Insurance for Childcare Providers: The Complete Guide

Insurance for Childcare Providers: The Complete Guide

Anyone who cares for children in Switzerland bears enormous responsibility — not only pedagogical, but also legal and financial. A single accident, a mishap or a legal dispute can put you as a childcare provider in an existentially threatening situation. The right insurance coverage is therefore not a luxury but a necessity.

In this guide, you will learn which insurances are mandatory for daycares, childminders, playgroups and nannies in Switzerland, which are strongly recommended and what costs you can expect. Whether you are in the process of starting a daycare or becoming a childminder — this guide will help you find the right insurance solution.

---

Why Insurance Is So Important for Childcare

Children are curious, active and sometimes unpredictable. In daily care, accidents can happen despite all precautions: a child falls on the playground, an allergic reaction occurs, or a piece of equipment is damaged. In such situations, the question quickly arises: who is liable?

In Switzerland, the fault principle applies according to Art. 41 CO (Code of Obligations). As a care provider, you have a duty of supervision and can be held liable if you breach it. In addition, employers are liable for their employees (Art. 55 CO). Without appropriate insurance, you bear the full financial risk yourself — and that can quickly run into the hundreds of thousands.

Beyond liability risk, there are other dangers: break-ins at daycare premises, prolonged illness, legal disputes with parents or authorities. A well-thought-out insurance concept protects you, your team and ultimately the children in your care.

Particularly important: even if you work carefully and comply with all safety regulations, you can find yourself in a liability situation as a care provider. Courts interpret the duty of supervision in childcare strictly. Even a brief moment of inattention — such as answering a parent's enquiry — can be considered a breach of duty if a child is harmed at that moment. The following sections show you step by step which insurances you need and what to look for when choosing them.

---

Professional Liability Insurance (Business Liability)

What It Covers

Professional liability insurance — also called business liability insurance — is the most important insurance for every childcare provider. It covers damage that you or your employees cause to third parties (i.e. children, parents or other persons) in the course of professional activities.

Typical claims:

• A child is injured under your supervision and the parents demand compensation
• You accidentally damage a family's property (e.g. expensive clothing, glasses)
• A visitor slips in your premises and is injured
• A child in your care causes property damage during an outing

The insurance first checks whether the claim is justified. Legitimate claims are paid, unjustified claims are defended on your behalf — including coverage of legal and court costs.

Coverage Amount and Costs

For childcare, a coverage amount of at least CHF 5 million for personal injury and property damage is recommended. Many insurers offer specialist policies for childcare facilities.

Costs: Approx. CHF 300–800 per year for individuals (childminders, nannies). For daycares and larger facilities with several employees, premiums are CHF 800–2,500 per year, depending on the number of children and employees.

Is It Mandatory?

Legally, professional liability is not mandatory in most cantons. However, many cantons and municipalities require proof of liability insurance as a prerequisite for the operating licence as part of the licensing requirements. Childminder organisations such as kibesuisse also require valid professional liability insurance.

Recommendation: An absolute must for every childcare provider — regardless of legal obligation.

What to Look for When Taking Out a Policy

When comparing professional liability insurance policies for childcare, the following points are decisive:

• Scope of coverage: Are personal injury, property damage and financial losses included?
• Key loss: Does the policy cover the loss of entrusted keys (e.g. from parents)?
• Outings and external activities: Does coverage apply outside your premises — for example during forest days, swimming pool visits or walks?
• Co-insurance of auxiliary staff: Are interns, temporary staff and volunteers co-insured?
• Excess: How high is the excess per claim? CHF 200–500 is typical.
• Run-off cover: How long does coverage apply after the contract ends for damages caused during the contract period?

---

Accident Insurance (AIA)

Mandatory for Employees

Accident insurance in Switzerland is regulated by the Federal Act on Accident Insurance (AIA) and is mandatory for all employees. As an employer — for example as a daycare director with employees — you are obliged to register your employees with an AIA insurer (e.g. Suva or a private AIA insurer).

The AIA covers:

• Occupational accidents (OA): Accidents during work and on the way to work
• Non-occupational accidents (NOA): Accidents during leisure time (from 8 hours of work per week with one employer)
• Occupational diseases: Illnesses caused by professional activities

Costs

• Occupational accident insurance (OA): Premium paid by the employer. Typically 0.5–2% of the wage bill, depending on the risk class.
• Non-occupational accident insurance (NOA): Premium may be deducted from the employee's salary. Approximately 1–2% of the insured salary.

Self-Employed Care Providers

If you work as a self-employed childminder or freelance nanny, you are not automatically covered by AIA. You can register voluntarily with an AIA insurer or alternatively ensure accident coverage through your health insurance (HIA). Important: HIA accident coverage is less comprehensive than AIA coverage.

Recommendation: Self-employed providers should take out voluntary AIA insurance, as the benefits (80% of insured earnings as daily allowance, medical costs) are significantly better than through HIA.

Supplementary AIA Insurance (SAIA)

The mandatory AIA insurance covers a maximum annual income of CHF 148,200. For senior employees or daycare directors with higher salaries, supplementary AIA insurance can be worthwhile. This also frequently closes coverage gaps in the basic insurance — such as dental treatment costs after an accident or inpatient treatment in semi-private or private wards.

---

Property Insurance and Inventory Insurance

What Is Insured?

Property insurance (also called business contents insurance) protects the inventory and equipment of your childcare facility against:

• Fire, smoke and explosion
• Water (mains water, flooding)
• Burglary and vandalism
• Glass breakage
• Natural events (storm, hail — in Switzerland usually covered by the cantonal building insurance)

For daycares with expensive furnishings, play equipment, IT infrastructure and educational materials, a claim can result in considerable costs. Even as a childminder who has professionally fitted out a room, the coverage is worthwhile.

Costs

• Small facilities / childminders: CHF 150–400/year
• Daycares with extensive equipment: CHF 500–1,500/year

The premium depends on the value of the insured inventory and the chosen coverage amount. Make sure to estimate the value realistically to avoid underinsurance.

Tip: Keep an Inventory List

Create a detailed inventory list with the purchase price and date of all items. This list is invaluable in the event of a claim, as compensation is often drastically reduced without proof. Also regularly photograph your premises and equipment as evidence. Many insurers now accept digital inventory lists that you can maintain with an app.

---

Legal Protection Insurance

Why Legal Protection Is Important

Conflicts cannot always be avoided in daily childcare operations. Disputes with parents about care contracts, employment law disputes with employees, or disagreements with authorities regarding licences — such situations can become expensive.

Legal protection insurance covers:

• Legal fees
• Court and procedural costs
• Costs for expert opinions and mediation
• Collection costs for outstanding parent contributions

Recommended Coverage Areas

The following legal protection areas are particularly relevant for childcare providers:

• Contract law protection: Disputes relating to care contracts
• Employment law protection: Conflicts with employees
• Administrative law protection: For licensing and supervisory matters
• Tenancy law protection: If you rent premises

Costs

• Individuals: CHF 300–600/year
• Businesses: CHF 500–1,200/year

Practical Tip: Note the Waiting Period

Most legal protection insurances have a waiting period of 90 days after the contract is signed. This means: conflicts that arise within the first three months are not covered. Therefore take out the insurance as early as possible — ideally when setting up your childcare offering, not when a conflict is already looming. Also make sure that the insurance covers out-of-court mediation proceedings, as many disputes in childcare can be resolved more quickly and cheaply through mediation than in court.

---

Daily Sickness Allowance Insurance (DSA)

Protection in Case of Illness

If you or an employee falls ill, income loss quickly arises. According to Art. 324a CO, the employer is obliged to continue paying wages in the event of illness — for 3 weeks in the first year of service, then staggered according to years of service (Bern, Basel or Zurich scale).

A daily sickness allowance insurance (DSA) replaces this continued salary obligation and typically pays 80% of the insured salary for 720 days within 900 consecutive days. The waiting period is usually 30, 60 or 90 days.

Who Is It Relevant For?

• Daycares and playgroups with employees: Strongly recommended. The DSA protects both employees and the business from the financial consequences of long-term illness.
• Self-employed childminders / nannies: Particularly important, as there is no statutory continued salary payment. Without DSA, you have no income during a prolonged illness.

Costs

• Approx. 1–3% of the insured wage bill, depending on the waiting period and benefit duration
• The premium is often split equally between employer and employee

DSA vs. Continued Salary Payment Under the CO

Without DSA insurance, the statutory continued salary obligation under Art. 324a CO applies. However, this is severely limited in time: in the first year of service, you as an employer only need to continue paying wages for three weeks. In the case of a serious illness — such as a herniated disc or a mental health crisis — this is far from sufficient. DSA insurance offers both sides significantly more security and predictability. Many employment contracts in the industry therefore provide for a DSA solution as standard.

---

Occupational Pension Scheme (LPP)

Mandatory from the First Employee

As soon as you employ staff who receive an annual salary of over CHF 22,680 (as of 2026), you are obliged as an employer to register them with a pension fund (LPP). The Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans (LPP) forms the second pillar of the Swiss pension system.

What You Need to Do as an Employer

• Join a pension institution (collective foundation, industry association solution or own foundation)
• Cover at least 50% of the LPP contributions (employer share)
• Correctly register employees and submit salary reports

Costs

LPP contributions are age-dependent and increase with the age of the insured person:

• 25–34 years: 7% of the coordinated salary
• 35–44 years: 10%
• 45–54 years: 15%
• 55–65 years: 18%

As an employer, you bear at least half, i.e. 3.5–9% of the coordinated salary. For daycares with several employees, this is a significant cost factor.

Self-Employed

Self-employed childminders and nannies are not subject to LPP obligations, but can join voluntarily. Alternatively, Pillar 3a is recommended for private pension provision. The maximum Pillar 3a contribution in 2026 is CHF 7,258 per year (with LPP affiliation) or CHF 36,288 (without LPP affiliation, max. 20% of net income). These contributions are tax-deductible and thus offer a double advantage: pension provision and tax savings.

---

Requirements by Provider Type

Not every childcare provider needs the same insurance. Requirements depend on your legal form, the number of children cared for and your employment status.

Daycare

Daycares are typically organised as a GmbH, association or cooperative and employ several staff members. The requirements are the most extensive:

• Business liability: Mandatory in most cantons for the licence
• AIA: Mandatory for all employees
• LPP: Mandatory for employees above the entry threshold
• DSA: Strongly recommended (often required by collective labour agreements)
• Property insurance: Strongly recommended for own inventory
• Legal protection: Recommended

Childminder

Childminders often work independently or through a childminder organisation. More on this in the guide Becoming a Childminder.

• Professional liability: Required by most childminder organisations; often insured through the organisation
• AIA: Voluntary if self-employed; mandatory if employed
• LPP: Only if employed above the entry threshold
• DSA: Strongly recommended for the self-employed
• Property insurance: Recommended for professionally used equipment

Playgroup

Playgroups care for children on an hourly basis and are subject to varying supervisory requirements depending on the canton.

• Business liability: Strongly recommended, often a prerequisite for cantonal subsidies
• AIA: Mandatory if employees are present
• LPP: Depending on employment and wage bill
• Property insurance: Recommended for own premises

Nanny

Nannies are typically employed by a family. The insurance obligation lies primarily with the employing family.

• Professional liability: Recommended; a prerequisite on some placement platforms
• AIA: Mandatory — the family as employer must register the nanny
• LPP: Mandatory if the entry threshold is exceeded
• DSA: Recommended

Special Case: Childcare by Au Pairs

Au pairs are sometimes used for childcare. Special rules apply here: au pairs in Switzerland are classified as employees and must be registered for AIA and, where applicable, LPP accordingly. The host family is responsible as the employer. In addition, special working time regulations apply under the standard employment contract for domestic work.

---

Cost Overview: Insurance at a Glance

Insurance	Daycare (5–10 staff)	Childminder	Playgroup	Nanny
Professional liability	CHF 800–2,500/year	CHF 300–600/year	CHF 400–800/year	CHF 300–500/year
AIA (OA + NOA)	2–4% wage bill	voluntary, approx. CHF 300–600	2–4% wage bill	2–4% of salary
Property insurance	CHF 500–1,500/year	CHF 150–400/year	CHF 200–600/year	—
Legal protection	CHF 500–1,200/year	CHF 300–600/year	CHF 400–800/year	CHF 300–500/year
DSA	1–3% wage bill	CHF 300–800/year	1–3% wage bill	1–3% of salary
LPP	3.5–9% coord. salary	voluntary	depending on employment	3.5–9% coord. salary

All figures are indicative. Actual premiums depend on the insurer, coverage, location and individual risk profile.

---

Common Mistakes You Should Avoid

1. Not Taking Out Professional Liability Insurance

The biggest and most common mistake. Many care providers rely on their private liability insurance. However, this typically does not cover professional activities. Check your policy carefully and take out separate professional liability insurance if needed.

2. Underinsurance

A coverage amount that is too low is almost as bad as no insurance. In the case of personal injury — especially with children — claims can quickly run into the millions. Choose coverage of at least CHF 5 million.

3. Ignoring AIA Obligations

As an employer, you are subject to AIA obligations from the first employee. If you fail to register, you are personally liable for all accident costs — and Suva can claim premiums retroactively.

4. Forgetting the LPP Affiliation

Anyone who employs staff above the entry threshold and has no LPP affiliation is committing an offence. The LPP Substitute Occupational Benefit Institution can retroactively claim contributions with interest and costs.

5. Mixing Private and Business Insurance

Childminders who provide care at home in particular often confuse private and business insurance coverage. Clarify with your insurer whether your private insurance covers professional use — this is usually not the case.

6. No Regular Review

Your childcare offering evolves: you hire new employees, expand places or acquire new materials. Adjust your insurance annually to avoid coverage gaps.

7. Not Documenting Insurance Proof

For licensing and during audits, you must be able to present your insurance policies. Keep all documents up to date and readily accessible.

8. Taking Out Insurance Too Late

Many founders only deal with insurance when operations are already running. This is risky: from the very first day you care for children, liability risks exist. Take out all necessary insurance before starting operations. Also bear in mind that the licensing authority often requires proof of insurance during the licensing process.

9. Coverage Gaps During Outings and Transport

If you take children on outings or transport them by car, check whether your liability and accident insurance also covers these situations. For transporting children in a private vehicle, separate passenger insurance is recommended. Public transport also carries risks — ensure that your insurance coverage also applies outside your care premises.

---

Checklist: Mandatory and Recommended Insurance

Mandatory Insurance (legally required)

• AIA (Accident Insurance): Mandatory for all employees
• LPP (Pension Fund): For employees with an annual salary over CHF 22,680
• AHV/IV/EO/ALV: Social insurance contributions for all employees (not an insurance contract, but a mandatory levy)
• Family allowances (FamZG): Employers must join a family compensation fund

Strongly Recommended (practically essential)

• Professional liability insurance: A must for every provider type
• Daily sickness allowance insurance (DSA): Protects against income loss
• Property insurance: For all with their own equipment and premises

Recommended (depending on the situation)

• Legal protection insurance: Especially for larger operations and rental agreements
• Business interruption insurance: Covers loss of income during business standstill (e.g. after water damage)
• Cyber insurance: When using digital parent communication and management software
• Motor vehicle insurance: If a business vehicle is used for outings

---

Tips for Choosing the Right Insurance

1. Compare quotes: Obtain at least three quotes from different insurers. Pay attention not only to the price but also to the scope of coverage and exclusions.
2. Check industry solutions: Associations such as kibesuisse or the Swiss Childcare Association offer collective insurance at reduced rates in some cases.
3. Use advice: An insurance broker with experience in the childcare sector can advise you independently and put together the best solution.
4. Review policies regularly: Check your insurance at least once a year — especially when something changes in your operation.
5. Store all policies centrally: Keep an insurance file with all contracts, contact details and claims forms.

---

Conclusion

The right insurance solution is a central building block for every childcare provider in Switzerland. It protects you, your employees and the children in your care from financial risks. While some insurances such as AIA and LPP are legally required, professional liability insurance is practically indispensable for everyone in childcare.

Take the time to carefully build up your insurance concept, review it regularly and adjust it when things change. This way you can fully concentrate on what really matters: loving and safe care for the children.

Further helpful guides for your entry into childcare:

• Starting a Daycare in Switzerland
• Becoming a Childminder
• Choosing the Right Legal Form
• Licensing Requirements in Childcare

Sources: AIA, LPP, CO, SECO, kibesuisse, SVA. Last updated: February 2026.