Working from home under the LAA: implications of daily sickness benefits and employer liability insurance when the employee is at home

Working from home under the LAA: implications of daily sickness benefits and employer liability insurance when the employee is at home

Working from home has a particularity that complicates claims: the home becomes a workplace, without ceasing to be a living space. As a result, in the event of an incident, the real question is not "what insurance do we have?", but "how do we classify the facts, what evidence should we produce, and which reporting procedure should we activate?"

The underlying reality is simple: accidents at home are frequent. Suva reports that 33% of leisure accidents occur at home (2018-2022 data), representing an average of over 180,000 accidents per year, with treatment and compensation costs estimated at around CHF 780 million annually.

This guide provides concrete guidance (Switzerland) for managing three interconnected aspects of remote work: accident insurance (LAA), daily sickness benefits (IJM), and employer's liability insurance. You'll leave with a simple method for making decisions, documenting, and monitoring your coverage, plus a checklist, two mini-case studies, and 10 questions to ask your insurer/broker.

Working from home under the LAA: classifying the event and securing the declaration

The game-changing threshold: 8 hours per week

In Switzerland, employers must insure their employees against occupational accidents. Coverage for non-occupational accidents is only mandatory if the person works at least 8 hours per week for the same company.

Why this is a "teleworking" topic: at home, the alternation between work, breaks, and personal tasks is more frequent. In the event of an accident, the classification as "work-related/non-work-related" may depend on the timing and the connection to the activity at the precise moment. This is a matter of facts (which need to be documented), not a discussion of opinion.

Two useful numerical benchmarks for managing a "gap"

Two figures from official sources help to make a diagnosis of coverage (without prejudging the details of your contract):

• Maximum guaranteed LAA gain: CHF 148,200 per year (CHF 406 per day)

• Daily allowance under the LAA (Accident Insurance Act): 80% of insured earnings, paid from the 3rd day following the accident.

CFO reading: If a portion of your salary exceeds the maximum insured amount under the LAA (Accident Insurance Act), there is potentially an area of under-coverage for loss of earnings. This is a governance decision (to be made), not an administrative detail.

Mini case study 1: Fall at home during a work-related task

Scenario: A colleague working remotely injures herself while retrieving a document needed for a meeting. The issue is not to plead a case, but to clarify the situation.

Method "pilot, document, monitor":

• Steering: deciding quickly whether the event should be reported as an accident (LAA) and who is responsible for the quality of the record.

• Document: establish a dated factual account (where, when, what she was doing, what mechanism), and retain contextual elements (meeting invitation, task requested).

• Follow up: update the file if the medical diagnosis or disability changes.

Suva recommends providing as much detailed information as possible, including details about the type of accident, occupation, workstation, and salary information.

Key point: if the facts are ambiguous, don't try to "decide" on your own. Your role is to make the facts verifiable and consistent; the insurer will make a determination based on that.

IJM: Managing illness while working remotely without improvising salary continuity

Without daily sickness benefits: the employer bears the risk of continuity

In the event of illness, if the contract does not include daily allowance insurance, the employer must continue to pay the salary for a period linked to seniority; the SME Portal reminds us that this is at least three weeks during the first year.

When working remotely, the major risk is variability: partial incapacity, alternating periods of "okay" and "no" work, and a gradual return. Without a structured framework, the situation can turn into a debate (HR, operations, finance) instead of remaining a documented process.

With IJM: do not confuse "market standard" and "contractual guarantee"

The same SME Portal indicates that "in practice", most daily sickness benefits entitle employees to at least 80% of their salary for 720 or 730 days during a period of 900 days.

This remains a guideline, not a universal promise: the policy defines your waiting period, your rules for partial incapacity, and your proof obligations. The management process involves reviewing these points with your insurer/broker, then translating them into a simple HR procedure.

Mini case study 2: neck pain, partial leave, request for adjustments

Scenario: an employee working remotely part-time obtains a certificate of partial incapacity for work and requests a job adjustment.

Decisions to be made (without medical intervention):

• Classify the case: illness (daily sickness benefits / continued salary), not accident, unless a sudden event is identified.

• Organizing the recovery: which tasks are compatible, who approves, what review frequency.

• Require legible evidence: certificate, disability rating, duration, terms and conditions.

Meanwhile, teleworking remains subject to health protection requirements. The SECO brochure reminds us that labor law applies regardless of location and that employers must inform and train employees about the physical and psychological hazards associated with their work, including at home.

Employer liability insurance: anticipating liability when work is done at home

The RC does not replace the LAA; it covers a different logic.

Business liability insurance aims to protect against third-party claims for damages related to business activities. An insurer like Generali describes the basic principle: it pays covered third-party claims resulting from property damage or bodily injury, and rejects unjustified claims.

In teleworking, employer liability insurance is treated as a "governance safety net": in what scenarios can a third party (or an insurer) take action against the company, and with what exclusions or deductibles?

Teleworking and the duty to protect: what needs to be demonstrated

The SECO brochure is explicit: the employer's responsibility extends to work-related factors that have repercussions on health, and they must implement the necessary measures when employees work from home. It also reiterates that certain continuous monitoring systems are not permitted; however, the employer may request targeted information (e.g., photos) in cases of well-founded suspicion (SECO, teleworking brochure, URL above).

RC translation: in case of dispute, the best reflex is a file that shows your measures (instructions, training, written rules, follow-up), not an opinion after the fact.

A point often misunderstood: civil actions and workplace accidents

A training document published on regress.admin.ch (federal administration) reminds employers that relevant civil liability provisions include, in particular, Art. 55 CO and Art. 328 CO, and discusses the limits of civil claims in the event of an occupational accident.

Without getting into the legal details, remember the logic: for bodily injury to the employee, the LAA is the main layer; the employer's RC serves to manage liability and recourse scenarios.

Guidelines and checklist

Steering: your minimum decisions (executive, CFO, HR)

1. Mapping your populations:

• Low-rate teleworkers (<8 hours/week): check non-occupational accident coverage and information for the people concerned (SME Portal, "AAP and AANP Accident Insurance", URL above).

• Salaries close to or above the LAA maximum: decide if a supplement is required (AVS/AI Information Centre, memo 6.05, URL above).

1. Appoint a "claims quality" manager (often HR) and a finance contact person (for the impacts of loss of earnings).

2. Formalize a qualification rule:

• Accident: a sudden, dated event with an identifiable mechanism.

• Disease: progression, documented disability.

• Mixed cases: document the facts, report, let the insurer qualify.

Documenting: The time-saving parts kit

What needs to be documented

• Teleworking agreement/amendment: scope, hours, breaks, confidentiality.

• Description of tasks that can be done remotely (and limitations).

• Inventory of equipment and instructions (ergonomics, IT security).

• Health/safety instructions + proof of delivery/training (SECO, teleworking brochure, URL above).

• Accident/illness notification procedure (who, when, how).

• Incident file: factual account, background documents, medical certificates.

Common mistakes and how to avoid them

1. Leave the file "unclear"

Solution: a standardized factual narrative (where, when, what, how), and pieces of context.

1. Assuming that the IJM is identical everywhere

Solution: review the policy (waiting period, partial incapacity, duration) and translate it into an HR procedure.

1. Forget the 8-hour threshold

Solution: Map low-rate contracts and secure information (and coverage) (SME Portal, LAA AAP/AANP).

1. Having rules for remote work, without proof

Solution: a written agreement + proof of delivery of instructions (SECO, teleworking brochure).

1. To declare late or too vaguely

Solution: use the Suva guidelines on the information to be provided (Suva, "Things to consider when reporting a claim", URL above).

Questions to ask your insurer/broker

1. What specific information do you require to classify an accident that occurred at home while teleworking?

2. How do you handle cases where the event occurs during a break?

3. For employees working less than 8 hours per week, what solution do you recommend for non-work-related accidents?

4. What is our maximum guaranteed earnings under the LAA (Swiss Accident Insurance Act) and is there a gap on certain salaries? (AVS/AI Information Centre, fact sheet 6.05)

5. What is our reporting process (deadlines, documents, channels)? (Suva)

6. In the context of daily sickness benefits, how is partial incapacity defined and what evidence is required?

7. What are our IJM waiting periods and who finances the period before benefits?

8. How to coordinate LAA and IJM if a case is reclassified or evolves over time?

9. Does our company liability insurance include an employer liability extension adapted to teleworking, and what exclusions should we be aware of?

10. What prevention/documentation measures do you expect to be in place to limit disputes?

Conclusion:

Remote work doesn't create additional insurance coverage. It makes governance more demanding: qualify, prove, report, and then improve. In practice, the best "protection" is a method: manage (rules and roles), document (records and evidence), and monitor (lessons learned). A useful next step is a short audit, focused on three scenarios (accident at home, illness with partial leave, dispute), to align your policies, procedures, and documentation.