Insurance for Self-Propelled Work Machines: Your Comprehensive Guide for 2025
18 May 2025
11
Minutes
Katrin Straub
CEO at nextsure
Self-driving work machines are revolutionising many industries, but what about insurance obligations and the appropriate coverage? A lack of or incorrect cover can quickly lead to financial risks of several thousand euros. This article explains the current situation and highlights what you need to pay attention to.
The topic in brief and concise terms
For self-propelled work machines up to 20 km/h, coverage through business liability insurance often still applies in Germany (as of early 2024); a general obligation for separate motor vehicle liability insurance has not yet been introduced.
Machines exceeding 20 km/h generally require their own motor vehicle liability insurance; autonomous functions necessitate a comprehensive risk assessment and possibly special policies.
Alongside liability insurance, machinery breakdown and comprehensive insurance are essential components to cover expensive property damage or theft, which can amount to annual costs of one to two per cent of the new value.
Quick Facts: The essentials of insurance for self-driving work machines
Insurance for self-propelled work machinery is a complex field with several important key points. For machines with a maximum speed of up to 20 km/h, which do not require registration, there was initially no new general obligation for motor vehicle liability insurance in 2024. Existing business liability insurance policies often cover damages here, which can save hundreds of euros annually. Self-propelled work machines are exempt from registration according to Paragraph 3, Section 2, Number 1a of the Vehicle Registration Ordinance (FZV) in Germany. However, this does not automatically mean exemption from all insurance obligations, especially when participating in public traffic. The discussion about an extended insurance obligation, initiated by an EU directive, could become relevant again from 2025. For machines exceeding 20 km/h, a separate motor vehicle liability insurance is generally mandatory.
Practice Part: Understanding Real Scenarios and Coverage Options
In the daily operation of self-driving work machines, a variety of damage cases can occur. An excavator travelling up to 20 km/h damages a parked car on a public road; in this case, operational liability insurance often applies, provided the damage was not caused intentionally and the coverage amount is at least five million euros. If an autonomous lawn mower travelling over six km/h causes damage on a public path, the liability question becomes more complex, and a special policy might be necessary. Many companies underestimate the risk of operating errors that can lead to damage over 10,000 euros to the machine itself. For this, machinery breakdown insurance is relevant. The cost of such insurance can be about one to two percent of the new value of the machine per year. A comprehensive insurance policy can additionally cover theft or vandalism. A detailed analysis of the operational area – purely private or also public – is crucial for choosing the right protection. Consider the following points for your risk assessment:
Machine's maximum design speed (below or above 20 km/h).
Location of operation (exclusively company premises or also public spaces).
Degree of autonomy and associated new risks.
Value of the machine and potential repair costs exceeding 5,000 euros.
Risk of damage to third parties (personal and property damage).
These considerations help to accurately determine the individual insurance requirements and avoid nasty surprises in the event of damage.
Expert Depth: Legal Foundations and Future Developments
The legal situation for self-driving work machines is complex. According to paragraph three of the Vehicle Registration Ordinance (FZV), they are often exempt from registration, which does not equate to being exempt from insurance. The EU directive 2021/2118 on motor vehicle liability insurance has sparked discussion about extending insurance requirements for slow-moving work machines (six to 20 km/h). Although implementation in Germany was initially halted for 2024, developments for 2025 remain to be seen. Our expert tip: Regularly check the current legal requirements, as these can change at short notice. For autonomous work machines, additional regulations come into play, such as the EU Machinery Regulation, which imposes special requirements on safety and risk analysis. The German Law on Autonomous Driving (AFG) of 2021 primarily governs its use on roads but may have implications for highly automated work machines. In case of accidents with autonomous systems, not only owners and drivers but also manufacturers or software providers could potentially be liable, which may require coverage amounts exceeding ten million euros. Therefore, a comprehensive public liability insurance should definitely take into account the specific risks posed by the use of such technologies. The distinction from motor vehicle liability is crucial here.
Specific insurance solutions: More than just liability
In addition to the basic liability insurance for damages to third parties, operators of self-propelled work machinery should consider additional coverage. Machinery breakdown insurance covers unforeseen damage to the machine itself, for example due to operator error or material fatigue. Repair costs can quickly reach five-figure sums. A comprehensive insurance, similar to that for motor vehicles, protects against the financial consequences of theft, fire, or natural damage. Especially for expensive special machinery, often valued at over €100,000, this protection is essential. In the event that a machine fails due to damage, business interruption insurance can cover lost profits and ongoing costs for up to twelve months. This is particularly important if the business is heavily reliant on individual machines. The following insurances may be relevant:
Motor vehicle liability insurance (for machines >20 km/h or if specifically required).
Business liability insurance (as basic coverage, often sufficient for machines <=20 km/h).
Machinery breakdown insurance (for own damage to the machine).
Machinery comprehensive insurance (against theft, fire, etc.).
Business interruption insurance (in case of machine failure).
Cyber insurance (for networked, autonomous machines against hacker attacks).
A thorough risk analysis helps to assemble the appropriate insurance package and avoid overinsurance, which can save up to 20 percent of premiums.
Recommended Actions: How to Find the Optimal Protection
To optimally insure your autonomous work machines, a structured approach is recommended. First, record all your machines with technical data such as maximum speed and level of automation. Analyse the areas of use: Are the machines operated exclusively on your own premises or also in public spaces? This is a crucial factor for the insurance requirement. Review your existing policies, particularly the business liability policy, for coverage scope and exclusions for work machines. Often, adjustments can be made for less than 100 euros per year, potentially saving thousands of euros in the event of a claim. Obtain at least two to three comparative offers specifically tailored to your needs. Pay attention not only to the price but also to the insurance terms and claims handling processes. Regularly document the condition and maintenance of your machines to provide evidence in the event of a claim. This can accelerate processing by up to 30 percent. In cases of uncertainty or complex scenarios, especially with autonomous systems, expert advice is essential. At nextsure, we are happy to help you find suitable and legally compliant insurance coverage for your autonomous work machines. This way, you can focus on your core business while your valuable machines are optimally insured.
More useful links
Wikipedia offers a comprehensive overview of self-driving work machines.
Gesetze im Internet (StVZO) contains the German Road Traffic Licensing Regulations (StVZO).
Gesetze im Internet (FZV) provides Paragraph 3 of the German Vehicle Registration Ordinance (FZV).
Kraftfahrt-Bundesamt (KBA) offers the official definition of self-driving work machines.
Bayerischer Bauernverband provides information on motor vehicle liability insurance for work machines.
Statistisches Landesamt Baden-Württemberg offers statistics on vehicle strain in Baden-Württemberg.
Unfallforschung der Versicherer (UDV) presents a report on accident research in the field of insurance.
Landvolkdienste sheds light on changes in legislation regarding motor vehicle liability for self-driving work machines and forklifts.
FAQ
What insurance does my self-driving work machine need?
It depends on the maximum speed and the location of use. Up to 20 km/h and not requiring registration, operational liability insurance is often sufficient. Over 20 km/h usually requires motor liability insurance. For own damages, machinery breakdown or comprehensive insurance are advisable.
What happens if my self-driving work machine causes damage and is not properly insured?
Without appropriate insurance coverage, as the owner or driver, you are liable with your private or business assets. In the case of personal injury, this can quickly lead to claims amounting to millions and become a threat to your existence.
Does my private liability insurance cover damages caused by a small self-driving work machine (e.g., lawn mowing robot)?
That is possible, but not guaranteed. Check the terms and conditions of your personal liability insurance. Often, only devices up to a certain power or speed (e.g., six km/h) and only on private property are covered.
How does the level of autonomy affect insurance?
The higher the autonomy, the more complex the risk assessment and potentially the liability issues. Specific coverage may be required for software errors, cyber risks, or system failures that go beyond standard policies.
Where can I find the legal basis for compulsory insurance?
Important laws include 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.
What is the cost of insurance for a self-driving work machine?
The costs vary significantly. A commercial liability insurance can cost a few hundred euros per year. A motor vehicle liability insurance for larger machinery can range from several hundred to over a thousand euros. Machinery breakdown insurance is often around one to two percent of the new value per year.
