Business interruption insurance claim denied in Turkey? Learn what accounting records, turnover data, contracts, invoices, payroll records and expert reports can prove lost profits and challenge the insurer.

A business interruption insurance claim can be rejected even when the underlying fire, flood, explosion or other insured event caused an obvious shutdown. In many disputes, the insurer does not seriously contest that the business stopped operating; instead, it argues that the policyholder has failed to prove how much financial loss was actually caused by the interruption. This distinction is critical. A company cannot usually prove a multimillion-lira business interruption claim merely by showing that its premises were damaged or that revenue decreased after the event. The business must connect the insured physical damage to the interruption and then demonstrate, through reliable financial and commercial evidence, what its turnover and insured gross profit would probably have been if the loss had never occurred. Under Turkey’s fire-related loss-of-profit insurance framework, the standard calculation focuses on reduced turnover and qualifying increases in operating costs, less operating expenses saved because of the interruption. Standard turnover and gross-profit calculations can also be adjusted to reflect changes in the development of the business and other circumstances that would have affected operations even if the insured event had not occurred. (Türkiye Sigorta Birliği)

Why Are Business Interruption Claims Denied?

Business interruption claims may be rejected because the underlying physical damage was not covered, the policy did not include the relevant interruption risk, the claimant allegedly failed to establish causation, the claimed loss extends beyond the maximum indemnity period, the insurer disputes the turnover calculation or the documentation is considered insufficient. The rejection letter should therefore be examined before deciding what additional evidence is required.

The First Question: Was There Covered Physical Damage?

Under the standard Turkish fire-related loss-of-profit framework, the interruption claim generally depends on qualifying physical damage to property used in the business, such as the building, machinery, equipment, fixtures or inventory, resulting from a risk covered under the relevant property insurance arrangement. The related property insurer must also have compensated the physical damage or accepted responsibility within the applicable framework. (Türkiye Sigorta Birliği)

A Shutdown Alone Does Not Automatically Prove an Insured Loss

A factory may close for four months after a fire, but that fact alone does not establish the amount of compensation. The business must prove what economic performance would probably have occurred without the fire and compare it with what actually happened during the interruption.

What Must the Business Ultimately Prove?

A substantial business interruption claim normally requires evidence addressing several interconnected questions: what caused the interruption, when it began, how long it reasonably continued, what turnover would probably have been generated, what turnover was actually generated, what gross-profit rate applies, which expenses were saved and what additional expenses were reasonably incurred to reduce the loss.

Accounting Records Are Fundamental Evidence

Accounting books and records are among the most important forms of evidence. The applicable general conditions specifically contemplate the insured providing accounting books and records, receipts, invoices, balance sheets and other information and evidence required to investigate the compensation claim. (Türkiye Sigorta Birliği)

Financial Statements Can Establish Historical Performance

Income statements, balance sheets and other financial statements can demonstrate the company’s historical turnover, cost structure and profitability. Several years of records may provide a much stronger picture than a single financial year.

Monthly Management Accounts Can Be Even More Valuable

Annual accounts can conceal important changes occurring immediately before the insured event. Monthly management accounts may demonstrate that turnover was accelerating, margins were improving or a particular season was approaching.

Why Monthly Turnover Matters

Suppose a hotel earns 60% of its annual revenue during four summer months. An insurer that divides annual turnover evenly across twelve months may substantially underestimate the loss from a closure during peak season. Monthly turnover records can expose that error.

VAT and Tax-Related Records Can Support Turnover Evidence

Tax-related records can help corroborate sales figures appearing in internal accounting systems. However, the standard business interruption calculations under the applicable general conditions exclude VAT, so financial information should be adjusted consistently with the policy methodology. (Türkiye Sigorta Birliği)

Bank Statements Can Corroborate Revenue

Bank records can demonstrate incoming customer payments and historical cash flows. They may be particularly useful where the insurer questions whether turnover appearing in internal records reflects genuine commercial transactions.

Bank Statements Should Not Be Used Alone

Money entering a bank account is not necessarily turnover. It may include shareholder loans, financing, intercompany transfers or other non-sales receipts. Bank records should therefore be reconciled with accounting and sales data.

Sales Ledgers Are Powerful Evidence

Detailed sales ledgers can show which customers purchased products or services, transaction dates and historical volumes. This can help establish recurring customer behavior before the insured event.

ERP Records Can Reconstruct the Business

For manufacturing, distribution and logistics businesses, ERP systems can contain some of the strongest evidence available. They may demonstrate orders, production, inventory, invoicing, customer histories and supply-chain activity.

Point-of-Sale Data Can Help Retail Businesses

Retailers may use POS records to establish daily or hourly sales trends. These records can be particularly useful for proving seasonality or demonstrating the immediate decline following an insured event.

Hotel Reservation Systems Can Prove Lost Business

Hotels should preserve booking systems showing confirmed reservations, occupancy rates, average room rates, cancellations and historical booking patterns. This evidence can provide a much stronger basis for calculating expected revenue than broad annual figures.

Restaurant Reservation and Sales Systems May Also Help

Restaurants can preserve POS records, reservations, delivery-platform records and historical daily sales. A restaurant closed during an important tourism period may therefore be able to demonstrate the specific commercial effect of the interruption.

Customer Contracts Can Be Critical

Signed customer agreements existing before the insured event can provide compelling evidence of future revenue. If a manufacturer had a binding contract to supply TRY 20 million of goods during the interruption period, that contract may materially strengthen the expected-turnover calculation.

Purchase Orders Can Prove Expected Sales

Confirmed purchase orders existing before the incident may demonstrate revenue that was reasonably expected. The insurer may still examine whether the orders would actually have been fulfilled, but contemporaneous orders can be considerably stronger than forecasts created after the loss.

Preserve Cancelled Orders

A customer cancellation stating that an order cannot proceed because the insured factory cannot manufacture the product can help establish causation between the physical loss and the financial consequence.

Customer Emails Can Provide Supporting Evidence

Emails explaining cancelled orders, delayed deliveries or customer migration to competitors can support the commercial narrative. They should generally complement financial records rather than replace them.

Framework Agreements Can Demonstrate Recurring Business

Some businesses operate through long-term supply agreements rather than individual fixed orders. Historical performance under those agreements can help estimate the turnover that probably would have been generated.

Evidence Created Before the Loss Is Particularly Valuable

Documents created before the insured event generally carry greater evidentiary weight because they were not prepared for the purpose of increasing an insurance claim. Pre-loss budgets, board presentations, forecasts and customer contracts can therefore be extremely important.

Pre-Loss Budgets Can Support Growth Claims

Suppose a company historically generated TRY 100 million annually but had budgeted TRY 140 million for the following year before the fire. The budget alone does not prove that TRY 140 million would have been achieved, but it can become persuasive when supported by contracts, production capacity and actual pre-loss growth.

Board-Approved Financial Forecasts Can Be Useful

Forecasts formally approved before the loss can help demonstrate management’s genuine expectations. The insurer may challenge the assumptions, so the underlying commercial basis should also be preserved.

Historical Growth Rates Can Support the Counterfactual

A business growing consistently by 20% annually should not necessarily be treated as though future turnover would have remained flat. Historical trends can support an adjustment to the standard-turnover calculation.

Turkish Rules Allow Relevant Adjustments

The standard framework expressly allows adjustments to gross-profit rate, annual turnover and standard turnover to reflect changes in the development of the business and other circumstances affecting operations before or after the loss, including factors that would have affected the business even without the insured event. The aim is to reach figures as close as possible to what would have been achieved had the damage not occurred. (Türkiye Sigorta Birliği)

Evidence of Expansion Can Be Extremely Important

A business may have opened another production line, increased warehouse capacity, hired additional staff or purchased new machinery shortly before the incident. These investments may demonstrate that historical turnover understates expected future performance.

New Machinery Can Prove Increased Capacity

Invoices, commissioning reports and production tests concerning newly installed machinery can demonstrate that the company had increased production capacity before the insured event.

New Employees Can Support Expansion Evidence

Payroll records showing substantial recruitment before the loss can support an argument that the business was expanding. However, the claimant should explain how the additional employees were connected to increased production or sales.

New Locations Can Affect the Calculation

A company that opened new branches shortly before the loss may reasonably have expected higher turnover. Lease agreements, opening records and initial sales performance can help demonstrate the effect.

Marketing Campaigns Can Support Growth but Need Corroboration

Evidence of a major advertising campaign may support expected growth, but projections based solely on anticipated marketing success can be speculative. Actual customer orders, website sales or historical conversion data can make the evidence stronger.

Evidence of Decline Must Also Be Addressed

A credible claim should not ignore unfavorable information. If the company was losing customers before the insured event, the insurer may legitimately argue that turnover would have declined even without the loss.

External Economic Conditions Can Affect the Calculation

Industry downturns, regulatory changes, commodity shortages or major market developments can influence expected turnover independently of the insured event. A sound financial model should distinguish those effects from losses caused by the interruption.

The Central Question Is the “But-For” Scenario

The economic question is essentially: What would this business probably have earned during the indemnity period if the insured event had not happened? Evidence should be organized around answering that question.

Historical Turnover Is the Starting Point

Under the standard framework, standard turnover generally concerns turnover in the corresponding period within the twelve months immediately preceding the loss, subject to the relevant adjustments. (Türkiye Sigorta Birliği)

Example: Factory Claim

A factory suffers an insured fire in April 2026 and remains partially closed through September. Its turnover for the comparable previous period was TRY 60 million. However, the company had increased production capacity by 30% before the fire and had confirmed orders supporting the expansion. Those records may support an adjusted expected-turnover figure higher than TRY 60 million.

Actual Turnover Must Also Be Proven

The claimant cannot focus only on what it expected to earn. It must establish what it actually earned during the interruption. The difference between standard or adjusted expected turnover and actual turnover is central to the calculation. (Türkiye Sigorta Birliği)

Revenue From Temporary Operations Cannot Be Ignored

A factory may outsource production. A retailer may operate from another location. A hotel may keep part of its rooms open. Revenue generated through those operations must be accounted for rather than claiming that the entire expected turnover disappeared.

Alternative Location Records Are Important

The applicable general conditions provide that income generated where the insured continues its activity at a different workplace, or where the activity is continued by others on its behalf, is considered when calculating turnover during the indemnity period. (Türkiye Sigorta Birliği)

Gross-Profit Evidence Is Essential

Reduced turnover alone does not establish the insurance payment. The claimant must also establish the applicable gross-profit rate according to the policy.

What Evidence Proves the Gross-Profit Rate?

Historical financial statements, management accounts, cost accounting records, sales data, stock records and the policy’s defined operating expenses can all be relevant. The standard general conditions define the gross-profit rate by reference to gross profit relative to turnover in the relevant pre-loss financial period unless the policy provides otherwise. (Türkiye Sigorta Birliği)

Stock Records Can Affect Gross Profit

Opening and closing inventory may be relevant to the contractual gross-profit calculation. Warehouses and manufacturers should therefore preserve stock records even where the physical property claim has already been settled.

Cost Accounting Can Become Critical for Manufacturers

Manufacturing businesses often have complex fixed and variable expenses. Detailed cost accounting can help distinguish costs that continued during the interruption from costs genuinely saved.

Saved Expenses Must Be Proven Correctly

The standard calculation deducts qualifying operating expenses that would have been paid from gross profit but were not paid or were saved because of the loss. (Türkiye Sigorta Birliği) An insurer that overstates saved expenses can materially reduce compensation.

Payroll Records Can Be Decisive

Suppose the insurer assumes that the company saved TRY 8 million of payroll because production stopped. If payroll records show that employees remained employed and TRY 7 million was actually paid, the insurer’s calculation may substantially overstate the saving.

Rent Records Can Show Continuing Expenses

A tenant may continue paying rent despite being unable to operate from the damaged premises. Lease agreements and payment records can establish whether rent actually continued.

Utility Bills Can Demonstrate Genuine Savings

Electricity, natural gas and production-related utility costs may decline during closure. Comparing pre-loss and post-loss bills can help quantify actual savings instead of relying on assumptions.

Supplier Invoices Can Help Separate Variable Costs

If raw-material purchases fell dramatically because production stopped, accounting records can identify the expenses genuinely avoided because of the interruption.

Increased Cost of Working Requires Separate Evidence

Businesses frequently spend additional money to reduce their financial loss. The standard framework recognizes necessary and acceptable increases in operating costs incurred to prevent turnover reduction, subject to the applicable limitations. (Türkiye Sigorta Birliği)

Temporary Premises Should Be Documented

If a company rents another warehouse or office, it should preserve the temporary lease, invoices, payments and evidence demonstrating how the alternative premises allowed operations to continue.

Outsourcing Costs Should Be Documented

A manufacturer that outsources production should preserve subcontractor agreements, invoices, transportation expenses and records showing the customer orders preserved by outsourcing.

Emergency Equipment Rental Can Support the Claim

Renting generators, machinery, servers or other equipment may allow the business to continue operating. Rental invoices should be linked to the turnover that the expenditure helped preserve.

Expedited Freight May Be Relevant

A company may pay significantly more to transport replacement machinery by air rather than sea. The business should document both the additional expense and how much earlier production resumed as a result.

Overtime Costs Can Also Be Relevant

After partial reopening, employees may work overtime to clear a production backlog. Payroll and production records can help demonstrate whether these expenses reduced the continuing interruption loss.

Mitigation Evidence Is Important for Another Reason

The insured is expected to take reasonable measures to prevent, reduce or mitigate the loss. The applicable general conditions address mitigation obligations and the associated expenses. (Türkiye Sigorta Birliği) A business should therefore document not only its losses but also what management did to minimize them.

Management Meeting Minutes Can Be Valuable

Board or management minutes can demonstrate why particular recovery decisions were taken. They may explain why outsourcing was selected, why temporary premises were rented or why a particular replacement machine was ordered.

Create a Recovery Timeline

A detailed chronology should show the date of damage, shutdown, inspections, repair decisions, equipment orders, temporary operations, partial reopening and return to normal activity.

Why the Timeline Matters

The insurer may accept that the first two months of interruption were caused by the insured event but argue that subsequent delays resulted from poor management. A detailed recovery chronology can help demonstrate why the entire claimed period was reasonably attributable to the damage.

Contractor Records Can Prove Repair Duration

Construction schedules, repair contracts, progress reports and contractor correspondence can establish how long physical restoration genuinely required.

Machinery Lead-Time Evidence Can Be Critical

A specialized production line may require nine months to manufacture and install. Manufacturer correspondence confirming that lead time can rebut an insurer’s argument that operations should have resumed within three months.

Import Documentation Can Support Delay Evidence

Customs records, shipping documentation and delivery schedules can demonstrate why replacement equipment was unavailable earlier.

Regulatory Approvals Can Affect Reopening

Some businesses cannot reopen immediately after physical repairs because licenses, inspections or approvals are required. Records showing when applications were submitted and approvals obtained can help establish the reasonable recovery period.

The Maximum Indemnity Period Still Matters

Even strong evidence of continuing financial loss does not automatically extend insurance coverage beyond the maximum indemnity period stated in the policy. Under the standard framework, responsibility continues until the interruption is resolved but cannot exceed the contractual maximum period. (Türkiye Sigorta Birliği)

Evidence Should Separate Covered and Uncovered Periods

If the business suffers financial problems after the maximum indemnity period expires, those amounts should not simply be combined with the insured claim. A period-by-period analysis is generally stronger.

What If the Business Was Only Partially Closed?

Partial interruption can still create substantial loss. Production reports, utilization records, sales data and employee shift information can demonstrate reduced capacity.

Example: Factory Operating at 40% Capacity

A factory normally produces 10,000 units per month but can manufacture only 4,000 after an insured fire. Production records, customer orders and sales invoices can establish the impact of the 60% capacity reduction.

What If the Business Remained Open but Lost Customers?

A business does not necessarily need to have completely closed. If covered physical damage materially disrupted operations and reduced turnover, the financial consequences may potentially fall within applicable business interruption coverage.

Customer Loss Must Still Be Linked to the Event

If customers left because deliveries became impossible after the insured event, correspondence and cancelled orders may support causation. If customers left for unrelated reasons, those losses may not belong in the claim.

New Businesses Face Greater Evidentiary Challenges

A newly established business may not have twelve months of historical turnover. This does not necessarily make financial loss impossible to establish, but greater reliance may be placed on actual pre-loss performance, signed contracts, orders, capacity, budgets and other objective evidence.

Forecasts Alone Can Be Dangerous

A business plan predicting spectacular growth is weaker than signed orders and actual pre-loss growth. The strongest claims combine projections with contemporaneous commercial evidence.

What If the Business Had Never Made a Profit?

This does not automatically answer whether an interruption loss exists. The policy’s gross-profit definition and financial methodology must be applied. A company can potentially suffer an insured interruption loss even where ordinary accounting net profit was weak, depending on its turnover and insured cost structure.

Net Profit and Insured Gross Profit Are Different Concepts

A common insurer-policyholder disagreement arises because ordinary financial statements use accounting concepts that do not precisely match policy definitions. The financial expert should calculate the claim using the insurance contract rather than simply copying the company’s net-profit figure.

Independent Forensic Accounting Can Strengthen Large Claims

For substantial disputes, an independent accountant or financial expert can reconstruct expected turnover, actual turnover, gross-profit rates, saved expenses and increased operating costs.

The Expert Should Explain the Methodology

A report stating only that “the company lost TRY 25 million” is weak. A stronger report explains the data sources, assumptions, calculations and adjustments and allows every material figure to be verified.

Scenario Analysis Can Address Uncertainty

Where future performance is uncertain, an expert may evaluate conservative, base and higher-growth scenarios. The strongest conclusion should nevertheless be supported by the most objectively probable no-loss scenario rather than the most favorable hypothetical outcome.

Insurer Calculations Should Be Audited Line by Line

The insurer may reject a claim because its expert calculated little or no insured loss. The policyholder should compare every assumption used by the insurer against its own records.

Example: Incorrect Standard Turnover

The insurer uses TRY 50 million as standard turnover. The business demonstrates that the corresponding historical period generated TRY 50 million but documented expansion and confirmed contracts support an adjusted figure of TRY 70 million. The difference can materially alter the compensation calculation.

Example: Incorrect Gross-Profit Rate

The insurer applies a 20% gross-profit rate while the policy-compliant calculation supported by accounting records is 32%. On a TRY 30 million turnover reduction, that difference alone can change the initial turnover-related loss from TRY 6 million to TRY 9.6 million.

Example: Excessive Saved Expenses

The insurer deducts TRY 5 million in alleged payroll and rental savings. The business demonstrates through bank statements and payroll records that only TRY 1 million was actually saved. The disputed TRY 4 million can materially affect the final calculation.

Example: Ignored Increased Operating Costs

A manufacturer spends TRY 3 million outsourcing production and preserves substantial customer revenue. The insurer excludes the entire expense. The claimant should demonstrate why the expenditure was necessary, reasonable and connected to preventing a larger turnover reduction.

What If the Insurer Says the Documents Are Insufficient?

The business should request clarity about which financial assumptions remain unproven. A broad allegation of “insufficient documentation” should be converted into specific evidentiary questions.

Build an Evidence Index

For large claims, thousands of pages may be involved. Documents should be organized into categories such as policy and coverage, physical damage, historical turnover, expected turnover, actual turnover, gross profit, continuing expenses, saved expenses, mitigation costs and recovery timeline.

Create a Financial Loss Schedule

The claimant should prepare a clear schedule showing, month by month, expected turnover, actual turnover, turnover reduction, applicable gross-profit calculation, increased operating costs and saved expenses.

A Monthly Calculation Can Reveal the Real Loss

Suppose expected monthly turnover during a four-month interruption was TRY 10 million, TRY 12 million, TRY 15 million and TRY 18 million because of seasonality. A flat monthly average may materially distort the loss. A month-by-month model supported by historical evidence can be much stronger.

Reconcile Every Important Figure

Figures appearing in the claim should reconcile with accounting records wherever possible. If the claim says turnover was TRY 20 million but the company’s financial statements show TRY 25 million, the discrepancy should be explained before the insurer uses it to attack credibility.

Preserve Original Digital Records

ERP exports, accounting databases and sales records should be preserved in their original form where possible. Screenshots alone may be less persuasive than complete underlying data.

Preserve Correspondence With the Insurer

Every request for documents, response, expert inspection, calculation and rejection should be retained. The chronology can become important when challenging both the rejection and any delay in claim handling.

The Insurer Also Has an Assessment Timeline

The standard general conditions provide that, after receiving documentation concerning the amount of loss, the insurer should complete the necessary examination and determine and notify the damage and compensation amount within the specified 30-day framework. (Türkiye Sigorta Birliği)

Can a Denied Claim Be Reconsidered?

Yes. A rejection may be challenged by presenting additional financial, technical and contractual evidence. The objection should directly address the reasons given by the insurer rather than merely repeating the original demand.

How Should a Rejection Be Challenged?

A strong challenge generally begins with the policy and rejection grounds, establishes the covered physical damage, explains causation, reconstructs expected turnover, calculates actual turnover and gross-profit loss, documents mitigation expenses and answers every disputed deduction.

Can Insurance Arbitration Be Considered?

Depending on the insurer, policy and applicable procedural framework, insurance arbitration may be available for a rejected business interruption claim. High-value cases require careful preparation because the dispute can involve both insurance-law interpretation and complex financial evidence.

Can the Claim Be Taken to Court?

Where the applicable procedural requirements are satisfied, judicial remedies may also be available. Court proceedings can involve accounting, insurance and technical expert examinations.

Can Interest Be Claimed?

Potentially. If insurance compensation has become due but remains unpaid, applicable default-interest claims may arise. The claim notification, document-submission and rejection chronology should therefore be preserved carefully.

Do Not Sign a Settlement Without Reviewing the Financial Calculation

A business facing severe cash-flow pressure may be offered a payment substantially below its claimed loss. Before signing a release, the company should determine whether the payment resolves only an undisputed amount or extinguishes the entire business interruption claim.

Foreign-Owned Businesses Can Prove Financial Loss in the Same Way

Foreign ownership does not itself prevent a company operating in Turkey from pursuing a business interruption insurance claim. Foreign-owned factories, hotels, logistics companies, retailers and other businesses should preserve Turkish financial records together with any relevant group-level documentation.

International Group Records Can Be Relevant

A multinational business may have budgets, purchase orders or customer contracts maintained by its overseas parent company. Where those documents genuinely relate to the Turkish insured operation, they may support the financial analysis.

Intercompany Transactions Require Careful Treatment

Revenue and expenses involving related companies should be clearly identified. Insurers may scrutinize intercompany transactions to determine whether they reflect genuine commercial loss.

The Strongest Evidence Is Usually a Combination

No single document normally proves a complex business interruption claim. The strongest cases combine accounting records + historical turnover + contracts and orders + operational records + mitigation evidence + recovery timeline + independent financial analysis.

2026 Strategy for Proving a Denied Business Interruption Claim in Turkey

For a denied business interruption claim in Turkey in 2026, evidence should be organized around a clear counterfactual financial model. First, establish that qualifying insured physical damage occurred and caused the business interruption. Second, determine the contractual indemnity period and policy definitions. Third, establish historical standard turnover using reliable accounting records. Fourth, adjust that figure where objective evidence demonstrates growth, decline, seasonality or another factor that would have affected performance even without the loss. Fifth, establish actual turnover generated during the interruption, including income earned from alternative premises or outsourced operations. Sixth, determine the policy-compliant gross-profit rate. Seventh, document expenses genuinely saved during the shutdown. Eighth, separately prove reasonable increased operating costs incurred to mitigate the turnover reduction. Finally, reconcile the entire calculation with accounting, banking and commercial evidence and directly answer every reason stated in the insurer’s rejection. The practical evidence strategy is therefore: prove coverage → prove causation → prove historical performance → prove expected performance → prove actual turnover → prove gross-profit rate → prove continuing and saved expenses → prove mitigation costs → prove interruption duration → quantify the final insured loss → challenge the rejection with a fully documented financial model.

Frequently Asked Questions

1. What is the most important evidence for a denied business interruption claim?

Accounting records, historical turnover data, customer contracts, sales records and evidence establishing the actual duration and cause of the interruption are usually central. Strong claims normally rely on several types of evidence together.

2. Are financial statements alone enough to prove lost profits?

Not always. Financial statements are important, but monthly sales data, contracts, purchase orders, ERP records, budgets and operational evidence may be necessary to establish what would probably have happened without the insured event.

3. Can customer contracts prove future turnover?

Yes. Contracts and confirmed purchase orders existing before the loss can provide strong evidence of expected revenue, particularly when supported by historical customer performance.

4. Can a growing business claim more than the previous year’s turnover suggests?

Potentially, yes. The standard framework allows relevant adjustments where objective evidence demonstrates changes in the development of the business or other circumstances affecting expected performance. (Türkiye Sigorta Birliği)

5. Can payroll records help prove the claim?

Yes. Payroll records can demonstrate continuing expenses and challenge an insurer’s allegation that substantial employee costs were saved during the interruption.

6. Can temporary premises and outsourcing expenses be used as evidence?

Yes. Where those expenditures were reasonably incurred to prevent a greater reduction in turnover and satisfy the policy requirements, they may be relevant to the business interruption calculation.

7. What if the company has less than one year of trading history?

The loss may still potentially be established using actual pre-loss performance, signed contracts, confirmed orders, budgets, capacity evidence and other objective commercial information.

8. Can the insurer’s financial expert calculation be challenged?

Yes. The claimant can challenge assumptions concerning standard turnover, business growth, gross-profit rates, saved expenses, mitigation costs and interruption duration with independent financial evidence.

9. Should alternative revenue earned during the shutdown be disclosed?

Yes. Revenue generated through alternative premises or operations conducted on behalf of the insured is relevant to the turnover calculation under the standard framework. (Türkiye Sigorta Birliği)

10. Can a foreign-owned company pursue a denied business interruption claim in Turkey?

Yes. Foreign ownership does not itself prevent a company from pursuing compensation under an applicable Turkish business interruption insurance policy.

Legal Support for Denied Business Interruption Insurance Claims in Turkey

A denied business interruption claim can involve substantial disputes concerning expected turnover, actual turnover, gross-profit rates, customer contracts, seasonality, saved expenses, mitigation costs and the duration of the interruption. In major commercial claims, these disagreements can change the compensation amount by millions of Turkish lira.

Fırat Fesih Kaya Law Office provides legal assistance to Turkish and foreign-owned businesses concerning denied and underpaid business interruption insurance claims, disputed lost-profit calculations, insurer expert reports and insurance arbitration or litigation.

Fırat Fesih Kaya can assess the insurance policy and rejection grounds, coordinate the evaluation of accounting and commercial evidence, identify weaknesses in the insurer’s financial calculation and pursue outstanding business interruption compensation through the appropriate legal procedure.

Phone: +90 312 434 22 22
Mobile Phone: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No: 221, Yildirim Tower, Balgat, Cankaya / Ankara, Turkey