their AHV compensation office (Ausgleichskasse). The contribution is a percentage of the payroll or income subject to AHV and varies by canton and fund. You pay out the allowances with the salary and settle them with the fund. More on this in the article Payroll in a small business.
Business liability insurance
What it covers: Bodily injury and property damage your business causes to third parties - and it defends you against unjustified claims. The SME portal distinguishes three risks: the premises risk (a roof tile falls from your business premises onto a car), the operational risk (an installer damages a kitchen while replacing a washing machine) and the product risk (a coffee machine overheats and starts a fire). Damage to yourself or your family is not covered.
Who must have it: As a rule, nobody. There are exceptions for certain industries and professions - garages, for example, need motor vehicle liability insurance for customers' vehicles (Art. 71 SVG). Even so, the SME portal counts business liability insurance among the "basic needs" of practically every business - a single claim can cost tens of thousands or even millions of francs.
What it costs: Insurers don't disclose how they calculate premiums. Comparison sites usually quote a few hundred francs a year for small office, IT and consulting businesses, and several times that for trades and construction. What counts is the industry, revenue or payroll, sum insured and deductible.
Who offers it: Allianz, AXA, Generali, Helvetia Baloise, Mobiliar, Vaudoise and Zurich, among others - often as part of an SME package.
What to look for: the sum insured per claim (at least CHF 5 million is often recommended) and per year; the deductible; exclusions (typically claims from the USA and Canada, wear and tear on rented premises, certain health impairments); and whether damage to rented premises and damage to customers' property you're working on (property in your care, custody and control) is included.
Professional liability insurance
It covers pure financial losses caused by mistakes in your advice or planning - for example, when a client loses money because of incorrect information, without anyone being hurt or anything damaged. Standard business liability insurance usually doesn't cover such pure financial losses. Professional liability matters for consulting, accounting, IT, planning and architecture. For some professions it's required by law, for example for lawyers (Art. 12 let. f BGFA) and for physicians in private practice (Art. 40 let. h MedBG).
Property and building insurance
Contents: You insure goods, furniture and fittings, machinery, tools and computers against fire, natural hazards, water damage, burglary and, if needed, glass breakage. Make sure the sum insured reflects the replacement value: if it's too low, the insurer reduces its payout in a claim (underinsurance). Adjust the sum when you buy more equipment.
Building: This only concerns you if you own the business premises. In 19 cantons, building insurance against fire and natural hazards is mandatory with the cantonal building insurer; in Uri, Schwyz and Obwalden it's mandatory with a private insurer; in Geneva, Ticino, Valais and Appenzell Innerrhoden it's voluntary.
Business interruption: Covers ongoing costs and lost profit if your business has to stop after a loss. It's worth it mainly if you can't move elsewhere - for example, with a workshop or a shop.
Electronics and machinery: Electronic equipment or machinery insurance also pays for operating errors, short circuits or drops - cases standard property insurance often doesn't cover.
Cyber insurance
It pays the costs after a hacker attack or data loss: specialists for recovery, business interruption, notifying the people affected and third-party claims. According to the Swiss Insurance Association, only five to ten percent of SMEs have cyber insurance; around twenty insurers offer it, and there is no standard policy. Ransom payments are usually excluded. Before you sign, insurers usually ask about your basic security, such as up-to-date software, data backups and two-factor login. Check which of these details are conditions for a payout. How to protect yourself even without insurance is covered in the article Data backup for small businesses.
Legal expenses insurance
Business legal expenses insurance covers lawyers' and court fees in disputes with customers, suppliers, your landlord or employees. Check which areas of law are covered (contract, employment and tenancy law, debt collection), the sum insured, any waiting period and a minimum amount in dispute. Cheap plans often offer only legal advice and don't cover litigation costs.
How to compare policies
- Assess your risks: What can go wrong in your business, and what would it cost? Only then decide on the scope of cover.
- Get several quotes based on the same details (industry, revenue, payroll, sum insured, deductible).
- Compare benefits, not just premiums: sum insured, deductible, waiting period, exclusions, benefit period.
- Check the term and cancellation terms: Since 2022, you can cancel any insurance contract with three months' notice at the end of the third year or any following year (Art. 35a VVG, in German), even if it has a longer term - except life insurance.
- Take a critical look at packages: SME packages are convenient, but sometimes include components you don't need. An independent broker can help; brokers are usually paid by the insurer.
- Review every year: New employees, higher revenue, new equipment or a new service change your risks - report changes, or you risk being underinsured.
Example: a graphic design studio run as a GmbH with two employees
Nadia runs a graphic design studio as a GmbH and is employed by it herself, along with two staff members. Mandatory for all three: AHV/IV/EO/ALV, UVG, BVG and family allowances. To cover continued salary payments, she takes out daily sickness allowance insurance with a 30-day waiting period and sets it out in the employment contracts. On a voluntary basis, she chooses business liability insurance with a CHF 5 million sum insured, professional liability insurance for errors in print files, property insurance for computers and furniture at replacement value, and cyber insurance. She does without business interruption cover: if something happens, her team can keep working from home.
How it works in Easly
- Store your policies: Under "Staff > Contracts", you store the policies for UVG, BVG, daily sickness allowance and family allowances, plus any other contracts such as liability or legal expenses insurance.
- AI Values for payroll: With AI access, Easly reads the insurer, policy number, term, notice period and contribution rates from the policy and suggests the NBU rate and the BVG and KTG deductions for payroll.
- Reminder before expiry: If a contract expires in less than 30 days, the dashboard shows it - in time to compare quotes or cancel.
- Onboarding checklist: When you hire your first employee, Easly guides you through registering with the compensation office, accident insurer, pension fund and family compensation fund.
- Record premiums: You record premium invoices as a receipt in the category "Insurance & fees". With double-entry bookkeeping, you assign payments to the compensation office, accident insurer or pension fund to the social insurance account in the bank import.
Frequently asked questions
Do I need accident insurance for a sole proprietorship without employees?
It isn't required. Your health insurance covers medical costs after an accident, but not your lost income. If you live on your business income, consider voluntary UVG insurance or a daily allowance that also pays after accidents.
Is business liability insurance mandatory?
In most industries, no. But it's considered a basic need for practically every business, because a single claim can cost more than everything the business owns. For certain professions and industries, the federal government or the cantons require liability or professional liability insurance.
Who pays the premiums for accident insurance, the pension fund and daily sickness allowance?
The company pays the occupational accident premium and may deduct the non-occupational accident premium from the salary. For the pension fund, the company pays at least half of the contributions. For daily sickness allowance, the split is up to you; usually employees pay no more than half. Set out the split in the employment contract.
Can I cancel an insurance contract early?
Since 2022, you can cancel any contract - except life insurance - with three months' notice at the end of the third or any following insurance year, even if a longer term was agreed. This also applies to older contracts. You can also cancel after a claim. For the pension fund, the terms of the affiliation agreement apply.
Are the premiums tax-deductible?
Premiums for the business's insurance - liability, property, legal expenses, cyber and the employer's social insurance contributions - are business expenses. Your own health insurance and private insurance belong in your personal tax return, with the deductions that apply there.
Information as of: see above. Sources: federal SME portal: Insurance - what is mandatory, what makes sense?, Accident Insurance Act (Art. 4 and 66 UVG, in German), Occupational Pensions Act (Art. 4, 8, 44 and 66 BVG, in German) with the 2026 limits, Swiss Code of Obligations (Art. 324a CO) and Federal Supreme Court judgment 4A_514/2018, consid. 3.1, Insurance Contract Act (Art. 35a VVG, in German), UVG premium example: moneyland.ch, building insurance: moneyland.ch, cyber: Swiss Insurance Association (SVV). Premiums are guide values and depend heavily on industry, size and claims history. Mentioning providers is not a recommendation. This article is not a substitute for insurance advice.