Swiss Corporate Liability Insurance

Corporate Liability Insurance (RC) in Switzerland covers bodily, material, and financial damages caused to third parties in the course of business activities. It protects the company against justified claims and defends it against unjustified ones. Although not mandatory, it is highly recommended for most sectors.

Corporate Liability Insurance in Switzerland is essential coverage to protect companies from financial claims resulting from material or bodily harm caused to third parties, as well as from unjustified claims. While generally not mandatory, it is strongly recommended for most Swiss businesses, especially in high-risk sectors or when they need to respond to specific tenders.

The main coverage includes:

– Bodily harm (injury or death) caused to third parties.

– Material damage caused to others’ property.

– Product liability, which protects against defective products.

– Environmental liability, covering ecological damage caused by the company’s activities.

– Legal defense costs to dismiss unjustified claims.

The cost of corporate liability insurance varies significantly depending on several key factors that influence annual premium amounts.

Company Size: Small enterprises (1 to 10 employees) usually have lower premiums, around CHF 800 per year, as they represent relatively low risk for insurers. In contrast, large companies with hundreds of employees or international operations may see their premiums reach several thousand or even tens of thousands of francs, depending on their size and risk exposure.

Industry: The industry in which a company operates plays a crucial role in determining the cost of liability insurance. Companies in high-risk industries, such as construction, chemical industries, or financial services, will pay higher premiums due to the increased likelihood of claims for material damage, injury, or product defects. For example, a Swiss construction company may be charged higher premiums due to the increased risk of material damage or injury.

Risk Level Associated with Activities: The level of risk also depends on the specific operations of the company. For instance, a manufacturing company producing potentially dangerous goods (machinery, chemicals) or a company that frequently hosts clients at its premises (hotels, restaurants) will see its premiums increase. On the other hand, a consulting company or a micro-enterprise in the service sector with little direct interaction with third parties will have lower costs.

Chosen Coverage: Companies can adjust their premiums based on the coverage they select. Basic coverage, covering only bodily and material damages, is generally less expensive than plans with specific extensions, such as environmental liability, cyber-risk protection, or business interruption guarantees.

Corporate liability insurance premiums in Switzerland are highly flexible depending on the specific characteristics of the company. To obtain suitable coverage while controlling costs, it is advisable to compare offers from leading insurers and tailor the coverage to the risks specific to each sector.

Specific Coverage Options

Companies in Switzerland can customize their corporate liability insurance (RC) based on the risks specific to their industry. There are specific coverage options tailored to the particular needs of certain sectors, including construction, industry, and liberal professions such as lawyers, architects, trustees, and accountants.

Liberal Professions (Lawyers, Notaries, Architects, Trustees, Accountants & Tax advisors)

Liberal professions such as lawyers, notaries, architects, trustees, accountants and tax advisors face different types of risks, primarily related to professional errors that can lead to financial losses for their clients. Liability insurance for these professions often includes:

– Professional liability: Covers errors or omissions that may lead to financial claims against the company.

– Crisis management and communication costs: Especially for reputation management in the event of public disputes.

– Design errors: For architects and engineers, this covers mistakes that could affect the construction or structure of a building.

These specific coverages allow companies to obtain protection tailored to their activities, considering the unique risks they face. Companies can also subscribe to additional guarantees beyond the basic coverage to better protect their activities and employees.

Construction Sector Liability

In the Swiss construction sector, the project owner, i.e., the person or entity commissioning the work (owner, developer, etc.), can also be held responsible for damages caused to third parties during construction. To protect against these risks, there are specific insurance policies known as Owner’s Liability Insurance.

What is Owner’s Liability Insurance?

Owner’s Liability Insurance covers liability claims against the project owner for damages occurring during construction. These damages can be caused by planning, design, or execution errors, involving both bodily injuries or material damage, not only to the construction workers but also to third parties.

Covered Risks

The main coverages offered by owner’s liability insurance include:

Bodily injury: Injuries inflicted on people on or around the construction site, such as a passerby being injured by unsecured scaffolding.

Material damage: Destruction or deterioration of property belonging to third parties, such as damage caused to neighboring properties by vibrations or collapses.

Environmental liability: Some contracts include extensions to cover environmental damage caused by the works (pollution, soil contamination, etc.).

Construction Insurance

In the construction sector, several specific coverages are also available, including:

– Decennial liability insurance: In Switzerland, decennial liability is not mandatory as it is in France, but it is often subscribed by project owners to cover hidden defects affecting the solidity of the building after its delivery.

– All-risk construction insurance : This insurance is often complementary to the owner’s liability and covers damage to the construction site itself, whether caused by human error, natural disasters, or unforeseen accidents.

For a project owner, whether it is the construction of a single-family home or a more complex building, subscribing to owner’s liability insurance is essential to protect against unforeseen events during the works. This insurance allows for the transfer of financial risks related to damages or accidents occurring on the site and avoids significant liabilities in the event of third-party claims.

My Swiss Company SA is a Swiss Corporate Services Provider firm specializing in the creation, administration of Swiss companies, and insurance advisory for businesses wishing to establish themselves in Switzerland. We help cross-border companies understand and navigate the various obligations and protections required within the Swiss legal framework. This includes mandatory insurances like LAA/SUVA (accident insurance) as well as advice on optional insurances, such as professional liability, business interruption insurance, or legal protection.

Our expertise enables businesses to better understand the risks specific to their industries while providing tailored solutions to ensure a smooth transition during a new establishment. With in-depth knowledge of the Swiss system and the insurance needs of international companies, My Swiss Company SA helps clients optimize their protection while complying with local regulations.

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