What is Liability Insurance?
Liability insurance is a type of insurance that provides protection against the financial consequences of damages caused to third parties due to the insured’s mistakes or negligence. This insurance can cover injuries, property damage, or other losses resulting from accidents or wrongful actions. For example, if a business causes harm to its customers or visitors, liability insurance would cover the compensation payments.
In Turkey, liability insurance can be applied in various fields and situations. Businesses often opt for this type of insurance to protect themselves against risks they may encounter during their operations. This is particularly critical in situations where customer safety is essential, or where the delivery of products or services involves risk.
This type of insurance provides coverage within the limits determined based on the extent and nature of the damage. The insurance policy specifies the types of risks covered, the premium to be paid by the insured, the policy limits, and any exclusions. For instance, intentional actions are generally excluded from liability insurance coverage.
Liability insurance is also important for professional activities. Professional liability insurance covers damages that professionals such as doctors, lawyers, and engineers may cause to third parties while performing their duties. This includes damages that may occur due to the incorrect or incomplete provision of professional services.
In Turkey, certain liability insurances have been made mandatory. For example, professional liability insurance is required for certain professional groups. This protects both individuals and businesses from potential financial losses and helps maintain professional standards.
Liability insurance can be structured to cover both material and immaterial damages. This may include covering legal fees and court costs in legal proceedings faced by the insured. While protecting the insured from a financial burden, the insurance also provides fair compensation to the third parties affected.