Employees working for companies are well protected in the event that they lose their earning capacity as a result of an illness or accident. However, things look rather different for self-employed workers within a sole proprietorship. Why? Because they are not automatically insured against accident and illness.
Daily sickness allowance insurance? What you need to consider
It is critically important that you ensure you are sufficiently protected to avoid suffering huge drops in income. If you have chosen the legal form of a sole proprietorship and no other persons are employed by this company, you can take out a daily sickness allowance for immediate support after an incident (with a maximum duration of 720 or 730 days). How long you must wait after an accident or falling ill until the insurance pays out (the waiting period) depends on a variety of factors. Depending on your job and your financial situation, you may be able to bridge a long waiting period yourself and save on premiums. You should also make the amount of daily allowance dependent on your personal and family situation.
Permanent loss of earning capacity
However, you do not only need to protect yourself against short periods of being unable to work. You should also take out a pension for loss of earning capacity offering financial cover against accidents and illness, coming into effect after no fewer than 12 months and no more than 24 months. In the case of total disability, benefits from disability insurance (Pillar 1) depend on the years of contribution, income and possible education and care credits, and range from CHF 1,195 to CHF 2,390 per month. Please note that this calculation does not take child’s pensions into account.
Find out more
Part 1: general information about a loss of earning capacity caused by accident or illness can be found in our article «Loss of earning capacity as a result of illness or accident».
Part 2: Do you want to find out more about a permanent loss of earning capacity? If so, read part 2 now: «What if a loss of earning capacity eventually turns into disability?».