[Protect & pass on](https://www.helvate.ch/en/insights/categorie/protect-pass-on)# Business liability insurance: protecting your business against damage caused to third parties An accident or damage caused in the course of a business activity can make a company liable and lead to significant costs. Business liability insurance protects it against some of the financial consequences of such events. A company can be held liable when damage is caused to a client, a supplier, a visitor or another third party in the course of its activity. Within the limits of the policy, business liability insurance covers the insured claims and examines whether the claims made against the company are justified. Published on 18 September 2026 Updated on 25 September 2026 3 min read [](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.helvate.ch%2Fen%2Finsights%2Fbusiness-liability-insurance-protecting-your-business-against-damage-caused-to-third-parties) [](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.helvate.ch%2Fen%2Finsights%2Fbusiness-liability-insurance-protecting-your-business-against-damage-caused-to-third-parties&text=Business+liability+insurance%3A+protecting+your+business+against+damage+caused+to+third+parties) [](mailto:?subject=Business%20liability%20insurance%3A%20protecting%20your%20business%20against%20damage%20caused%20to%20third%20parties&body=https%3A%2F%2Fwww.helvate.ch%2Fen%2Finsights%2Fbusiness-liability-insurance-protecting-your-business-against-damage-caused-to-third-parties) Contents ## What risks can business liability insurance cover? Business liability insurance mainly covers bodily injury and property damage caused to third parties, as well as certain resulting financial losses. It can cover, among other things, risks related to operations, premises and facilities, or products manufactured, sold or delivered. A customer injured on the premises, an employee who accidentally damages property at a client's site or a defective product that causes damage are examples of situations in which the company may be held liable. ## Is business liability insurance compulsory? In Switzerland, business liability insurance is generally not compulsory. Depending on the activity carried out, however, specific regulations may require certain liability cover. It is therefore necessary to check the requirements applicable to the sector concerned. Even when it is optional, business liability insurance can be essential: serious bodily injury or substantial property damage can quickly amount to sums that are difficult for a company to bear on its own. ## Business liability vs professional liability: what is the difference? The two types of insurance do not cover the same kind of risk. Business liability insurance mainly concerns damage related to the running of the company, its premises, its employees or its products. Professional liability insurance concerns the financial consequences that may result from an error, an omission or a failure committed in the actual practice of a profession. It is particularly important for advisory activities and certain regulated professions. A company may therefore need both types of cover when it is exposed both to operational risks and to risks directly linked to the services it provides. ## Cover tailored to each activity A shop, a restaurant, a construction company and a service company do not face the same risks. The policy must therefore be built around the activity actually carried out. The amount of cover, the deductible, the insured activities, any extensions and the exclusions must be examined carefully. A change in the company's activity may also require the cover to be adjusted. ## Protecting your company against the unexpected Business liability insurance prevents damage caused to a third party from weighing directly on your company's finances. At [**Helvate**](#cta), we analyse your activity and its specific risks in order to identify the cover you need and put in place protection suited to how your business operates and evolves. 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