The short answer
A fire or flood can affect the building, business contents and the ability to work. Each of these three areas has its own insurance basis, values, locations and excesses. For natural hazards damage, a legal framework governs the cover linked to fire insurance, but its scope is specific and does not extend to every natural event.
Three areas, three separate reviews
The building is often insured by its owner, through a cantonal building insurer or a private insurer depending on the canton. Business contents (machinery, furniture, stock) generally fall under property insurance, but some cantons also include movable property in a cantonal scheme. In the canton of Vaud, fire and natural hazards insurance for business movable property falls under the cantonal building insurer (ECA). Other risks and the consequences for business operations require a separate review of your cover. A halt or reduction in activity falls under separate business interruption cover, if this has been taken out.
For each area, check the insured value, locations, specified risks and excesses.
What the natural hazards damage framework says
The Swiss Financial Market Supervisory Authority (FINMA) describes a scheme under which cover for certain natural hazards damage accompanies fire insurance with private insurers, with a list of events and limits. This scheme has defined boundaries: certain types of damage or events fall outside it, and earthquakes are not included. Cantons with a cantonal insurer have their own rules for buildings, and sometimes for movable property.
Keep one simple point in mind: a "natural event" in everyday conversation does not mean a "covered event" under your policy.
Dependencies that matter
Damage at your own premises is not the only scenario. Flooding at a key supplier's premises, closure of an access route or an outage at a shared installation can stop your operations without affecting your property. List these dependencies and ask whether they are covered, and on what terms.
Prepare for the review
- Buildings, property and business interruption policies side by side
- Up-to-date values for each site
- Covered and excluded events recorded for each policy
- Excesses compared for each event
- External dependencies listed
Frequently asked questions
Does fire insurance cover all natural events?
No. The scheme covers defined events within specified boundaries. Read the list in your policy and ask about any scenario that is not clearly included.
Are earthquakes included?
They are not part of this natural hazards damage scheme. Specific cover may be available; check directly with your insurer.
Are the rules the same in every canton?
No. Several cantons have an insurer that covers buildings and, in some cases, movable property: in the canton of Vaud, business movable property is insured against fire and natural hazards with ECA. Check the scheme applicable to each site.