The Law 5/2025, of July 24, The Spanish Government has modified the civil liability and insurance regime for the circulation of motor vehicles in Spain. One of its most significant changes for companies was the expansion of the legal definition of “motor vehicle”, which can affect certain forklifts, self-propelled pallet trucks and industrialrial agricultural machinery. The rule was published in the BOE on July 25, 2025.
In 2026 there is a particularly important issue: The six-month transitional period for vehicles that have been converted into motor vehicles has now ended. Therefore, companies must have reviewed which equipment in their fleet meets the legal definition and is subject to mandatory insurance.
However, it is not correct to state that every forklift, pallet truck or agricultural machine automatically requires the same insurance due to the mere name of the equipment. The answer depends on its Technical characteristics and, to analyze the coverage of a specific accident as a fact of the traffic, also of the role that the vehicle was playing at that moment.
What changed with Law 5/2025?
The reform expanded the concept of motor vehicle for compulsory insurance purposes and removed the previous regulatory restriction that linked it to vehicles subject to administrative authorization to operate. This makes it necessary to review equipment that could previously be excluded from the mandatory regime even though it carried out its activity in warehouses, industrialrial plants, agricultural farms or private premises.
For companies with a large fleet of self-propelled equipment, this review should be part of a more comprehensive risk management and safety program. insurance for the industrial sectorrial. PIB Group Iberia includes within this scope solutions related to civil liability, damage, transport and machinery failure, among other risks that are always subject to the conditions of each policy.
When is a team considered a “motor vehicle”?
The Article 1 bis incorporated by Law 5/2025 considers a motor vehicle, among other presumptions, a motor vehicle driven exclusively by mechanical force that travels on the ground, does not use a railway track, and meets the following requirements: one of these two alternatives:
- Having a Maximum manufacturing speed exceeding 25 km/h; or
- Having a Maximum net weight exceeding 25 kg and, at the same time, a Maximum manufacturing speed exceeding 14 km/h.
The following are also included: trailers and semi-trailers intended for use with the vehicles included in the legal definition.
The second alternative requires both conditions together: more than 25 kg of maximum net weight and more than 14 km/h maximum speed of manufacture.
Therefore, a company should not classify its machinery solely by its trade name. It is advisable to review at least:
- Technical sheet;
- Documentation from the manufacturer;
- Maximum speed of manufacture;
- Maximum net weight;
- Propulsion system;
- Individual identification of the team.
What does “made of circulation” mean?
This is one of the points that requires the most precision.
The law defines as a fact of circulation the use of a motor vehicle that complies with its regulations. function as a means of transport at the time of the accident, Independently:
- From the characteristics of the vehicle;
- Of the terrain on which it will be used;
- Whether it is standing or moving.
Therefore, the fact that a team is within a ship, warehouse, farm or private property It does not in itself exclude the application of the traffic regime.
However, the specific function performed must also be analyzed. The explanatory statement itself explains that a different use of the transport function — for example, the use of the vehicle as a source of energy for rialindustrial or agricultural purposes — may fall outside that concept of the fact of circulation.
This distinction is important: One thing is to determine whether the vehicle meets the legal definition of a motor vehicle, and another thing is to analyze whether a specific accident constitutes a traffic incident covered by mandatory insurance.
Do all forklift trucks need mandatory insurance?
A “yes” answer should not be automatically given.
A lift cart or mechanical bull It must be analyzed according to the technical criteria of Law 5/2025. In practice, a unit will be included in the definition of a motor vehicle when, among other legal requirements, it meets:
- A Maximum manufacturing speed exceeding 25 km/h; or
- A Maximum net weight exceeding 25 kg together with one Maximum manufacturing speed exceeding 14 km/h.
When a forklift meets the legal definition and has its usual parking in Spain, the regulations establish the obligation to subscribe to and maintain the corresponding insurance for each vehicle, except for the cases provided for by law.
Therefore, in the face of the question “Is insurance mandatory for a forklift truck?”, The professional answer is:
It depends on the technical characteristics of the unit. The manufacturer's data must be checked and the obligation must not be assumed simply because it is a forklift truck.
What happens if you only work inside a warehouse or private premises?
The fact of not going out into public it does not constitute an exclusion in itself.
If the vehicle meets the legal definition, the location on a ship, yard, or private property does not automatically eliminate the insurance obligation. Moreover, an accident occurring while the vehicle is performing its transport function can be a traffic incident regardless of the terrain it is used on.
This point affects companies in particular logistics, manufacturing, distribution and storage that for years they have managed certain forklifts exclusively as internal machinery.
Do electric pallet trucks need insurance?
There is also no single answer for all pallet trucks.
A electric or self-propelled pallet truck It must be analyzed using the same technical criteria. For example:
- If it exceeds the 25 km/h maximum speed of manufacture, You can enter the first legal alternative;
- If it weighs more than 25 kg and exceeds the Maximum speed of 14 km/h at the time of manufacture, You can enter the second one.
A pallet exceeding 25 kg that Do not exceed 14 km/h It is not included in the second alternative solely because of its weight. Similarly, exceeding 14 km/h is not sufficient on its own for that alternative if the weight requirement is also met, unless the equipment exceeds 25 km/h and the first requirement applies.
That is why we advise against applying general rules of the kind “Every electric pallet needs insurance” o “all slow pallet trucks are exempt”. You need to verify the specific equipment and also assess what other coverage rialcompanies offer.
Mandatory insurance for industrialrial and construction machinery
Searches on Compulsory machinery insurance for industryrial they raise the same problem: “industrial machineryrial” is not a homogeneous category for the purposes of Law 5/2025.
They may require the review of equipment such as:
- Loaders;
- Dumpers;
- Mini loaders;
- Certain self-propelled machines;
- Maintenance teams;
- Mobile machinery used in rialindustrial plants;
- Certain construction machinery.
Inclusion should not be presumed by the team's name. Checks must be made Technical criteria of Article 1 bis and the specific situation of the vehicle.
Retroexcavators, loaders, dumpers and mini loaders
In the face of such inquiries as “Is insurance for a backhoe required?” o “What safety equipment does a loader need?”, The correct procedure is to check:
- If the machine is driven solely by mechanical force and moves on the ground;
- Its maximum speed of manufacture;
- Its maximum net weight;
- Their usual parking situation;
- The insurance policies already contracted;
- The effective use of equipment.
We do not recommend giving a closed answer based solely on whether it is a backhoe, dumper or mini loader.
In addition, mandatory traffic insurance should not be confused with the protection of the machine itself. Risks such as certain rialmaterial damage or the breakdown of equipment and machinery require the consideration of other solutions, such as a Damage insurance for companies, Always in accordance with the guarantees, limits and exclusions of the contracted policy.
What about the agricultural machinery?
Law 5/2025 also requires the review of certain equipment used in agricultural operations, but It does not automatically convert all agricultural machinery into a vehicle subject to the same regulations. just because of being part of the sector.
In teams like:
- Tractors;
- Harvesters;
- Self-propelled equipment;
- Certain mobile machinery;
- Other vehicles used on agricultural farms;
It is necessary to check both their previous regime and the technical characteristics of each unit.
The analysis takes on special importance when the team:
- It moves within the farm;
- It travels on internal roads;
- Carries out transport functions;
- It can meet the legally established weight and speed thresholds.
Companies and farms that need to review the risk in a more comprehensive way can consult the solutions offered by PIB Group Iberia for insurance for agricultural activity, where, among other things, vehicle and agricultural machinery insurance and agricultural civil liability are contemplated.
Since when is insurance mandatory?
The Law 5/2025 is from July 24, 2025 and it was published in the BOE on July 25, 2025. The rule established a transitional period for vehicles that did not previously qualify as motor vehicles and became motor vehicles after that period. six months counted from the day following the publication to subscribe to the mandatory insurance.
That transitional period has already ended. Once the adaptation period has expired, the resulting date is the January 26, 2026.
During the transitional period, the law itself temporarily excluded the application of Article 3 to those vehicles. That temporary situation should no longer be presented in 2026 as a “grace period” opened.
What penalties can be imposed for failing to insure a required vehicle?
The Article 3 of the consolidated text of the Law on Civil Liability and Insurance in the Operation of Motor Vehicles considers consequences for failing to fulfill the insurance obligation, including:
- Prohibition of movement of the vehicle not insured;
- Vehicle deposit in the legally provided terms;
- Penalty of 601 to 3,005 euros, The decision is based on factors such as whether the vehicle was in motion, its category, the service provided, the severity of the damage, the duration of the lack of insurance coverage, and the repetition of the offense.
The exact amount It is not automatic or identical in all cases.
For this reason, a company with potentially affected equipment should not limit itself to checking whether there is any “policy” linked to the activity. It should review whether each vehicle subject to the obligation is properly insured.
Does the general company RC replace mandatory insurance?
No. When a vehicle is legally subject to mandatory civil liability insurance, a general civil liability policy should not be considered automatically to replace that legal obligation.
These are areas that must be reviewed in a coordinated manner.
A company may need to analyze, among other things:
- The mandatory insurance applicable to the vehicle;
- Civil liability arising from their activity;
- Possible risks of exploitation;
- Damage to third parties outside the scope of mandatory insurance;
- Damage suffered by its own assets;
- Limits, limitations and exclusions.
That is why it is advisable to review the insurance plan and the Civil liability insurance for companies, Without assuming coverage that will depend on the specific conditions contracted.
How to review a company's machinery park
To verify compliance with Law 5/2025, we propose a ordered review of the equipment park.
1. Create a complete inventory
To include:
- Forklifts;
- Mechanical bulls;
- Self-propelled pallet trucks;
- Harvesters;
- Mobile industrialrial machinery;
- Construction machinery;
- Agricultural equipment;
- Other vehicles driven by mechanical power.
2. Collecting the technical information
For each unit:
- Manufacturer;
- Model;
- Serial number or identification;
- Maximum net weight;
- Maximum speed of manufacture;
- Type of propulsion;
- Technical documentation available.
3. Apply legal criteria
Check if:
- Exceeds 25 km/h; or
- Simultaneously exceeds the 25 kg and the 14 km/h.
4. Review existing insurance policies
It is not enough to identify a general policy. It is advisable to check:
- What vehicle is declared;
- What use has been reported;
- What coverages exist;
- What exclusions apply;
- If there are differences between the operational reality and the information provided.
5. Coordinate the various policies
When a company manages multiple units, it may also make sense to review the program organization through solutions like Fleet insurance for vehicles, Depending on the nature of the park and the applicable subscription criteria.
