Accidents can quickly become very expensive

Just imagine: while assembling some machinery at a customer’s premises, one of your employees accidentally damages a valuable piece of furniture. Far from ideal, of course, but you might still be able to cover the repair or replacement costs. However, if an assembly error leads to an accident in which someone is injured, claims for damages and consequential costs can quickly spiral out of control. Personal injury claims like these can soon reach a point where a company’s very existence is under threat.

When do businesses need liability insurance?

Every business is liable for any loss or damage caused by its business activities. For example, a company may cause personal injury, property damage or resulting financial loss to its customers, a landlord, a business partner or any other third party. Public and professional liability insurance covers businesses against the financial consequences of claims for damages like these. The insurer will assess the extent of the liability, settle legitimate claims depending on the level of cover agreed and defend the company against any unjustified or excessive claims.

What does public and professional liability insurance cover?  

Public and professional liability insurance covers your company’s statutory liability for any personal injury or property damage caused to third parties. In particular, the insurance coverage applies to loss and damage arising in connection with: 

• and, buildings, commercial premises or facilities belonging to your company (premises risk);
• your business operations and the work carried out by your employees (operational risk);
• products that you manufacture, distribute or supply (product risk). 

What’s the difference between public liability and professional liability in Switzerland? 

Essentially, one describes liability arising from business operations, while the other refers to liability arising from occupational activities. We’ll explain the differences between these two types of insurance in more detail below. 

Sometimes, it’s worth taking stock

Has your business changed – for example, have you moved into new areas of activity, products, locations or markets, or has your workforce expanded? If so, you should think about reviewing your insurance cover. That way, aside from knowing exactly where you stand, you can ensure your insurance cover is keeping pace with your business and the risks you’re exposed to. 

Tailoring insurance cover to your industry

The risks to a manufacturing company are quite different from those facing a construction firm, an architect’s office or a trustee. Every industry and every profession has its own specific requirements when it comes to public or professional liability insurance. That’s why insurance cover should be tailored to a company’s industry, the nature of its business, its size and the geographical area in which it operates. Helvetia offers extended coverage and industry-specific solutions in addition to basic cover.