Commercial General Liability Insurance in Switzerland: A Basic Guide

Engaging in any kind of commercial activity involves a certain amount of risk. Service providers bear liability for losses incurred by clients due to incorrect or inadequate service delivery. Manufacturers may be liable for damages to leased machinery, environmental hazards, injury to employees or damages caused by flawed products. Construction and agricultural businesses are prone to numerous material risks.

Even accidental injuries on the premises of a business can lead to significant liability claims if it is determined that the business failed to perform due diligence in ensuring that its property was free from hazards.

Because liability claims can potentially run into tens of thousands or even millions of francs – depending on the scenario – it is understandable that many businesses want to insure themselves against claims which could potentially cripple them.

Commercial general liability insurance provides financial protection against many different kinds of liability claims. Swiss insurance providers also help businesses to determine whether they are in fact liable when claims are made.

Which Swiss insurance providers offer commercial general liability insurance?

Commercial general liability insurance is offered by most major Swiss universal insurance companies, including Allianz, Axa, Baloise, Generali, Helvetia, Mobiliar, Vaudoise, and Zurich.

What is covered by commercial general liability insurance?

The exact coverage provided varies between insurance providers. Generally, policies cover costs resulting from the injury, illness, health problems or death of individuals when the insured business is found to be legally liable.

Damage or loss of movable and immovable property (rented commercial property, for example) owned by third parties is also typically covered. Liability for environmental hazards for which an insured business is held liable is also normally covered. Liability resulting from the production, delivery and trade of products is also generally covered.

In some cases, Swiss commercial general liability insurance also covers the cost of measures taken to prevent covered hazards when there is an imminent risk. For example, the costs of measures taken to prevent an environmental spill or to recall faulty products may be covered.

Some policies also cover certain legal costs resulting from liability claims against insured businesses.

Do all commercial general liability insurance offers cover the same things?

Insurance providers generally offer specialized coverage in addition to their standard coverage. Policies may be specialized to meet the needs of specific industries, and include coverages which are relevant to the industries they serve. Other insurers offer a basic policy with the option of adding supplemental riders which suit the needs of your business.

Is commercial general liability insurance obligatory?

Commercial general liability insurance is voluntary, but there are exceptions.

Businesses that handle other people’s cars, such as garages and car dealers, are required to get liability insurance for possible damages to these vehicles. This requirement is laid out in Article 71 of the Swiss road traffic law.

Individuals who are self-employed in certain occupations are required to get occupational liability insurance. The occupations for which occupational liability insurance is obligatory vary between cantons, but typically include doctors and lawyers, among others.

Do you need commercial general liability insurance?

Liability claims pose a genuine threat to several businesses. Unless you are confident that the activities which your business engages in cannot result in liability claims being made against it, getting commercial general liability insurance is a good move.

What should I consider when getting commercial general liability insurance?

Commercial general liability insurance policies can be fairly complex. Getting advice from an independent insurance consultant can help you determine the insurance needs of your business so that you can find a policy to match.

Policies generally have limits on the sums insured per claim. Different limits may apply to different types of liability claims. Policies also typically limit the total insurance benefits which a business can claim each year. Make sure that the limits of the policy which you settle on are high enough to adequately cover liability claims in a worst-case scenario.

Are there any legal liability claims that are not covered?

Yes. It is also important to carefully review all exclusions before you sign up for a policy. A long list of exclusions apply to commercial general liability insurance, and these vary somewhat between policies. 

Some policies do not cover liability claims made against subsidiaries outside of Switzerland. Some do not cover liability claims originating in the United States or Canada. Some policies exclude claims resulting from specific health hazards (asbestos, for example). Certain types of vehicles (aircraft, for example) may be excluded from liability coverage.

As with personal liability insurance, liability for damages resulting from wear and tear (to rental premises, for example) is generally excluded from coverage.

How can you save on insurance premiums?

Premiums vary based on the specific coverages included in the policy, the deductibles used and the sums insured. This gives businesses a lot of room to save.

• Get relevant coverage only

Selecting only the coverages which apply to your business and excluding unnecessary coverage is a good way to cut the cost of premiums. Avoid including coverage which is irrelevant to your business. Don’t let insurance agents or other representatives talk you into including coverage which you do not need.

• Compare offers

Once you have determined what insurance coverage your business needs, requesting quotes from multiple insurance providers is a good next step. There are many variables which can affect the premiums you pay, and insurers generally do not publish their premium schedules openly. Getting quotes based on the exact specifications of your business is the only way to know exactly how much your business can expect to pay. Comparing quotes from many different insurance companies lets you compare applicable premiums and select the most affordable policy.

• Choose the right sum insured

Some insurers let businesses choose the sum insured per-claim and per year for their policy. If the risks associated with your business are not likely to result in very high liability claims, choosing low benefit limits can significantly reduce the cost of insurance. However, you should be sure that insurance limits adequately cover possible liability risks.

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