What Is Employer's Liability Insurance for Workplace Accidents in Turkey?

Following a workplace accident, an employee's or their relatives' rights can be affected not only by the Social Security Institution (SGK) but also by employer's liability insurance — a private insurance policy the employer takes out voluntarily.

The Difference From SGK

An employee who suffers a workplace accident receives statutory entitlements from the SGK, such as temporary incapacity benefit and permanent incapacity income; however, these payments generally do not cover the full extent of the loss. The portion of material and moral damages arising from the employer's fault and not covered by the SGK must otherwise be recovered from the employer's personal assets — this is exactly where employer's liability insurance comes in.

The Scope of Employer's Liability Insurance

An employer's liability insurance policy secures, up to the policy limits, the compensation amounts the employer would otherwise have to pay to the employee or their relatives following a workplace accident or occupational disease, to the extent not covered by the SGK. This insurance is not mandatory; it is taken out at the employer's discretion.

Conditions for the Policy to Apply

For the policy to be triggered, the accident must qualify as a workplace accident, the employer must be at fault, and the loss must exceed the portion covered by the SGK. Exclusions in the policy (for example, some policies treat the employer's gross negligence or intent differently) should be carefully reviewed in the specific case.

Can the Employee Apply Directly to the Insurer?

The injured employee or their relatives can apply directly to the insurance company for compensation covered by the policy; this is an option that should be considered before pursuing the employer's personal assets. If the insurer refuses payment, an application to the Insurance Arbitration Commission or a lawsuit can follow.

Practical Recommendations

If you suffer a workplace accident, try to find out whether the employer holds such insurance (and, if so, the policy number and insurer) — this information clarifies which sources your compensation claim can be recovered from. Because the compensation calculation and policy coverage are technical matters, it is advisable to handle the process together with a lawyer.

This article is for informational purposes only and does not constitute legal advice. Please contact our team regarding your specific situation.