Insurance for self-propelled work machines: Your comprehensive guide for 2025
18.05.25
7
Minutes
Katrin Straub
Managing Director at nextsure
Autonomous work machines are revolutionising many industries, but what about the requirement to have insurance and the right cover? A missing or incorrect policy can quickly lead to financial risks of several thousand euros. This article explains the current situation and shows you what to look out for.
The topic in brief and concise terms
For self-propelled working machines up to 20 km/h, coverage in Germany (as of early 2024) is still often provided through public liability insurance; no general requirement for separate motor vehicle liability insurance has been introduced for the time being.
Machines over 20 km/h usually require their own motor vehicle liability insurance; autonomous functions require an extended risk analysis and possibly special policies.
Alongside liability insurance, machinery breakdown and comprehensive insurance are important components for covering costly damage to your own property or theft, which can mean annual costs of one to two per cent of the new value.
Quick Facts: The key facts about insurance for autonomous work machines
Insurance for self-propelled work machines is a complex field with a few key points. For machines with a maximum speed of up to 20 km/h that are not subject to registration, there was initially no new general requirement for motor vehicle liability insurance in 2024. Existing commercial liability insurance policies often cover damage here, which can save several hundred euros a year. According to Section 3(2)(1a) of the Vehicle Registration Ordinance (FZV), self-propelled work machines in Germany are exempt from registration. However, this does not automatically mean exemption from any insurance requirement, especially when participating in public traffic. The debate on an expanded insurance requirement, triggered by an EU directive, could become relevant again from 2025. For machines above 20 km/h, separate motor vehicle liability insurance is generally mandatory.
Practical section: Understanding real-world scenarios and hedging options
In day-to-day operations with self-propelled work machinery, a wide range of claims can arise. An excavator travelling at up to 20 km/h damages a parked car on a public road; in many cases, public liability insurance applies, provided the damage was not caused intentionally and the cover limit is at least five million euros. If an autonomous robotic mower travelling at over six km/h causes damage on a public path, the liability question becomes more complex and a specialist policy may be required. Many businesses underestimate the risk of operator errors, which can cause damage of more than 10,000 euros to the machine itself. For this, machinery breakdown insurance is relevant. The cost of such insurance can be around one to two per cent of the machine’s new value per year. Comprehensive insurance can also cover theft or vandalism. A precise analysis of the area of use – purely private or also public – is crucial when choosing the right cover. Please note the following points for your risk assessment:
Design-based maximum speed of the machine (under or over 20 km/h).
Place of use (the company premises only or public spaces as well).
Degree of autonomy and the associated new risks.
Value of the machine and potential repair costs of over 5,000 euros.
Risk of damage to third parties (personal injury and property damage).
These considerations help to determine individual insurance needs precisely and avoid unpleasant surprises in the event of a claim.
Expert depth: Legal foundations and future developments
The legal situation for self-propelled work machines is complex. Under Section 3 of the Vehicle Registration Ordinance (FZV), they are often exempt from registration, but that does not mean they are exempt from insurance requirements. EU Directive 2021/2118 on motor vehicle liability insurance has prompted debate about extending the insurance obligation to slow-moving work machines (six to 20 km/h). Although implementation in Germany was initially halted for 2024, the developments for 2025 remain to be seen. Our expert tip: Check the current legal requirements regularly, as they can change at short notice. For autonomous work machines, additional regulations such as the EU Machinery Regulation come into play, which sets out special requirements for safety and risk assessment. The German Autonomous Driving Act (AFG) of 2021 primarily regulates use on public roads, but it may have implications for highly automated work machines. In the event of accidents involving autonomous systems, not only the owner and driver, but also manufacturers or software providers may be liable, which can require cover limits of more than ten million euros. A comprehensive business liability insurance policy should therefore also take the specific risks arising from the use of such technologies into account. Distinguishing this from motor vehicle liability insurance is crucial here.
Specialised insurance solutions: More than just liability cover
In addition to basic liability insurance for damage to third parties, operators of self-propelled work machines should consider further cover. Machinery breakdown insurance covers unforeseen damage to the machine itself, for example caused by operator error or material fatigue. Repair costs can quickly reach five-figure sums. Comprehensive insurance, similar to that for motor vehicles, protects against the financial consequences of theft, fire or natural hazards. This protection is essential, especially for expensive specialist machines whose value often exceeds EUR 100,000. If a machine is taken out of service due to damage, business interruption insurance can reimburse lost profit and ongoing costs for a period of up to twelve months. This is particularly important when the business depends heavily on individual machines. The following insurances may be relevant:
Motor vehicle liability insurance (for machines >20 km/h or where specifically required).
Public liability insurance (as basic cover, often sufficient for machines <=20 km/h).
Machinery breakdown insurance (for own damage to the machine).
Machine comprehensive insurance (against theft, fire, etc.).
Business interruption insurance (if the machine fails).
Cyber insurance (for connected, autonomous machines against hacker attacks).
A careful risk analysis helps to put together the right insurance package and avoid over-insurance, which can save up to 20 per cent on premiums.
Recommendations: How to find the optimal protection
To insure your self-propelled work machines optimally, a structured approach is recommended. First, record all your machines together with technical data such as maximum speed and degree of automation. Analyse the areas of use: Are the machines operated exclusively on your own premises, or also in public spaces? This is a decisive factor for the insurance requirement . Review your existing policies, especially public liability insurance, for the scope of cover and exclusions for work machines. Adjustments are often possible for less than EUR 100 per year, which can save thousands of euros in the event of a claim. Obtain at least two to three comparative quotes tailored specifically to your needs. Pay attention not only to the price, but also to the insurance terms and claims settlement processes. Document the condition and maintenance of your machines regularly so that you can provide evidence in the event of a claim. This can speed up processing by up to 30 per cent. If there is any uncertainty or complex arrangements, especially with autonomous systems, expert advice is essential. At nextsure, we will be happy to help you find the right and legally compliant insurance cover for your self-propelled work machines. This allows you to focus on your core business while your valuable machines are protected as well as possible.
More useful links
Wikipedia provides a comprehensive overview of self-propelled work machines.
Laws on the Internet (StVZO) contains the German Road Traffic Licensing Regulations (StVZO).
Laws on the Internet (FZV) provides section 3 of the German Vehicle Registration Ordinance (FZV).
Federal Motor Transport Authority (KBA) provides the official definition of self-propelled work machines.
Bavarian Farmers' Association provides information on motor vehicle liability insurance for work machines.
Statistical Office of Baden-Württemberg provides statistics on motor vehicle exposure in Baden-Württemberg.
Insurance Association for Accident Research (UDV) provides a report on accident research in the insurance sector.
Landvolkdienste highlights legislative changes to motor vehicle liability insurance for self-propelled work machines and forklift trucks.
FAQ
What insurance does my self-propelled work machine need?
This depends on the maximum speed and the place of use. Up to 20 km/h and where registration is not required, public liability insurance is often sufficient. Above 20 km/h, motor vehicle liability insurance is usually required. For own damage, machinery breakdown or comprehensive insurance are sensible.
What happens if my autonomous work machine causes damage and is not properly insured?
Without suitable insurance cover, as the registered keeper or driver you are liable with your private or business assets. In the event of personal injury, this can quickly lead to claims in the millions and be an existential threat.
Does my private liability insurance cover damage caused by a small self-propelled working machine (e.g. a robotic lawnmower)?
That may be possible, but it is not guaranteed. Check the terms of your private liability insurance. Often, only devices up to a certain power or speed (e.g. six km/h) and only on private property are co-insured.
How does the autonomy level affect insurance?
The greater the autonomy, the more complex the risk assessment and potentially the liability issues. Special cover for software errors, cyber risks or system failures may become necessary, going beyond standard policies.
Where can I find the legal basis for the insurance obligation?
Important laws are the Compulsory Insurance Act (PflVG), the Vehicle Registration Ordinance (FZV) and, for autonomous systems, the EU Machinery Regulation as well as national laws on autonomous driving.
How much does insurance cost for a self-propelled working machine?
The costs vary considerably. Public liability insurance can cost a few hundred euros a year. Vehicle liability insurance for larger machines can amount to several hundred to over a thousand euros. Machinery breakdown insurance often comes to one to two per cent of the new value per year.
