Insurance for Self-Employed: Protect Yourself Effectively
As a self-employed person, you don't benefit from the same protections as an employee. Here are the essential insurance policies.
Mandatory Insurance
1. Health Insurance (LaMal)
- Mandatory for everyone (self-employed included)
- Registration deadline: 3 months after starting activity
- Deductible: 300 to 2,500 CHF (higher = lower premium)
- Comparators: comparis.ch, priminfo.ch
Advice: choose a high deductible if you're in good health.
2. Accident Insurance (LAA)
- Not mandatory if self-employed (covered by basic LaMal)
- But recommended as supplement (better coverage)
3. Occupational Pension (LPP)
- Not mandatory for self-employed
- But strongly recommended (retirement capital)
- Possible to join 2nd pillar as self-employed
Strongly Recommended Insurance
1. Loss of Earnings Insurance (IJM)
- Covers your income in case of prolonged illness/accident
- Essential for self-employed (no salary otherwise)
- Coverage: 80% of income
- Waiting period: 30, 60 or 90 days
- Premium: 1.5-3% of insured income
Example:
- Income: CHF 80,000/year
- Premium: ~CHF 2,000/year
- If 6-month stoppage: you receive ~CHF 32,000
2. Professional Liability Insurance (RC Pro)
- Covers damages caused to your clients
- Mandatory for certain professions (architects, doctors, lawyers)
- Recommended for all: consultants, craftsmen, service providers
- Coverage: 1-10 million CHF
- Premium: CHF 500-2,000/year depending on activity
Examples of claims:
- Advisory error → client financial loss
- Material damage during intervention
- Reputational damage
3. Professional Legal Protection
- Covers lawyer fees in case of dispute
- Useful: client conflicts, contractual disputes, prosecutions
- Coverage: CHF 100,000-500,000
- Premium: CHF 300-800/year
Voluntary Pension (pillar 3a)
Advantages:
- Maximum tax deduction: CHF 7,056 (2025) for self-employed with LPP
- Or 20% of net income (max CHF 35,280) without LPP
- Capital available at retirement or for property purchase
Tax savings example:
- 3a payment: CHF 7,000
- Marginal rate: 35%
- Tax savings: CHF 2,450 (35% return!)
ToBill reminds you of the optimal amount to pay to maximize your tax deduction.
Occupational Pension (LPP) for Self-Employed
Voluntary affiliation possible:
- Join foundation for self-employed
- Contributions: 15-25% of insured salary
- Capital at retirement (or earlier withdrawal for business)
Advantages:
- Tax-deductible contributions
- Capital accumulation
- Better coverage in case of disability/death
Cost: CHF 5,000-15,000/year (depending on salary and age).