Professional liability insurance claim denied in Turkey? Learn how businesses and professionals can challenge coverage refusals, recover defense costs and pursue unpaid insurance compensation.

A professional liability claim can create two financial risks at the same time. First, a client, customer or third party may demand substantial compensation for an alleged professional mistake. Second, the professional liability insurer may refuse to defend the insured or pay the resulting loss. For consultants, engineers, architects, accountants, technology companies, medical professionals and other service providers operating in Turkey, this can transform a commercial dispute into a serious insurance coverage problem. A rejected claim does not necessarily mean that no insurance protection exists. The decisive issues usually include when the alleged professional error occurred, when the claim was first made, when the insurer was notified, whether the activity falls within the insured professional services, whether defense costs are covered and whether the insurer can legitimately rely on an exclusion. In high-value professional liability disputes in Turkey in 2026, businesses and professionals should therefore examine the complete policy and underlying liability claim before accepting an insurer’s rejection.

What Is Professional Liability Insurance?

Professional liability insurance is designed to protect professionals and businesses against specified liabilities arising from professional services.

Depending on the policy, protection may include compensation payable to third parties, legal defense expenses and certain costs associated with defending covered claims.

The exact scope depends on the insurance contract.

Which Professionals May Need Professional Liability Insurance?

Professional liability risks can arise for architects, engineers, accountants, consultants, technology providers, medical professionals, designers and numerous other specialist service providers.

The critical question is not merely the insured’s occupation.

The policy must cover the particular professional activity that generated the claim.

Why Are Professional Liability Claims Denied?

Insurers may reject claims for numerous reasons.

Common disputes involve late notification, claims made outside the policy period, prior-known circumstances, activities outside the declared professional services, contractual liability, intentional misconduct, inadequate documentation or exclusions relating to particular projects or services.

Each rejection ground should be examined separately.

The Written Rejection Is Important

A professional or business should obtain the insurer’s coverage position in writing.

A telephone statement that “this claim is not covered” is not sufficient for evaluating the legal basis of the rejection.

Identify the Exact Policy Provision

The insurer should identify the exclusion, definition, condition or limitation relied upon.

The insured can then compare that provision with the actual allegations and evidence.

Claims-Made Coverage Can Be Critical

Professional liability insurance frequently involves claims-made structures.

This means that the timing of the claim and notification can be just as important as the date of the alleged professional error.

Example: Engineering Error Discovered Years Later

An engineering consultancy completes a project in 2023.

A structural problem is discovered in 2026 and the client demands compensation.

The relevant coverage analysis may depend heavily on when the claim was first made and the applicable retroactive provisions.

Retroactive Dates Matter

A professional liability policy may cover qualifying claims made during the policy period arising from professional services performed after a specified retroactive date.

If the alleged error occurred earlier, the insurer may dispute coverage.

The retroactive date should therefore be checked immediately.

Continuous Insurance Can Become Important

Businesses that maintain professional liability insurance year after year should preserve previous policies.

Where claim timing is disputed, earlier policy periods may need to be reviewed.

What Counts as a “Claim”?

A lawsuit is clearly significant, but a claim can potentially arise earlier depending on the policy definition.

A written demand for compensation, arbitration notice or another formal allegation may qualify.

A Client Complaint Can Become an Insurance Issue

Suppose a client sends an email stating:

“You made a professional error that caused us EUR 500,000 in losses, and we expect reimbursement.”

The insured should not automatically wait for formal litigation before notifying the insurer.

Circumstances That May Give Rise to a Claim

Some policies allow or require notification of circumstances that may reasonably lead to a future claim.

This can be important where a problem is discovered shortly before policy expiry.

Example: Architect Discovers Design Problem

An architect learns that a design calculation may have caused construction defects.

No client claim has yet been made.

If the policy permits circumstances notification, reporting the matter may become important for future coverage.

Prior-Knowledge Exclusions

The insurer may argue that the professional already knew about the potential liability before purchasing or renewing the policy.

The actual evidence of knowledge should be examined.

Suspicion Is Not Necessarily a Known Claim

A professional may know that a client is dissatisfied without knowing that a compensation claim will be made.

The policy wording and contemporaneous correspondence can determine whether the insurer’s prior-knowledge argument is justified.

Professional Services Definition

Professional liability policies commonly define the professional services covered.

This definition can become one of the most important provisions in the entire policy.

Example: Engineering Company

An engineering company provides design, consulting, procurement and project-management services.

Its policy, however, identifies only engineering consultancy.

A claim arising from procurement activity may generate a coverage dispute.

Review the Proposal Form

The insurance application may describe the insured’s business activities in greater detail.

Proposal forms, broker correspondence and underwriting communications should therefore be preserved.

Additional Services Should Be Declared Properly

Businesses evolve.

A consultancy may begin offering software implementation. An architect may begin providing project management. An engineering firm may add construction supervision.

Insurance coverage should evolve with the business.

Contractual Liability Exclusions

Professional disputes frequently arise from contracts.

However, the existence of a contract does not necessarily mean every claim is excluded.

The critical issue is whether the alleged liability arises independently from professional wrongdoing or exists solely because the insured accepted an additional contractual obligation.

Example: Consultant Misses Deadline

A consultant’s contract promises delivery by a particular date and contains a substantial contractual penalty.

The insurer may argue that the penalty represents contractual liability rather than ordinary professional negligence.

The compensation claim and contractual penalty should be analyzed separately.

Professional Negligence Versus Commercial Failure

Professional liability insurance is not necessarily a guarantee that the insured’s business contract will be profitable or successfully performed.

A dispute over poor commercial performance may differ from a claim alleging negligent professional services.

Defense Costs Can Be Extremely Important

Even a professional who has done nothing wrong may spend significant amounts defending a claim.

Legal fees, expert reports and technical examinations can sometimes exceed the final compensation payment.

Can Professional Liability Insurance Pay Lawyers’ Fees?

Potentially, depending on the policy.

The definition of defense costs and the insurer’s obligations regarding legal representation should be examined.

Defense Costs May Be Inside the Policy Limit

A policy may provide a TRY 20 million limit while treating defense expenses as part of that amount.

If TRY 5 million is spent on the defense, only TRY 15 million may remain for other covered loss.

Other Policies May Treat Costs Differently

The structure varies.

Businesses should therefore calculate available insurance capacity rather than relying solely on the headline policy limit.

Insurer Consent to Defense Counsel

The policy may require insurer approval before lawyers or experts are appointed.

This can become problematic where urgent action is required.

Notify the Insurer Before Costs Escalate

Where reasonably possible, the insured should provide notice immediately and seek the insurer’s position regarding defense counsel and experts.

This can reduce later disputes over unauthorized expenses.

What If Immediate Legal Action Is Necessary?

Sometimes a professional receives a court document requiring an urgent response.

The insured should protect its legal position while documenting why immediate expenditure was necessary and notifying the insurer promptly.

Insurer-Appointed Lawyers and Conflicts of Interest

The insurer and insured may initially have aligned interests.

However, a conflict can arise if the insurer reserves rights or argues that some allegations are excluded.

Independent Counsel May Become Necessary

Suppose a client alleges both negligence and intentional fraud.

The insurer accepts the negligence defense but reserves rights concerning fraud.

The insured may need advice addressing the insurance coverage conflict separately from the underlying defense.

Allegations of Fraud or Intentional Conduct

Professional liability policies frequently exclude intentional, dishonest or fraudulent conduct.

However, an allegation should be distinguished from a final factual determination.

A Client Can Plead Negligence and Fraud Together

Claimants often formulate alternative allegations.

The mere presence of the word “fraud” should not automatically cause every negligence allegation to disappear for insurance purposes.

Defense Cost Coverage May Continue

Depending on the policy wording, defense expenses may potentially remain covered while allegations of intentional wrongdoing remain unproven.

The exclusion trigger should be examined carefully.

What If Intentional Wrongdoing Is Ultimately Proven?

Coverage may then be restricted or excluded according to the policy and applicable law.

Some policies may also contain provisions addressing previously advanced defense costs.

Severability Can Protect Innocent Insured Persons

A professional firm may insure multiple partners, directors or employees.

Misconduct by one person should not automatically be assumed to eliminate coverage for every other insured.

Example: Partner Misconduct

A consultancy’s partner intentionally manipulates a report without the knowledge of other professionals.

A client later sues the firm and several individual consultants.

The policy’s attribution and severability provisions may become decisive.

Errors by Employees

Professional liability claims frequently arise from mistakes committed by employees.

Whether the company and employee are protected depends on the insured-person and professional-services definitions.

Subcontractor Errors

Businesses increasingly outsource specialized work.

A client may hold the main professional firm responsible for a subcontractor’s mistake.

Does Professional Liability Insurance Cover Subcontractors?

Not automatically.

The policy may distinguish between the insured’s liability arising from subcontracted work and direct coverage for the subcontractor itself.

The subcontractor should also maintain appropriate insurance where necessary.

Architects and Engineers

Professional liability claims against architects and engineers may involve design errors, incorrect calculations, inadequate supervision, specification mistakes or project delays.

Technical expert evidence is usually central.

Design Defect Versus Construction Defect

An architect may argue that the design was correct and the contractor constructed the building incorrectly.

The contractor may blame the design.

The insurer may therefore need to evaluate causation before determining the professional liability exposure.

Multiple Professionals Can Share Responsibility

Large projects may involve architects, structural engineers, mechanical engineers, consultants and contractors.

A single defect can generate claims against several parties.

Allocation of Responsibility Matters

Professional liability compensation should reflect the insured’s legal responsibility rather than automatically assigning the entire project loss to one professional.

Accountants and Financial Professionals

Claims may involve incorrect reporting, calculation errors, tax-related professional mistakes or alleged failures to identify financial irregularities.

The policy’s specific professional-services definition remains critical.

Technology Professionals

Software developers, IT consultants and technology service providers can face claims concerning defective implementation, system failure, data loss or professional errors.

Traditional professional liability and cyber insurance may overlap.

Technology E&O and Cyber Insurance

A software company’s professional error may cause a customer’s system to fail.

A cyberattack may separately compromise data.

Determining whether professional liability, technology errors and omissions or cyber insurance responds can require comparison of several policies.

Medical Professional Liability

Healthcare-related professional liability can involve specialized insurance rules and policy structures.

These claims should be assessed under the particular professional and regulatory framework applicable to the insured.

Consultants and Advisory Firms

A client may allege that incorrect advice caused an investment, operational or commercial loss.

The insurer may dispute whether the loss resulted from professional negligence or from the client’s independent business decision.

Causation Is Essential

Professional error alone does not automatically establish the amount of liability.

The claimant must generally connect the alleged error with the financial loss claimed.

This causation issue can also affect insurance compensation.

Example: Consultant’s Incorrect Forecast

A consultant provides an allegedly inaccurate market forecast.

The client invests EUR 5 million and later suffers losses.

The professional liability dispute may involve whether the loss actually resulted from negligent advice or broader market developments.

Pure Financial Loss

Many professional liability claims involve financial losses without physical property damage.

Whether such loss falls within coverage depends on the policy.

Bodily Injury and Property Damage Exclusions

Some professional liability policies interact with general liability insurance.

Claims involving physical injury or property damage may therefore require analysis under more than one policy.

Notify Every Potentially Relevant Insurer

Where professional liability, general liability and cyber coverage potentially overlap, the business should consider notification under all relevant policies.

Do not assume one insurer will identify another policy on the company’s behalf.

What If the Client’s Claim Is Exaggerated?

Insurance coverage and the amount of underlying liability are separate issues.

The insurer should defend covered claims even where the claimant demands substantially more than the realistic loss, subject to policy terms.

Expert Evidence Can Reduce Liability

Independent engineering, accounting, medical, technical or industry experts may demonstrate that the professional complied with applicable standards.

Professional Standards Are Important

The underlying liability dispute often turns on what a reasonably competent professional should have done under the circumstances.

Professional standards, contractual scope and industry practice may all become relevant.

What If the Insurer Says There Was No Professional Error?

This may actually support the insured’s defense against the claimant.

However, the insurer should not necessarily use the insured’s denial of liability as a reason to refuse all defense-cost protection where the policy covers allegations of wrongful professional acts.

Insurance Covers Risk, Not Only Proven Liability

A liability policy would have limited practical value if defense protection arose only after the insured lost the underlying case.

The exact defense provisions therefore require careful analysis.

Settlement of Professional Liability Claims

Many professional disputes are resolved through negotiated settlement.

The D&O-style issue of insurer consent is also relevant in professional liability insurance.

Do Not Settle Without Reviewing Consent Requirements

An insured may wish to preserve a valuable commercial relationship by settling quickly.

A settlement concluded without required insurer approval can generate a separate coverage dispute.

Settlement Does Not Necessarily Mean Admission of Negligence

Commercial settlements may reflect litigation risk and cost rather than an admission of wrongdoing.

Settlement documentation should be drafted carefully.

Can the Insurer Refuse a Reasonable Settlement?

The answer depends on the policy and circumstances.

The insured should document the proposed settlement, potential exposure, expected defense costs and insurer’s response.

Claim Amount Exceeding the Policy Limit

A client may demand EUR 10 million while the professional liability limit is EUR 2 million.

The insured therefore has a personal financial interest in how the defense and settlement are managed.

Excess Insurance

Large professional firms may maintain excess layers above the primary policy.

Excess insurers should be notified according to their own requirements before the primary limit is exhausted.

Deductibles and Self-Insured Retentions

Professional liability policies commonly require the insured to bear an initial portion of the loss.

The distinction between a deductible and self-insured retention can affect defense-cost arrangements.

Check Whether Defense Costs Apply to the Deductible

A company may assume that only compensation payments count toward its deductible.

The policy may provide otherwise.

Policy Sublimits

Certain professional services, jurisdictions or cost categories may be subject to lower sublimits.

The complete policy schedule and endorsements should therefore be reviewed.

Territorial Limits

A Turkish professional may provide services to clients in Germany, the United Kingdom, the United States, the Gulf or elsewhere.

The policy should be checked to determine whether claims arising from those services fall within territorial coverage.

Jurisdictional Limits

Worldwide services do not necessarily mean worldwide litigation coverage.

Some policies distinguish where services may be performed from where claims may be brought.

Foreign Court Proceedings

A Turkish consultancy may be sued abroad.

Foreign legal fees can be substantial.

The insured should immediately determine whether foreign defense expenses and the relevant jurisdiction fall within the policy.

Choice of Law Can Matter

International professional-services contracts may contain foreign governing-law or arbitration clauses.

The underlying liability dispute and the insurance dispute may therefore involve different legal frameworks.

Arbitration Claims

A professional-services agreement may require arbitration rather than court litigation.

The professional liability policy should be checked to determine whether arbitration constitutes a covered claim.

Pre-Litigation Mediation and Negotiations

A client may demand compensation before filing proceedings.

The insured should notify the insurer before substantive settlement negotiations where the policy requires insurer involvement.

Late Notification

Late notification is one of the most common sources of professional liability coverage disputes.

The insured should notify the insurer as soon as a potentially covered claim arises.

Do Not Wait for the Lawsuit

A written compensation demand may already trigger notification obligations.

Waiting several months for litigation can unnecessarily create a late-notice defense.

Create a Claim Chronology

The business should record:

Professional service performed → problem discovered → client complaint → compensation demanded → insurer notified → proceedings commenced.

This chronology helps identify the correct policy period.

What If the Insurer Says Notice Was Too Late?

The exact policy requirement, timing and consequences of the alleged delay should be examined.

A late-notification allegation should not simply be accepted without analyzing the insurance contract and applicable law.

Insurer Prejudice May Become Relevant

Depending on the applicable legal analysis, the effect of delayed notice on the insurer’s ability to investigate or defend the claim may become relevant.

The factual consequences of the delay should therefore be documented.

Missing Documents

The insurer may request extensive documentation before deciding coverage.

The insured should cooperate reasonably while maintaining a complete record of what was requested and supplied.

Create a Document Index

For substantial claims, documents should be organized by category:

policy documents, professional contract, technical records, client correspondence, claim documents, expert reports, defense invoices and insurer correspondence.

Preserve Original Electronic Records

Emails, design files, accounting records, project-management data and software logs may become critical.

Original files can be more valuable than screenshots or printed copies.

Do Not Alter Project Records After a Claim

Once a professional liability dispute is foreseeable, relevant records should be preserved.

Retroactively changing technical or project documentation can create serious evidentiary and credibility problems.

Professional Contract Is Essential Evidence

The contract identifies what the professional actually agreed to do.

A claimant may allege failure to perform obligations that were never within the professional’s contractual scope.

Scope-of-Work Disputes

Professional liability often turns on whether the disputed task was part of the insured’s responsibility.

Proposals, amendments and client instructions should therefore be preserved with the main contract.

Limitation-of-Liability Clauses

Professional-services contracts may contain contractual limits on the professional’s liability.

Whether enforceable and applicable must be analyzed separately from the insurance limit.

Contractual Liability Limit and Insurance Limit Are Different

A professional may have EUR 5 million insurance but contractually limit liability to EUR 1 million.

Alternatively, contractual exposure may exceed available insurance.

The two figures should never be confused.

Indemnity Clauses

Professional contracts may require broad indemnities.

The insurer may argue that the insured assumed liabilities exceeding those imposed by ordinary law.

Such clauses should be reviewed before contracts are signed and again after a claim arises.

Consequential Loss Exclusions

The underlying contract or insurance policy may exclude certain indirect or consequential losses.

Whether the client’s claimed lost profits qualify requires careful analysis.

Lost Profit Claims

Clients often claim that a professional mistake caused them to lose future revenue.

These claims can be much larger than the professional’s fee.

Causation and contractual limitations become particularly important.

Example: Software Implementation Failure

A technology consultant receives EUR 300,000 for implementing a system.

The client alleges that implementation errors caused EUR 8 million in lost sales.

The insurer and insured must analyze professional negligence, causation, contractual liability and the policy’s treatment of consequential loss.

Return of Professional Fees

Some policies may distinguish compensation for third-party loss from return or disgorgement of the professional’s own fees.

A demand for repayment of fees should therefore be classified separately.

Rectification Costs

The professional may want to correct defective work before the client suffers further loss.

Whether the cost of rectifying the insured’s own work is covered depends on the policy.

Mitigation Costs

Expenses reasonably incurred to prevent a larger insured liability may potentially raise separate coverage questions.

The insurer should be notified before substantial mitigation costs are incurred where possible.

Example: Design Error Discovered Before Collapse

An engineer discovers a design problem before any structural failure.

Immediate reinforcement costs EUR 2 million but potentially prevents far greater property damage.

Whether those preventive costs fall within professional liability coverage requires detailed policy analysis.

Multiple Claims From the Same Error

One professional mistake may affect dozens or hundreds of clients.

The policy may treat these as related claims.

Related Claims Provisions

Related claims can be deemed a single claim first made on an earlier date.

This can determine the policy year, deductible and available limit.

Example: Accounting Software Error

A software error affects 100 customers.

Each customer demands compensation separately.

The insurer may argue that all demands arise from one related professional error and therefore constitute a single claim.

Aggregation Can Help or Hurt the Insured

One claim may mean only one deductible.

But it may also mean only one policy limit.

The related-claims provision should therefore be analyzed carefully.

Renewal Applications After a Known Problem

If a professional becomes aware of a serious potential claim shortly before renewal, accurate disclosure and timely circumstances notification can be critical.

Failing to address the issue may create later coverage disputes.

Cancellation or Non-Renewal

Ending the policy does not necessarily end exposure to future claims arising from past professional work.

Run-off or extended reporting protection may therefore be important.

Professionals Retiring or Selling Their Practice

A consultant or professional firm may stop operating but still face claims years later.

Tail or run-off insurance should be considered before the practice closes.

Merger and Acquisition Transactions

A buyer acquiring a professional-services company should investigate historic professional liability exposures.

The seller’s existing policy may not automatically protect the buyer against every legacy claim.

Claims Against Individual Employees

A client may sue both the company and the individual professional.

The policy should be checked to determine whether both qualify as insured persons.

Allocation of Defense Costs

Where covered and uncovered defendants or allegations appear in the same proceeding, the insurer may seek to allocate defense expenses.

The allocation should reflect the actual legal work performed.

Arbitrary Allocation Should Be Challenged

If the insurer simply agrees to pay 40% of legal costs without explaining why, the insured should request the contractual and factual basis for that percentage.

Reservation of Rights

An insurer may agree to participate in the defense while reserving its right to deny coverage later.

A reservation of rights is not necessarily the same as final rejection.

Analyze Every Reservation Ground

The insured should identify each exclusion or limitation cited and respond to inaccurate factual assumptions early.

What If the Insurer Pays Only Part of the Claim?

The insured should request a detailed calculation.

The disputed balance may concern defense costs, deductibles, policy limits, excluded loss categories or valuation.

Request Undisputed Compensation

Where part of the claim is accepted, payment of the undisputed amount may be sought without necessarily abandoning the contested balance.

Any release document should be reviewed carefully.

Full and Final Settlement Risks

An insurer may offer immediate partial payment in exchange for complete discharge.

A business experiencing financial pressure should understand the legal effect before signing.

Can Interest Be Claimed on Late Insurance Compensation?

Potentially, where insurance compensation has become due but remains unpaid.

The chronology of notification, requested documents, coverage decisions and payment demands should therefore be preserved.

Can Professional Liability Insurance Disputes Go to Insurance Arbitration?

Depending on the insurer, policy and applicable procedural requirements, insurance arbitration may potentially be available.

The appropriate procedure should be determined from the individual case.

Can a Lawsuit Be Filed Against the Insurer?

Where applicable procedural requirements are satisfied, court proceedings may be pursued to recover unpaid insurance compensation.

Complex professional liability disputes often require coordination between the underlying professional-negligence defense and the separate insurance coverage dispute.

The Liability Defense and Coverage Claim Should Be Coordinated

The insured may deny that any professional negligence occurred while simultaneously maintaining that any liability ultimately established is insured.

Those positions are not inherently inconsistent.

Avoid Admissions to Obtain Insurance Coverage

A professional should not unnecessarily admit negligence merely to demonstrate that the claim fits the insurance policy.

Coverage strategy and liability defense should be coordinated.

What Evidence Is Most Important?

The strongest professional liability insurance file usually includes the complete insurance policy, endorsements, proposal form, professional-services contract, project records, client correspondence, claim documents, technical evidence, expert reports, insurer correspondence and defense-cost invoices.

Build Two Separate Files

The first should address the underlying professional liability:

Did the professional actually make an error and did it cause the claimed loss?

The second should address insurance coverage:

If liability exists, does the policy require the insurer to defend or compensate it?

Keeping these questions separate improves both defenses.

2026 Strategy for Challenging a Denied Professional Liability Insurance Claim in Turkey

A business or professional facing a denied professional liability insurance claim in Turkey in 2026 should first obtain the complete policy, endorsements, proposal documents, security or risk questionnaires where relevant, broker correspondence and the insurer’s written rejection. The professional-services contract and complete underlying claim file should then be reviewed to determine what services were actually undertaken and what error is alleged. The chronology should establish when the professional work occurred, when the problem became known, when the first demand was made and when the insurer was notified. Claims-made provisions, retroactive dates, prior-knowledge clauses and related-claims provisions should then be analyzed. The insurer’s exclusions concerning contractual liability, intentional conduct, professional scope or other matters should be compared with the actual allegations rather than accepted as broad labels. Defense expenses, compensation demands, settlements, rectification costs and other losses should be separated because different policy provisions may apply. The practical recovery strategy is therefore: obtain the complete policy → identify the first claim date → verify the retroactive date → establish insured professional services → notify the insurer → preserve technical and contractual evidence → challenge unsupported exclusions → secure defense-cost protection → quantify covered liability → request undisputed amounts → protect settlement rights → pursue the unpaid insurance compensation.

Frequently Asked Questions

1. Can a professional challenge an insurer’s rejection of a liability claim?

Yes. The rejection should be tested against the complete policy, underlying allegations, claim chronology and applicable insurance-law rules.

2. Can professional liability insurance cover lawyers’ fees?

Potentially. Many policies provide some form of defense-cost protection, although limits, deductibles and insurer-consent requirements can apply.

3. What if the professional mistake happened several years before the claim?

Coverage may still potentially exist under a claims-made policy if the claim satisfies the applicable policy-period, retroactive-date and notification requirements.

4. Should the insurer be notified before the client files a lawsuit?

Potentially, yes. A written compensation demand or known circumstance may already trigger or justify notification depending on the policy.

5. Can the insurer deny the entire claim because the client alleges fraud?

Not necessarily. Allegations of negligence and intentional wrongdoing should be distinguished, and the policy should be examined to determine when any conduct exclusion becomes applicable.

6. Are defense costs included within the insurance limit?

They can be. Some policies allow defense expenses to reduce the available liability limit, while others may operate differently. The individual policy must be checked.

7. Can lost-profit claims by a client be covered?

Potentially, but coverage depends on the policy, underlying legal liability, causation and any exclusions concerning consequential or contractual losses.

8. What if a subcontractor caused the professional error?

The insured business may still face liability, but whether the resulting claim is covered depends on the policy’s treatment of subcontracted professional services.

9. Can the insurer refuse compensation because the insured settled with the client?

Potentially, particularly where the policy required prior insurer consent. Settlement provisions should therefore be reviewed before an agreement is signed.

10. Can a foreign professional or foreign-owned business pursue a professional liability insurance claim in Turkey?

Yes, where the relevant rights arise under an applicable insurance arrangement. Foreign ownership or nationality does not itself prevent an insurance compensation claim.

Legal Support for Professional Liability Insurance Claims in Turkey

Professional liability insurance disputes can involve claim denials, professional negligence allegations, defense costs, claims-made provisions, retroactive dates, contractual liability exclusions, engineering and architectural claims, consultancy disputes, technology errors, settlements and insurer underpayment. Early review is particularly important because a professional must often defend the underlying claim while simultaneously preserving rights against the insurer.

Fırat Fesih Kaya Law Office provides legal assistance to Turkish and foreign professionals, consultancy firms and businesses concerning rejected or underpaid professional liability insurance claims and disputes over defense costs and insurance compensation.

Fırat Fesih Kaya can assess the professional liability policy and underlying claim, analyze the insurer’s rejection grounds, coordinate insurance coverage strategy with the defense of the professional liability proceedings and pursue outstanding defense costs and covered compensation through the appropriate legal procedures.

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