Guatemala, May 2025 – With a growing legal and social awareness of the importance of preventing and responding to damages to third parties, Civil Liability (CL) Insurance is positioned as one of the most relevant and necessary coverages for both individuals and companies in Guatemala.

In simple terms, liability insurance protects the insured—whether a person or an entity—when, through accident or negligence, they cause physical, material, or moral damages to third parties. In these cases, the insurer is responsible for compensating the victims on behalf of the insured, thus preventing them from having to directly cover the costs, which in many cases can be substantial.

In Guatemala, liability insurance has diversified to adapt to the various dynamics of the economic and professional environment, providing specific protection according to the line of business or risk exposure of each activity. The main types of insurance available on the market are described below:

• General Liability Insurance: Designed for companies, businesses and organizations in general, it covers damages that may be caused to third parties in the normal course of their operations, such as accidental injuries to customers or damage to neighboring properties.
• Professional Liability Insurance: Aimed at professionals who provide specialized services — such as doctors, lawyers, architects, engineers, accountants, among others — this insurance covers the economic consequences arising from errors, omissions or negligence committed in the exercise of their profession.
• Vehicle Liability Insurance: Integrated within car insurance, it offers coverage for property damage or personal injuries caused to third parties as a result of a traffic accident. This type of coverage is particularly relevant in urban areas with high traffic density.
• Employer's Liability: Mandatory in certain sectors, this insurance protects workers against claims arising from workplace accidents caused by omissions in occupational safety or negligent conditions, guaranteeing compensation to affected workers.
• Product Liability: Designed for manufacturers, distributors and marketers, it covers damages or injuries caused to consumers by defects in the products sold, constituting a key safeguard in the commercial value chain.
• Construction Liability Insurance: An application for contractors, construction companies, or individuals carrying out construction or remodeling work. It offers coverage against damages to third parties caused by activities on the construction site, falling objects, vibrations, structural failures, and other causes.

Each of these types of insurance aims to provide a legal and financial safety net against unforeseen events that could lead to civil liability, thereby promoting a culture of prevention, regulatory compliance, and asset protection. The most common in the country are vehicle liability insurance and general business insurance, given their high risk exposure.

Since the entry into force of the Law of Insurance Activity (Decree 25-2010), the Superintendency of Banks (SIB), through the Insurance Superintendency, regulates and supervises the operation of insurance companies in the country.

Individuals or companies without this protection must bear the costs of compensation and legal defense on their own. In addition to the financial burden, they may face lawsuits, criminal consequences in serious cases, and damage to their reputation or business relationships.

Purchasing liability insurance is more affordable than you might think. Premiums vary depending on the type of activity and the desired coverage. For example:

• RC Vehicular (private): coverage from Q500,000 to Q750,000, with annual premiums starting from Q2,000.
• RC Heavy Vehicle: annual premiums around Q4,500.
• Professional RC for physicians: coverage of $250,000, with premiums of approximately $5,000 annually.
• RC for properties and operations: coverage of Q250,000 from Q1,250 annually.

“At ACORDES, we are committed to fostering a culture of prevention in Guatemala, and therefore we consider it a priority to educate the population about the value of liability insurance as an essential tool to protect both individual assets and collective well-being,” stated Byron Rodrigo Penados Zetina , President of ACORDES. “We believe that an informed citizenry is key to building a more resilient, responsible society, better prepared for everyday risks.”

It is anticipated that, with the advancement of a more proactive recovery culture and greater recognition of the risks inherent in various activities, liability insurance will continue to position itself as a key tool for strengthening trust and responsibility across all sectors.

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About CHORDS

The Guatemalan Association of Insurance and Bonding Brokers (ACORDES) is a non-profit organization founded in 1987, which currently represents 25 insurance brokerage firms in Guatemala. ACORDES is dedicated to supporting and protecting the interests of both policyholders and brokers in all matters related to insurance law in Guatemala.

Each of the companies associated with ACORDES offers personalized advice on the acquisition of policies and has the capacity to market all the products of all the insurance companies operating in the country.

According to the Superintendency of Banks (SIB) registry of intermediaries, there are 1,589 intermediaries in Guatemala: 80 dependent agents, 1,289 independent agents, and 220 insurance brokers. Brokers affiliated with ACORDES account for approximately 30% of the premiums in the insurance intermediary market, demonstrating their leadership, experience, and relevance in the national insurance sector.