Liability insurance is not mandatory, yet no one can do without it. Even the best intentioned people may inadvertently become liable for damages, thereby incurring major financial risks. Those without insurance that covers accidental damage inflicted on third parties have to bear the resulting costs themselves.
Liability insurance covers personal injury and damage to property (and the consequent financial losses), damage prevention costs and challenges to unjustified claims. Damages caused in a professional capacity are excluded from coverage.
Additional coverage can be taken out for occasional (that is, infrequent and irregular) use of a third-party motor vehicle or for liabilities arising from a sideline activity.
The guaranteed amount can be chosen at will. It usually varies between CHF 5 and CHF 20 million.
Professional liability insurance
Corporations and professionals also need extensive liability coverage. Certain professionals such as doctors, lawyers and notaries are obliged to insure their practice.
The Swiss Insurance Association SIA has established standard liability insurance terms and conditions for some insurance segments. These can be used for training purposes and also facilitate market access for insurers who have not joined the SIA.