Closing the income gap – daily sickness benefits insurance for the self-employed

No – daily sickness benefits insurance is optional for self-employed people in Switzerland. There is no legal obligation to take it out. However, the financial risk is significant without it.

While employees are protected by Article 324a CO, self-employed people bear the loss of earnings risk themselves. This affects a sizeable group of people: according to the Federal Statistical Office (2025 figures), some 15.1% of people in work in Switzerland are self-employed and are therefore not entitled to continued salary payments.

If you become ill as a self-employed person, your income ceases immediately, but your private fixed costs and operating costs still have to be paid. Basic insurance (KVG) covers medical expenses, but it does not compensate you for loss of earnings.

Neither accident insurance nor daily sickness benefits insurance are compulsory for the self-employed, so you bear the full loss of earnings risk yourself. Voluntary daily sickness benefits insurance closes this gap and ensures your financial security.

Self-employed people are not protected by Art. 324a CO. If you are unable to earn an income due to illness, there is no statutory safety net. Disability insurance usually only starts paying out after 365 days, and the period in between remains completely uncovered.

Many self-employed people believe that basic insurance (KVG) also covers loss of earnings, but that is not the case. Basic insurance covers medical expenses and medicines, but it does not compensate you for your loss of earnings. 

Various costs still have to be covered in the event of illness:

• Office rent and business premises
• Leases for vehicles and equipment
• Employee salaries
• Health insurance premiums (private and business)
• Mortgage payments and private housing costs 
• External substitute or temporary workers

Without daily sickness benefits insurance, self-employed people bear these risks alone. 

1.  An IT freelancer with burnout: A freelance software developer is unable to work for three months. Her office rent, licences and health insurance premiums still have to be paid. Without daily sickness benefits insurance, she loses her entire income. With daily sickness benefits insurance, she receives daily benefits from the end of the waiting period which she can then use to cover her operating and living expenses.
2. 2. A practice owner who suffers a prolonged illness: A physiotherapist falls seriously ill and is absent from work for months. During this time, she has to pay for a stand-in. Her daily sickness benefits insurance covers her income while her practice continues to operate.

Many self-employed people follow a simple rule of thumb: the insurance should cover 80% to 90% of their income. Although this figure sounds plausible at first, in practice it is often insufficient.

The reason is that this rule of thumb usually only takes into account personal living costs. However, fixed operating costs such as office rent, leases, software and insurance often continue in the event of illness. To realistically assess your actual needs, therefore, you need to add up both your personal fixed costs and those of your business.

In other words, the key factor for daily benefits is not your income but the total amount of money you need each month.

1. Calculate your fixed operating costs

First, add up all the ongoing costs that your company will still have to pay in the event of your incapacity.

Example (monthly figures):

• Office rent: CHF 1,500
• Leases: CHF 400
• Software and licences: CHF 200
• Insurance: CHF 200

Total fixed operating costs: CHF 2,300 per month

2. Calculate your private fixed costs

Then add up your personal expenses, which must also be covered.

Example (monthly figures):

• Housing costs: CHF 2,000
• Health insurance: CHF 400
• Living costs: CHF 1,800

Total private fixed costs: CHF 4,200 per month

3. Determine your total monthly requirement

Now add the fixed operating and private costs together:

CHF 2,300 + CHF 4,200 = CHF 6,500 per month

Your recommended minimum daily allowance is around CHF 217 per day

Suppose your net income after AHV contributions is CHF 84,000 per year, i.e. CHF 7,000 per month.

If you follow the rule of thumb and insure 80% of your net income, this results in a figure of: CHF 5,600 per month.

However, your actual monthly expenses in the example are CHF 6,500 per month. 

You therefore have a coverage gap of CHF 900 per month.

This shows precisely why you should calculate your daily benefits individually instead of relying on benchmark figures.

Note

This calculation example is intended as a guide. The amount you personally need depends on a number of factors, such as your industry, business model, family situation and financial reserves.

A personal consultation will help you to customise the insurance cover to your specific situation.

Daily sickness benefits insurance replaces your income in the event of temporary incapacity for work. After the agreed waiting period has expired, you receive what are known as daily benefits – in other words, a daily allowance that you are free to use as you see fit. For policies taken out under the VVG, the duration of benefits is generally up to 730 days per benefit case. This means that the insurance bridges the critical phase until any Federal Disability Insurance (IV) pension commences.

Optional additional components such as daily accident benefits or supplementary maternity benefits can also be included. The accident add-on is particularly relevant for self-employed people without compulsory UVG cover.

One important difference relates to the type of insurance: in the case of agreed value insurance, a sum insured that was agreed in advance is paid out, regardless of the actual loss. In the case of indemnity insurance, the benefits are based on the actual loss incurred. For self-employed people with fluctuating incomes, agreed value insurance is usually more advantageous. It offers predictability because the amount of the daily benefits is fixed from the outset.

Daily sickness benefits insurance under the VVG comprises several core benefits. The scope varies depending on the provider and the package you choose. The following components are typical:

• Compensation for loss of earnings: daily benefits in the event of medically certified incapacity for work of 25% or more (VVG). Depending on the contract, the compensation rate is 80%, 90% or 100% of the insured salary.
• Duration of benefits up to 730 days: per benefit case, not cumulatively across all illnesses. This ensures continuous protection even in the case of recurrent illnesses.
• Fixed salary total: agreed value insurance covers a fixed amount. This is a clear advantage for self-employed people without regular salary payments.
• Supplementary daily sickness benefits insurance with two daily benefits amounts: different daily benefits rates can be agreed depending on the waiting period. This gives you control over the amount of the premium.
• Supplementary maternity benefits: supplements statutory maternity benefits and closes the income gap during maternity leave.
• Surplus sharing: at Allianz, surplus sharing is possible from an annual premium of CHF 2,000. This rewards claims-free years.

Daily sickness benefits are paid out as a fixed amount. You decide for yourself what to use them for. Typically, they are used to cover the following cost categories:

• Loss of earnings: your income, which ceases completely during your incapacity for work.
• Private fixed costs: rent or mortgage payments, health insurance premiums, living expenses and other personal costs.
• Operating costs: office rent, leases, software licences, employee salaries and other fixed operating costs that continue in the event of illness.

Daily sickness benefits insurance under the VVG covers a broad range of health risks:

• Physical illnesses: from flu to back problems to serious diagnoses such as cancer.
• Mental illnesses: burnout, depression and other psychological conditions are regarded as illnesses and are also insured.
• Add-on for pregnancy and maternity: daily benefits (duration and/or amount) for absences due to maternity which go beyond statutory maternity cover.

Despite the broad scope of benefits, there are clear limits. In general, the following are not covered:

• Permanent disability: in the event of permanent disability, disability insurance (IV) and, if applicable, the BVG disability pension assume the costs. Daily sickness benefits come to an end after the agreed benefit period.
• Pre-existing conditions subject to restrictions: insurers may impose health restrictions on VVG policies excluding certain pre-existing conditions. These may apply indefinitely.
• Incapacity for work for which you are responsible yourself: depending on the contractual conditions, certain exclusions may apply. The exact provisions are set out in the General Terms and Conditions of Insurance.

There is no universal answer to this question. The premiums for daily sickness benefits insurance vary considerably and depend on several individual factors:

• Age and health (pre-existing conditions)
• Industry and occupational risk profile
• Amount of daily benefits and desired salary compensation rate
• Waiting period
• Additional benefits such as daily accident or supplementary maternity benefits

Since the premiums for daily sickness benefits cover can differ significantly between individual providers, it is well worth comparing them. The most reliable way to find out your insurance premium is to obtain a personalised quote.

Daily sickness benefits insurance covers your income in the event of illness. However, self-employed people often need more than just one type of cover. The following insurance policies complement daily sickness benefits insurance and provide comprehensive cover for your company.

• Commercial and professional liability insurance: Covers you against claims for damages from third parties, such as personal injury or property damage caused by your professional activity. Depending on your sector, this insurance may be essential for your company’s financial security. 
• Business interruption insurance: Unlike daily sickness benefits cover, which compensates you for the loss of your personal income, this insurance specifically covers additional operating costs. These include, for example, costs for employing stand-ins or outsourcing contracts in the event of your extended absence.
• Property insurance: This covers your company’s inventory, including machinery, tools, IT infrastructure and furnishings. That way, you are protected financially in the event of fire, water damage and theft.
• Accident insurance: Self-employed people without employees do not have compulsory insurance under the Accident Insurance Act (UVG). Voluntary accident insurance under the UVG or the VVG closes this gap and covers medical expenses and loss of earnings following accidents. 
• Occupational pensions (BVG): Self-employed people can join a pension fund voluntarily. This comprises disability insurance and retirement provision and supplements the daily sickness benefits in the event of permanent incapacity.

It is worth looking at all the different types of cover together, especially when starting up or expanding your company. Allianz offers self-employed people an all-round solution from a single source – that way, you can coordinate all your policies with a single advisor.

In Switzerland, there are two legal bases for daily sickness benefits insurance: the Health Insurance Act (KVG) and the Insurance Contract Act (VVG). Both allow for the provision of daily benefits insurance, but they differ considerably in practice. For self-employed people, the choice has a direct impact on the scope and flexibility of the cover and the amount of the daily benefits.

Important practical consideration: the fact that acceptance is compulsory under the KVG sounds advantageous at first. In practice, however, many KVG insurers only offer very low daily benefits rates. The KVG does not prescribe a minimum amount for daily benefits. Daily benefits of CHF 10 to CHF 30, for example, are far from sufficient to cover your lost earnings as a self-employed person. In other words, mandatory acceptance does not automatically mean good cover.    

Daily benefits insurance under the VVG offers much more flexibility. The amount of the daily benefits, the waiting period and the additional benefits can be adjusted individually. The disadvantage of this type of insurance is that the insurer can reject applications or impose health restrictions permanently excluding certain pre-existing conditions from the cover. Such restrictions may apply indefinitely. For that reason, it is important to take out the insurance while you are in good health.

Allianz only insures self-employed people under the VVG. As a result, you enjoy flexible waiting periods, a choice of daily benefit amounts and a benefit period that applies per benefit case.

When it comes to taking out daily sickness benefits insurance for self-employed people, there are typical stumbling blocks that can cost you a lot of money in an emergency. The good news is that they can all be avoided with a little preparation:

• Taking out the insurance too late, i.e. after you have already fallen ill: if you only apply for daily sickness benefits insurance under the VVG after a health event, you run the risk of being rejected or having a permanent health restriction imposed on you. For that reason, you should take out this cover while you are healthy.
• Short waiting period despite liquidity reserves: a short waiting period means higher premiums. If you choose this option despite having plenty of reserves, you will pay too much.  Conversely, a long waiting period reduces your premium but requires that you have sufficient reserves.
• Insured income too low: many self-employed people only insure their personal living costs, forgetting about fixed operating costs such as office rent, leases and employee salaries. In the event of a claim, the daily benefits will not be sufficient.
• Incorrect or incomplete health declaration: anyone who fails to disclose relevant pre-existing conditions in the health declaration risks having their benefits reduced or rejected entirely in the event of a claim. In the long run, it is much better to be transparent.
• Forgetting to add accident cover despite having no UVG insurance: self-employed people without employees do not have compulsory insurance under the Accident Insurance Act (UVG). Without the optional add-on for accident benefits in the daily sickness benefits insurance, loss of earnings will not be covered at all after an accident.

A personal consultation will help you to avoid these stumbling blocks from the outset. Your Allianz advisor will assess the waiting period, insured income and additional components together with you to ensure that your daily sickness benefits insurance fits your situation perfectly.

Anyone starting their own business needs insurance that combines both flexibility and reliability. This is exactly what Allianz offers with its daily sickness benefits insurance under the VVG. You choose the waiting period that suits your liquidity situation – 14, 30 or 60 days. This allows you to manage your premium in a targeted manner and keep control of your expenses.

Personalised advice isn’t just an empty promise: your Allianz Suisse advisor will support you personally from the outset. Together, you determine the amount of daily benefits, the additional components and the waiting period that are precisely suited to your business model. And in the event of a claim, you benefit from quick, straightforward claims handling. Allianz focuses on short distances and clear communication, enabling you to concentrate entirely on your recovery.

One advantage that many self-employed people are unaware of is that the premiums for daily sickness benefits insurance are tax-deductible as business-related expenses. This noticeably reduces your tax bill. Since cantonal practice may vary in individual cases, we recommend that you clarify the exact details with your tax expert.

Whether it’s ensuring your livelihood, tax optimisation or simply the good feeling of being prepared: with Allianz, self-employed people can look to the future with confidence.