Decoding Business Interruption Insurance: Insight From Turkish Law

Business interruption insurance is a common industry practice that aims to protect insureds against losses that occur when its operations are unexpectedly interrupted and to place it in the position it would have occupied if the interruption had not occurred.¹ In the aftermath of catastrophic events that deeply impact individuals and businesses, it is expected that disputes arising from business interruption insurance will see a significant rise. For instance, the COVID-19 pandemic led to a global surge in such disputes, and a similar trend can be anticipated after the earthquakes that widely impacted 11 Turkish cities on February 6, 2022. This article provides an overview of how Turkish courts interpret different business interruption clauses found in policies and the common methods used to calculate losses.