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Professional Liability Insurance
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Att. Begum Taner Hunturk
Introduction
Professional Liability Insurance (“PLI”) is a form of liability
insurance designed for compensating damages, which may be caused
to third parties as a result of professional errors or omissions during the
conduct of the vocation of attorneys, accountants, financial consul-
tants, pharmacists, doctors, engineers, etc. In practice, this form of
insurance is usually implemented in certain kind of professional prac-
tice, where there is a membership of professional groups such as cham-
bers, unions, or associations. PLI is envisaged to be obligatory within
the scope of developing EU legislation. The Communiqué Regarding
the General Clauses of Professional Liability Insurance (“Communi-
qué”), which is published in the Official Gazette dated March 16, 2006
and numbered 26110, is effective in Turkey.
PLI is among the liability insurances implemented within our
country.
The Scope of PLI
In general, people who are working in the field of services are the
insured parties within the coverage of PLI. The insurer guarantees the
compensation claims of insured parties’ clients arising out of any
potential damage caused by the insured party. In other words, the
insurer shall remedy the third parties’ injury that may occur as a result
of material and physical damage arising out of the professional con-
duct of the insured party. The following claims for damages, occurring
during the professional activity limited by the PLI, shall be covered.
• Damages born during the term of the agreement-insurance pol-
icy- and which can be claimed during the term of the agreement
or afterwards,
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NEWSLETTER 2012
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Article of January 2012