What is Private Security Financial Liability Insurance?

Today, “Private Security Officers” ensure peace and security in many areas, from shopping malls to residential complexes, from hospitals to factories. However, security services inherently involve risks. A security guard damaging a customer’s car during a scuffle while apprehending a thief, a visitor’s belongings breaking while passing through an X-Ray device, or someone getting injured during an intervention… Law No. 5188 on Private Security Services applies the principle of “Strict Liability” in such situations. This means that the company or institution employing the security guard is directly responsible for the damages caused by them.
Private Security Mandatory Financial Liability Insurance is a type of insurance that private security companies or private legal entities that establish their own security units are required to obtain to compensate for damages that their employed private security officers may cause to third parties while performing their duties. As Panacea Insurance, we issue this policy within minutes to prevent the cancellation of your operating license and to protect you from facing substantial compensation claims.

Legal Obligation and Law No. 5188

This insurance is not “nice to have” but rather “mandatory.” Article 21 of the Law is very clear: “Private legal entities and private security companies are obligated to obtain private security financial liability insurance to compensate for damages that their employed private security officers may cause to third parties.”

• Operating License Requirement: Presenting insurance policies to the Provincial Governorates is mandatory for establishing a private security company or for an existing company to continue its operations.
• Penalties During Inspections: Heavy administrative fines are imposed on companies or institutions for each personnel member without insurance during Ministry of Interior inspections.
• Right of Recourse: If there is no insurance and damage occurs, the injured party can sue the employer directly, and the entire compensation will be paid from the employer’s funds.

What Does the Policy Cover?

The policy offered by Panacea Insurance is comprehensive, suitable for the risky nature of security services:

• Bodily Injuries (Death and Disability): Compensation to be paid in case a third party is injured, disabled, or dies as a result of a security officer’s intervention.
• Medical Expenses: First aid provided at the scene and subsequent hospital costs.
• Material Damages: Damages to third parties’ property (vehicle, phone, clothing, etc.) during security service.
• Legal Expenses: Attorney fees and court costs in compensation lawsuits filed against the company.
• Armed/Unarmed Distinction: The policy is issued according to whether personnel work armed or unarmed and covers damages resulting from the use of weapons (within the limits of legitimate defense).

2025 Coverage Limits and Premiums

The coverage limits for this insurance are determined annually by the Ministry of Treasury and Finance and published in the “Tariff and Instructions.” The limits set for 2025 are graduated according to the number of employed personnel:

• • 1-50 Personnel: Per Incident Material 150,000 TL / Medical 150,000 TL / Death-Disability 1,500,000 TL (These are example minimum limits; current tariff is essential).
  • 51-100 Personnel: Limits increase cumulatively as the number of personnel increases.

• 1000+ Personnel: The highest tier limits apply for large security companies.

Note: Premiums are automatically calculated based on your company’s province (Risk Zone) and number of personnel. Risk premiums are generally higher in western provinces.

Security Booth and Equipment

This insurance covers damages caused by the security officer to “third parties.” But what if a vehicle crashes into your security booth or your X-Ray device breaks down? To protect your own assets, you can review our Business Insurance page for complete protection.

Which Situations Are Covered and Which Are Not?

Knowing the limits of the insurance is important. Here is the coverage table:

Situation	Coverage Status
Barrier Falling on Visitor’s Vehicle	✅ Covered
Visitor Getting Injured While Breaking Up a Fight	✅ Covered
Security Officer’s Own Injury	❌ Not Covered (Work Accident/SSI Matter)
Intentional Assault/Battery	❌ Not Covered (Crime)
Two Security Officers Fighting	❌ Not Covered (Not Third Parties)

Who Is Required to Obtain This Insurance?

The law covers all units that have obtained a “Private Security Permit”:

• Private Security Companies (Service providers)
• Private Security Units (Shopping malls, hotels, residential complexes, factories, schools, etc. that employ their own security)
• Airport and Port Operations
• Bank Branches and Cash Transport Centers

What Should You Do When an Incident Occurs?

When an incident occurs at a security point:

1. Report: Keep a detailed incident report and back up camera footage.
2. Notification: Notify Panacea Insurance within 5 days at the latest.
3. Information: Inform the injured third party that you have an insurance policy; this demonstrates your institution’s professionalism.

You can access detailed information about private security services legislation and general terms from the General Directorate of Security Private Security Department page. Panacea Insurance produces policies fully compliant with Law No. 5188.

In conclusion, Private Security Financial Liability Insurance is the assurance of those who provide security. Fulfill your legal obligation and protect your business against unexpected compensation claims. With Panacea Insurance, let “Security” be not only your business but also your assurance.