What is Dangerous Goods and Hazardous Waste Compulsory Liability Insurance?

Flammable, combustible, and explosive materials—essential to industrial production and the energy sector—also carry a high potential for risk. An explosion at an LPG filling station, a leak in a chemical warehouse, or a cylinder sold by a gas dealer exploding in a home… These types of disasters cause damage not only to the business but also to surrounding buildings, vehicles, and people (third parties) that is difficult to compensate. Dangerous Goods and Hazardous Waste Compulsory Liability Insurance is a liability policy that covers the material and bodily damages that companies engaged in the production, storage, transport, or sale of these substances may cause to third parties as a result of accidents that may occur during their professional activities.

This insurance is not optional. Pursuant to the Council of Ministers Decision No. 2010/190 and relevant regulations, it is mandatory for businesses operating with such risks. At Panacea Insurance, we issue this policy, which is necessary for your business to obtain a license and continue its operations, in accordance with the latest regulatory limits.

Legal Requirement and Scope of Businesses

To protect its citizens and the environment, the State imposes the principle of “Strict Liability” on firms dealing with dangerous goods. This means that if an accident occurs, the firm must compensate for the damage even if there is no negligence (except for force majeure). Businesses without insurance face heavy administrative fines and may have their operations halted. The following businesses are required to have this insurance:

• LPG and Bottled Gas Firms: LPG filling stations, distribution companies, and retail bottled gas dealers.
• Fuel Stations: Stations that sell LPG (Autogas).
• Explosives Manufacturers: Those who produce, store, or sell dynamite, gunpowder, cartridges, and similar explosive materials.
• Pyrotechnic Material Sellers: Those who sell entertainment explosives such as fireworks and sparklers.
• Chemical Substance Manufacturers: Those who produce or store flammable chemicals such as paint, varnish, thinner, synthetic gasoline, and acids.
• Hazardous Waste Processors: Facilities that collect, transport, or dispose of hazardous waste within the scope of the Environmental Law No. 2872.

What Does the Policy Cover?

The policy offered by Panacea Insurance covers the following damages caused to third parties by your business, “regardless of whether there is fault”:

• Material Compensation: Damages to neighboring buildings, vehicles, or the environment as a result of an explosion or fire.
• Bodily Damages: Treatment expenses and permanent disability/death compensations in case third parties are injured as a result of an accident.
• Legal Expenses: Attorney fees and court costs in compensation lawsuits filed against the business.
• Environmental Pollution Coverage: (By additional agreement) The cleaning costs of pollution resulting from a leak.

Is Your Own Workplace Secure?

This insurance only protects “Third Parties.” Damage to your own building, machinery, or stocks as a result of an explosion occurring in your own workplace is not the subject of this policy. To protect your own assets, you should create a comprehensive protection package by reviewing our Workplace Insurance (Fire Policy) page. The two policies complement each other.

2026 Coverage Limits (Current Tariff)

The SEDDK and the Treasury have updated the minimum coverage limits for 2026 due to increasing costs. Businesses are required to have policies issued in accordance with these new limits. According to the 2026 tariff:

• Material Damages (Per Accident): 1,300,000 TL
• Treatment Expenses (Per Person): 1,500,000 TL
• Treatment Expenses (Per Accident): 7,500,000 TL
• Disability and Death (Per Person): 1,500,000 TL
• Disability and Death (Per Accident): 7,500,000 TL

Note: These figures are minimum limits. Depending on the risk size of your business, it is strongly recommended to increase these limits with Voluntary Financial Liability insurance.

Which Situations are Paid and Which are Not?

Knowing the limits of the insurance is critical for managing expectations. Here is the coverage table:

Situation	Coverage Status
Gas Cylinder Exploding in a Customer’s Home	✅ Paid
LPG Tank Leaking and Polluting a Neighbor’s Garden	✅ Paid
Damage to the Owner’s Own Vehicle	❌ Not Paid (Own Property)
Employees Having an Occupational Accident	❌ Not Paid (Subject of Employer’s Liability)
Fire Started Intentionally	❌ Not Paid (Intent)

What Should You Do at the Moment of an Accident?

In case of an explosion, fire, or leak:

1. Safety and Notification: First, take the necessary safety precautions (Fire Department, AFAD). Then, notify Panacea Insurance within 5 days.
2. Reports: Obtain the fire department report, gendarmerie/police report, and scene photographs in full.
3. Claims: Forward compensation claims (written warnings, lawsuit petitions) from third parties to the insurance company without delay.

You can find the most up-to-date legislation regarding the general conditions and tariff instructions for dangerous goods insurance on the official website of the Insurance Association of Türkiye (TSB). Panacea Insurance ensures 100% legal compliance for your business.

In conclusion, Dangerous Goods and Hazardous Waste Compulsory Liability Insurance is the safety valve for your high-risk operations. A small spark can turn into a major disaster in an instant; however, with the right insurance, your future is secure. Manage the risks and focus on your business with Panacea Insurance. We wish you accident-free days.