Public / General Third Party Liability:
Protect Your Business Operations

What is Public / General Third Party Liability Insurance?

Public liability (also called general third party liability or commercial general liability) insurance covers the legal liability of a business for bodily injury or property damage caused to third parties who are not its employees, arising from its premises or business operations. Covered costs include compensation awards, claimants' costs, and the insured's own legal defence expenses — even when a claim is ultimately found to be unfounded.

This policy responds to scenarios as varied as a customer slipping on a wet floor in your shop, debris falling from your construction site onto a neighbouring vehicle, your cleaning crew accidentally damaging a client's office equipment, or a visitor sustaining an injury at an event you organise.

How it Differs from Related Liability Policies

vs. Motor Third Party Liability (Traffic Insurance)

Motor TPL is a mandatory statutory product covering liability from the operation of a specific vehicle on public roads and publicly accessible areas (KTK Article 2). It does not respond when a vehicle is operated exclusively in a private, non-public location (a private depot, enclosed site yard, or non-public facility), or when the incident has nothing to do with a vehicle. Public liability covers the broad range of non-motor business risks that inevitably arise in any commercial operation.

vs. Employers' Liability Insurance

Employers' liability covers the insured's legal liability to its own employees for work accidents and occupational diseases, including recourse claims brought by the Social Security Institution (SGK). Public liability covers liability to third parties who are not employees — customers, visitors, neighbours and independent subcontractors. The two policies are complementary and together form the foundation of a complete liability programme.

vs. Product Liability Insurance

Product liability covers harm caused by a product after it has left the insured's control — once it has been sold and delivered to a buyer or end user. Public (general) liability focuses on harm caused during ongoing operations, while the insured retains direct control. Manufacturers and distributors need both to avoid a gap between the two coverage grants.

Scope of Cover and Legal Framework

Turkish Legal Liability Basis

The Turkish Code of Obligations (Türk Borçlar Kanunu — TBK) establishes a broad tort liability regime based on fault (TBK Art. 49) and causation. Articles 55–56 govern recoverable heads of damages for bodily injury and death, including loss of earnings, pain and suffering, and support claims by dependants. Courts consistently apply a high duty of care to operators of publicly accessible premises and businesses providing services to the public. As a result, any commercial operation that interacts with third parties carries an inherent general liability exposure.

What is Covered

• Bodily injury — injury or death of a third party caused by your operations or premises
• Third-party property damage — damage to moveable or immoveable property belonging to third parties
• Legal defence costs — attorneys' fees, expert witnesses and court costs, including defence of unfounded claims
• Premises liability — accidents and infrastructure failures within the insured's premises
• Operations liability — harm caused away from the insured's own premises during the course of business activities

Common Exclusions

• Deliberate or wilful acts
• Contractual liability beyond standard legal liability (assumed by agreement)
• Bodily injury to the insured's own employees (requires an employers' liability policy)
• Product and post-completion liability (requires a product liability policy)
• Liability arising from the operation of motor vehicles (covered by motor TPL)
• Pollution and environmental liability (available as a separate endorsement or standalone policy)
• Fines, penalties and punitive damages imposed by regulatory or criminal courts

Which Sectors Should Prioritise This Policy?

Businesses with significant third-party exposure should treat public liability as a primary-priority policy:

• Retail and shopping centres — high customer traffic, slip-and-fall exposure
• Hotels, restaurants and entertainment venues — guest density, food-related risks
• Construction and contracting firms — neighbouring property damage, public safety
• Sports facilities and events venues — inherently high injury-risk environments
• Facility services — cleaning, security and maintenance firms working at clients' sites
• Organised industrial zones and factories — visitor and subcontractor liability
• Healthcare facilities — patient and visitor safety obligations
• Logistics operators and warehouses — loading operations, forklift and vehicle interaction

Some commercial contracts and municipal operating licences specify a minimum liability limit as a contractual precondition. Your broker can identify and satisfy these requirements.

Underwriting Requirements and Premium Factors

Underwriters typically require the following information to assess a public liability risk:

• Nature and scope of business activities — what services are provided and at which locations
• Annual turnover or payroll — the primary premium rating base
• Degree of public access — daily visitor count, type of clientele
• Premises size and location — floor area (m²), number of floors, access arrangements
• Use of subcontractors — for contracting businesses: whether subcontractors are controlled or independent
• Loss history — third-party liability claims over the past 3–5 years
• Required indemnity limit and deductible

Frequently Asked Questions

Consider These Alongside

• Employers' Liability Insurance — liability to your workforce
• Product Liability & Recall Insurance — post-delivery product risk
• SME Commercial Package Insurance — modular premises cover including BI
• Property & Fire Insurance — material damage protection
• All Insurance Solutions →