Compulsory and recommended business insurances in North Cyprus
This guide summarises the main types of insurance a business may meet in the Turkish Republic of Northern Cyprus and separates what is legally compulsory from what is practically advisable. The social insurance that covers employees' social security is not the subject here; this article addresses cover for the business's assets and liabilities.
Compulsory: motor insurance
Compulsory Motor Third Party Liability insurance is a legal requirement for every vehicle in North Cyprus. It is governed by the Chapter 333 Motor Vehicles (Third Party Insurance) Law and covers bodily injury and property damage to third parties. Business vehicles fall within this requirement.
Recommended cover
The following insurances are not a legal requirement for every profession, but are strongly advisable depending on business risk.
| Insurance | Scope |
|---|---|
| Employer liability | Compensation an employer may have to pay for an employee's work accident beyond the social insurance benefit |
| Workplace (fire) | Fire, lightning, theft and equipment damage |
| Professional indemnity | Third party loss arising from professional error or omission |
Confirm whether a given cover is compulsory or recommended for your business according to your line of activity.
Sector and regulation
Insurers in North Cyprus are regulated locally and the sector is represented under the Turkish Cypriot Insurance and Reinsurance Companies Association (KKSRSB). Before buying a policy, it is important to compare the scope of cover, exclusions and limits.
Summary for owners
- Keep compulsory motor insurance in place for your vehicle fleet.
- Assess employer liability cover against work accident risk.
- Protect your premises against fire and theft.
- Consider a professional indemnity policy if your professional risk is high.
Frequently asked questions
Which business insurance is a legal requirement in North Cyprus?
Compulsory Motor Third Party Liability insurance is a legal requirement for vehicles. Fire, employer liability and professional indemnity insurance are generally recommended cover.
Does employer liability insurance replace social insurance?
No. Social insurance protects the employee; employer liability insurance covers compensation the employer may have to pay beyond that.
What does workplace insurance cover?
It generally covers fire, lightning, theft and equipment damage; the scope varies by policy.
Sources
This article is for general information; requirements and scope can change with legislation and by policy. Contact us for insurance needs tailored to your business.