Insurance is a part of our everyday lives, even if only in a passive way. This also applies to companies and their employees. We’ll explain what types of insurance are available and which ones are mandatory for employees.
Overview of Insurance Options for Businesses
Probably the most important question is: What types of insurance are actually available for employees? We’ll answer that question right away. To keep things simple, the insurance plans are divided into clear categories.
Social Insurance
The Three-Pillar Principle
The Swiss pension system is divided into three pillars, which include the following types of pension plans:
- Pillar 1 – Government Pension System: Pillar 1 comprises the OASI, IV, and supplementary benefits. The goal of the government pension system is to ensure a basic standard of living.
- Pillar 2 – Occupational Pension Plan: Pillar 2 comprises the mandatory BVG, the UVG, and the supplementary pension plan. The goal of the occupational pension plan is to ensure that individuals can maintain their accustomed standard of living.
- Pillar 3 – Individual Retirement Savings: Pillar 3 comprises tied retirement savings (Pillar 3a) and unrestricted retirement savings (Pillar 3b). The goal of individual retirement savings is to supplement the first two pillars on an individual basis.
The First Pillar (OASI, IV, and EL)
The first pillar is mandatory for companies. It provides protection against old age, disability, and death. Employers are required to register all their employees—whether Swiss or foreign nationals—with the appropriate compensation fund. The first pillar is also mandatory for self-employed individuals. You can find more information on this topic in our guide titled “Registering as Self-Employed.”
The Second Pillar (BVG and UVG)
Occupational pension plans are voluntary for sole proprietorships and partnerships, and individuals may join a pension plan administered by their professional association or the BVG Substitute Pension Fund. For limited liability companies (GmbHs) and stock corporations (AGs), however, it is mandatory for annual salaries of CHF 22,680 or more (as of 2025).
Workers’ compensation insurance is mandatory for employees of all types of businesses. Owners of sole proprietorships or partnerships can obtain coverage either through their company or privately through their health insurance provider.
Accident insurance for non-occupational accidents (NBU) is mandatory for employees who work an average of 8 hours per week, regardless of the company’s legal form.
The Third Pillar
Anyone who wants to supplement their retirement income can voluntarily set up a third-pillar pension plan. More information is available on the federal government’s information portal.
Unemployment Insurance
Employers are required to register their employees for unemployment insurance (ALV). Registration takes place at the same time and with the same insurance fund as registration for OASI. Only employees can be insured under the ALV.
Daily Sickness Benefit Insurance
Companies in Switzerland are required to continue paying an employee’s salary for a certain period of time, even if the employee is unable to work. This can place a significant financial burden on companies, as wages are paid without any corresponding work being performed. Daily sickness benefit insurance protects against this risk. Daily sickness benefit insurance ensures continued salary payments during employee absences due to illness. Half of the premiums may be charged to the employee. While daily sickness benefit insurance is voluntary for all legal forms of business, it is generally recommended.
Property and Casualty Insurance
In addition to insurance for employees, there is also insurance for the company’s assets. In this regard, it is up to each company to decide which risks it wishes to cover and which insurance policies it wishes to purchase.
Business Liability Insurance
Business liability insurance is recommended for virtually every company. The specific risks that should be covered vary from industry to industry. The following risks can be covered:
- Operational risk: Losses arising from business operations.
- Investment Risk: Losses arising from liability as the owner or tenant of commercial real estate.
- Product risk: Damage caused by design or development defects in products.
In addition, certain special risks can be insured against.
(Source: Swiss Confederation, “Insurance: What Is Mandatory, and What Is Advisable?”)
Legal Expense Insurance
Legal protection insurance protects a company against risks arising from a legal dispute. If a company becomes involved in a legal dispute, the insurance generally covers all costs incurred in connection with the dispute. Legal protection insurance is optional for all types of businesses.
Property Insurance
Property insurance comes in two different types:
- Building Insurance: Building insurance is mandatory for building owners—that is, for companies that own their own property. This insurance covers, among other things, fire and natural disasters, although the scope of coverage varies by industry.
- Property Insurance: Everything located inside a company’s building is considered property. This type of insurance is optional, but recommended depending on the industry.
What types of insurance are mandatory for employees?
OASI, IV, BVG, and UVG (BU) are mandatory for employees. For employees who work an average of more than 8 hours per week, non-occupational accident insurance (NBU) is also mandatory. To help you keep track of the various insurance plans, we have compiled a table. This table shows which insurance plans are mandatory for employees.
| Sole Proprietorship and General Partnership | Corporation or LLC | |
| OASI, IV | Required | Required |
| ALV | Uninsurable | Required |
| Family Allowances | Required | Required |
| EO | Required | Required |
| UVG (BU) | Mandatory for employees; business owners can obtain insurance either through their company or through their health insurance provider | Required |
| UVG (NBU) | Mandatory for employees working 8 hours or more per week; business owners can obtain insurance either through their company or through their health insurance provider | Required for those working 8 hours or more per week |
| BVG | Mandatory for employees with an annual salary of CHF 21,510 or more (or CHF 22,050 or more starting in 2023); otherwise, it is voluntary | Mandatory for annual salaries of CHF 21,510 or more (or CHF 22,050 or more starting in 2023) |
| KTG | Voluntary | Voluntary |
| Business Liability Insurance | Voluntary | Voluntary |
(Source: Swiss Confederation, “Insurance Companies by Legal Form”)
Additional Questions About Employee Insurance
What types of insurance are available for employees?
There are many different types of insurance available to employees. Mandatory insurance includes OASI, IV, BVG, and UVG (BU).
What types of business insurance are available?
Business insurance can be broadly divided into two categories: property insurance and liability insurance. Property insurance protects the company’s property and real estate, while liability insurance protects the company’s assets.
What kind of insurance do I need as a small business owner?
As a small business owner, you are required to register with the compensation fund. You can purchase UVG insurance through your company or get coverage through your health insurance provider. It is also recommended that you obtain KTG insurance.