SME insurance: which insurance is mandatory and which is voluntary?

A flooded warehouse, stolen customer data, claims for damages, currency losses, long-term illnesses of employees or a major fire are loss events that usually occur unexpectedly and can destroy businesses and livelihoods. 

Regardless of what services SMEs offer, they should always make sure they have the right insurance coverage. The “right” level of protection varies from business to business, with the exception of mandatory insurance.

Certain types of insurance are compulsory in Switzerland. A company that cannot provide proof of the following insurance is in breach of the law:

Many types of insurance are not mandatory, but can protect SMEs from significant losses. Voluntary insurance is tailored to the size, type and specific requirements of a company.

The insurance requirements of SMEs are complex, which is why companies should make sure they choose the right provider from the outset. It is not just a matter of finding the cheapest offer – service quality and many other factors are also crucial.

Pay attention to customer service

Good customer service that is responsive and treats you seriously is important in general interactions, not just in the event of a claim. Insurance advisors should always focus on providing individual support that is truly tailored to the needs of SMEs.

Good service also means being easy to contact. SMEs should not only offer customer support by phone or on site, but also be accessible online, via their own website and possibly even on social media. Incidents can then be reported more quickly and processes are easier to track. However, personal consultation should never be neglected.

Understanding pricing models and optimizing costs

Insurance can be a significant cost factor for SMEs and should therefore be reviewed regularly. Nevertheless, SMEs should never focus exclusively on saving money – insurance coverage should always come first. A review is also an opportunity to renegotiate coverage amounts and deductibles. 

To optimize insurance costs, SMEs must always be able to assess their actual risk. How high is the chance of a cyberattack or the risk of loss due to currency fluctuations? It is much better to be realistic than overoptimistic. Around a third of SMEs have already experienced a cyberattack, and according to the National Cyber Security Centre (BACS), the threat is increasing. 

The costs of cyber security insurance can be optimized by comparing different providers or using packages tailored to your needs. As part of our partnership with Zurich, you can get free advice from Zurich’s insurance experts to help you find the right solution for your company’s current insurance needs. As a UBS client, you can even benefit from up to 30% off insurance policies with Zurich.

By the time an insurance company is consulted, the loss has already been incurred – something that companies naturally want to avoid. For optimal protection, in addition to choosing the right insurance, preventive action by the workforce is also required. This includes risk analysis as well as the development of a functioning technological infrastructure.

SMEs should focus on centralized, digital processes and data strategies that report incidents automatically and eliminate potential sources of risk from the outset. Companies should always be up to date with the latest technology, as this is most likely to meet all security criteria. Regular updates, a strong firewall and secure passwords are preventive measures against losses. Compliance with clear regulatory requirements such as FINMA guidelines must also be ensured at all times to prevent risk.

Further training can show employees how to deal with an incident correctly. Employees not only learn how to prevent incidents, but also how to report them quickly. External experts from insurance companies can provide valuable insights and take action in the event of an incident.