Fire & natural damage: are you properly insured in Geneva/VD/VS/FR?

Introduction

For SMEs in French-speaking Switzerland – in Geneva, Vaud, Valais, or Fribourg – fire and natural disaster insurance is not just a contractual formality: it's an essential component of risk management. Underpinned by a legal obligation and a national solidarity system, this coverage is designed to protect your assets against rare but potentially devastating events. After reading this, you will know which insurance policies are required or recommended, how to structure your coverage, document your risks, compare offers, and ask the right questions of your insurer or broker.

1. Legal framework and obligations in French-speaking Switzerland

1.1 Fire and natural damage insurance: legal obligation

In Switzerland, coverage for damage caused by natural events must be included in fire insurance. This stems from Article 33 of the Insurance Supervision Act (ISA), which requires private insurers offering fire insurance to include "damage due to natural events" in their contracts, with uniform and mandatory rates and scope.

In practical terms, this means that all business fire insurance policies – whether cantonal or private – must include this minimum coverage. Insurance cannot be sold on the open market without this component.

1.2 Cantonal distinction: GUSTAVO cantons vs. others

The Swiss system is dual:

• In 19 cantons , including Vaud, Fribourg or Geneva (depending on local provisions), there is a mandatory cantonal building insurance system against fire and natural elements managed by a cantonal insurance establishment (ECA) or equivalent entity.

• In the so-called “GUSTAVO” cantons (Geneva, Uri, Schwyz, Ticino, Appenzell Inner Rhodes, Valais, Obwalden), insurance is generally taken out with private insurers , with certain contractual freedoms but always within the federal legal framework.

For an SME based in Geneva, this means checking whether fire/natural damage insurance is part of a cantonal system or whether you have the choice of a private provider.

1.3 What is covered by these insurance policies

The Swiss legislative environment implicitly identifies a list of insured natural risks : high water, floods, storms (strong winds), hail, avalanches, snow pressure, rockfalls, stonefalls and landslides.

These policies focus on direct physical damage to buildings or insured contents. Uncovered risks typically include events such as earthquakes (often insurable separately) or damage resulting from poor design or maintenance.

2. What this means for an SME (risk management)

2.1 Map your exposed assets

Managing effective insurance begins with an inventory of your exposed assets : buildings, workshops, warehouses, stockpiles, technical installations, and machinery. Each of these assets must be assessed: geographical location (flood zones, slopes, avalanche risks), replacement value, and role in operations. All assessments must be documented and updated regularly.

What needs to be documented

• Precise address and GPS coordinates of the facilities

• Building plans showing room uses

• Replacement value of structures and content

• History of disasters (fire or natural)

• Exposure areas (OFEV/PLANAT maps, historical weather data)

• Existing prevention measures (fire suppression systems, drains, retention basins, hail protection)

2.2 Distinguishing between minimum coverage and actual needs

The minimum coverage required by law addresses direct material damages. An SME must assess whether this basic coverage is sufficient in relation to its economic stakes: operating losses, production interruptions, indirect losses, and liability towards affected third parties.

Document your most likely scenarios:

• A fire in your workshop causing several weeks of downtime

• A flood or storm damaging stocks and machinery

• An avalanche blocking access to your infrastructure

Each scenario must be quantified: direct costs, indirect costs, loss of margin, impact on supply chain.

3. Mini case studies

3.1 Scenario A: Manufacturing SME in Nyon (VD)

Objective: To test the current contract in the event of a severe storm. You document that your workshop and sensitive materials (semi-finished products) are exposed to gusts exceeding 75 km/h near a lake. The basic coverage will include direct damage, but not business interruption during the repair phase. The decision may be to add coupled business interruption insurance to ensure continuity of operations. (No fabricated figures – based on typical market coverage.)

3.2 Scenario B: Logistics SME in Valais (GUSTAVO cantons)

Objective: to choose between private insurance offers. Two insurers offer fire coverage that includes natural damage. During the assessment, you compare: the scope of covered risks, deductibles , exclusions (such as the possibility of an earthquake), compensation timeframe, and claims management services. You document these elements in a comparative table for decision-making.

4. Guidelines and checklist for SMEs

| Item to check | Included in the policy | Note/Remarks |

| Fire coverage (fire, smoke, explosion) | Yes/No | as per contract |

| Natural damage (list of risks) | Yes/No | Check precise definitions |

| Deductible | Amount/conditions | |

| Operating losses | Yes/No | Relevance based on activity |

| Specific exclusions | List | earthquake, collapse, maintenance |

| Claims Management Services | Processes and Timelines | |

5. Common mistakes and how to avoid them

Mistake 1: thinking that "everything is covered"

It is implied that a fire insurance policy automatically covers business interruption losses or maintenance-related risks. Check the detailed terms and exclusions.

Error 2: Failure to document local exposure

The French-speaking cantons have micro-risk zones. Without precise mapping, you could underinsure flood-prone areas.

Mistake 3: Forgetting about business continuity

Natural disaster insurance protects physical assets but often not business interruption. Anticipate this need.

6. Questions to ask your insurer/broker

1. Which natural hazards are explicitly covered and what definitions are used?

2. Does fire insurance coverage automatically include natural damage according to art. 33 LSA?

3. What is the standard deductible and how does it change for natural risks?

4. How does the police handle business interruption losses following natural disasters?

5. What documents do I need to provide in the event of a claim for a quick settlement?

6. Are there any exclusions specific to my activity or location?

7. How are premiums for natural risks calculated (solidarity vs. local risk)?

8. Does the coverage apply during construction or renovation work?

9. Are there coverage options for non-standard risks (earthquake, submersion, etc.)?

10. What assistance and claims management services do you offer?

Conclusion

For an SME in French-speaking Switzerland, understanding and managing fire and natural disaster insurance shouldn't be left to chance or jargon. By leveraging the Swiss legal framework, precise documentation of your assets and exposures, and structured questioning during your contractual negotiations, you can build an insurance portfolio that truly protects your key interests. The next step is to audit your current portfolio using the checklist above and engage in a factual discussion with your insurer or broker.