Employer’s Liability Insurance protects an employer’s responsibilities towards their employees. In the event of a workplace accident or occupational disease, it can cover compensation claims that the Social Security Institution (SSI) may seek to recover from the employer, as well as legal expenses. This protection shields the employer from sudden and substantial financial burdens.
Third-Party Liability Insurance, on the other hand, covers bodily injury or property damage that the business may cause to third parties (such as customers or visitors) during its operations. It provides financial protection against compensation claims originating from external parties.
A type of insurance that provides coverage for an employer’s legal liabilities towards employees in the workplace.
This insurance covers:
Compensation payable by the employer due to workplace accidents or occupational diseases
Court expenses
Attorney fees
The following situations are covered:
Permanent disability pension paid to the employee by the Social Security Institution (SSI)
Survivor’s pension in the event of death
Temporary disability allowances
Amounts recourseable to the employer in proportion to their fault
Coverage applies only to the workplace specified in the policy.
Every workplace accident can impose a financial burden on the employer.
There is a risk that SSI payments may be reclaimed from the employer.
Legal compensation claims can reach substantial amounts.
Not mandatory, but minimizes the employer’s exposure to risk.
| Feature | Employer’s Liability | Third-Party Liability |
|---|---|---|
| Liability Towards | Employees | Customers, visitors, etc. |
| Type of Damage | Workplace accident, occupational disease | Bodily injury / property damage |
| Coverage Scope | Only incidents occurring at the workplace | At the workplace or during business activities |
| Legal Basis | Social Security and General Health Insurance Law No. 5510 | Turkish Code of Obligations / Turkish Commercial Code |
