Professional Indemnity Insurance for Lawyers in Türkiye

By What Standard Is a Lawyer's Liability Measured?

Professional indemnity insurance for lawyers responds, within the policy limits, to loss caused to a client by the lawyer's negligence. It rests on two documents: the Professional Liability Insurance General Conditions and the Lawyers' Professional Liability Clause annexed to them.

The liability the policy assumes comes from the Attorneyship Law and the Turkish Code of Obligations. Article 34 of the Attorneyship Law (No. 1136) requires lawyers to carry out the work they undertake with care, honesty and dignity, and to observe the professional rules laid down by the Union of Turkish Bar Associations.

Article 171 adds a further measure: a lawyer pursues the matter to its conclusion in accordance with the law, even where there is no written engagement. The absence of a retainer removes neither that duty nor the liability attaching to it.

Because an attorneyship engagement is in the nature of a mandate, Article 506 of the Turkish Code of Obligations (No. 6098) also applies: the duty of care is assessed by reference to a prudent agent undertaking similar work in the same field. The benchmark is the prudent practitioner, not the average one.

The duty to decline instructions under Article 38 belongs to the same picture. Taking on a matter in which assistance was previously given to a party with opposing interests can trigger both disciplinary and compensation liability.

What the Lawyers' Clause Covers, and Whether It Is Compulsory

The Lawyers' Professional Liability Clause annexed to the general conditions defines the cover through three categories of fault: failure to perform the retainer properly, failure to discharge the duty of care owed to the client, and other negligent conduct — in each case while performing the activity described in the policy. Compensation payable for such loss is covered within the policy limits, together with litigation costs and attorney fees where agreed.

The final paragraph of Article A.1 is decisive for law firms. Where the insurance covers liability connected with the insured's business, and unless the contract provides otherwise, it also covers the representative and the persons engaged in the management, supervision and operation of the business. A policy in the firm's name can therefore extend to associates and staff — but only absent a contrary provision.

The territorial limit is in Article A.2: the cover applies to activity performed within the borders of the Republic of Türkiye. Firms handling matters with a foreign element must agree overseas cover separately.

The insurance is not compulsory: Law No. 1136 imposes no obligation to buy it. The profession differs here from those, such as physicians and dentists, whose own legislation contains an express requirement. Being voluntary does not make the cover second rate — the annexed clause addresses legal practice by name and sits within the same framework as the compulsory lines.

What Falls Outside the Cover?

Part two of the Lawyers' Clause adds a profession-specific exclusion, without prejudice to the absolute exclusions in Article A.3: loss arising from failure to keep, or from misuse of, secrets connected with the client falls outside the cover.

Part three lists three groups excluded unless otherwise agreed: claims brought under laws other than the legislation of the Republic of Türkiye; claims from the intentional acts of persons for whose conduct the insured is responsible; and claims from the misinterpretation or misapplication of, or non-compliance with, foreign legislation.

The general conditions' own exclusions sit on top. Under Article A.3, claims from work outside the activity defined in the policy, conduct intentionally caused, and events under the influence of alcohol, drugs or narcotics can never be covered. Article A.4 headings can be bought back: non-pecuniary damages (A.4.2/f), loss of documents (A.4.1/a) and fines (A.4.3/a).

Two Separate Limitation Clocks

This is the point most often confused in lawyers' files: the period within which the client may sue runs independently of the period applying to claims under the insurance contract. A third period exists too — Article B.1, which fixes the events the cover attaches to.

Five Points to Check Before Buying

The clauses that make the difference on a lawyer's policy are well defined. When comparing quotations, read these five lines one by one:

• Activity description — the cover follows the activity written into the policy, not the title (Art. A.1). Mediation, arbitration, directorships or acting as a court-appointed custodian may fall outside if undescribed.
• Trigger — whether the contract is written on limb (a) or limb (b) of Article A.1. Under limb (b) the retroactive period cannot be shorter than one year, decisive for a long practice.
• Firm-wide scope — where the policy is in a firm's name, the final paragraph of Article A.1 extends cover to persons engaged in the business; check for a contrary provision.
• Non-pecuniary damages — excluded under Article A.4.2/f unless agreed. Discuss a buy-back where personality rights claims are foreseeable.
• Notification regime — events that may give rise to liability must be notified within ten days (Art. B.2), and a settlement made without the insurer's approval is ineffective if approval is withheld beyond fifteen days (Art. B.3.4).

The Agency's Role and the Next Step

On a lawyer's policy the cover is determined less by the size of the limit than by the accuracy of the activity description. If the work actually undertaken is not fully written in, the file falls outside the cover whatever the limit may be.

Under Article B.5, the injured party may claim up to the sum insured directly from the insurer. That does not remove the lawyer's own duty to notify; the two routes run in parallel.

RYL Sigorta Aracılık Hizmetleri Limited Şirketi is an insurance agency. We prepare quotations from the insurers we act for that match your firm's practice areas and file profile, setting the activity description, the retroactive period and the buy-back sections side by side. The policy is issued by the insurance company, and the indemnity is paid by it.

To discuss the right cover structure for your firm, complete the quotation form.

Frequently Asked Questions

Sources

• SEDDK — Insurance General Conditions
• Professional Liability Insurance General Conditions and Lawyers' Clause (full text)
• Attorneyship Law No. 1136
• Law No. 6098, Turkish Code of Obligations

This article is for information only; the scope of cover is set by the policy’s specific and general terms.