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Employers' Liability — EL Insurance

Employers' Liability Insurance:
Managing Workplace Injury Risk

We analyse employers' liability risks for Turkish and international businesses — including SGK recourse exposure, long-tail occupational disease claims, and competitive market placement.

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SGK and EL — Key Difference

Social Security (SGK) vs. Employers' Liability Insurance

Critical Distinction

In Turkey, SGK (Social Security Institution) pays statutory work injury benefits to the injured worker. However, where the employer's negligence or fault contributed to the accident, SGK may bring a recourse claim against the employer to recover those payments. Separately, the employee (or their heirs) may bring a civil damages claim directly against the employer. Employers' Liability Insurance addresses both types of claim — it supplements, not replaces, statutory SGK contributions. SGK recourse is conditioned on a finding of employer fault — the insurer analyses fault allocation in each claim.

Bodily Injury Damages

Compensation awards in civil claims brought by injured workers or their heirs.

SGK Recourse Claims

SGK seeking to recover statutory benefit payments from the employer where negligence is established.

Occupational Disease

Long-tail liability claims arising from cumulative occupational exposure — hearing loss, lung disease, RSI.

Legal Defence Costs

Legal, expert witness and court costs — even a successfully defended claim generates defence expenditure.

Policy Design

Claims-Made vs. Occurrence — Which Matters?

Occupational disease and cumulative injury claims — such as noise-induced hearing loss or repetitive strain — may not manifest until years after the exposure period. The claims-made vs. occurrence-based policy structure and the retroactive date are therefore critical design choices for employers in high-risk sectors.

  • Occurrence-based: Cover triggers on the policy in force when the injury occurred — even if the claim is made years later
  • Claims-made: Cover triggers on the policy in force when the claim is first made — retroactive date limits how far back injuries are covered
Important: For occupational disease exposures with long latency periods, an occurrence-based wording or a carefully selected retroactive date is essential. Gaps in cover can leave an employer exposed to claims for past exposures with no insurance response.
Key Exclusions

What Standard EL Policies Do Not Cover

  • Intentional acts or deliberate harm
  • Liability assumed under contract beyond standard legal liability
  • Wrongful dismissal and employment practices (Employment Practices Liability — EPL is a separate cover)
  • Workplace harassment and discrimination claims (EPL)
  • Regulatory fines and administrative penalties

Frequently Asked Questions

Does employers' liability insurance replace SGK contributions?
No. SGK pays statutory benefits to the injured worker. Employers' liability insurance covers the employer's legal liability to the worker and SGK recourse claims — it supplements SGK, not replaces it.
Which sectors should prioritise EL cover?
Construction, shipbuilding, mining, energy, transport, manufacturing and any employer with a large workforce. In principle, all employers face legal liability risk — sector only affects the severity profile.
Does the employee's own negligence remove the employer's liability?
Under Turkish law (İş Kanunu and related case law), the employer's liability for work accidents is subject to fault-based assessment, though courts apply a relatively broad duty of care. The employee's own contributory negligence (müterafik kusur) is assessed separately and may proportionally reduce — but rarely eliminates — the employer's share of liability. SGK recourse claims follow the same fault allocation.
Why does claims-made vs. occurrence matter?
Occupational diseases and cumulative injuries may surface years after exposure. Occurrence-based cover or a sufficiently early retroactive date ensures no coverage gap for historical exposures.
Are harassment and wrongful dismissal claims covered?
Standard EL policies do not cover these — they are addressed by Employment Practices Liability (EPL) policies, which should be considered separately.

Related Glossary Terms

Employers' Liability Liability cover for work injuries and occupational diseases caused by employer negligence. Occupational Disease Work-related illness arising over time from cumulative exposure — a long-tail liability risk. Claims-Made Policy Cover triggers when the claim is first made, not when the injury occurred — retroactive date is key.

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